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Martin Kadzere
LEADING mass media company, Zimbabwe Newspapers (Zimpapers) Group, business publication Business Weekly will next week join forces with the Tobacco Industry and Marketing Board (TIMB) to host a high-level tobacco conference to tackle critical issues impacting the current state and prospects of the industry, focussing on initiatives needed to give impetus to the country’s tobacco industry transformation strategy.
The conference, to be held at the Rainbow Towers in Harare on June 7, 2024, will bring together key players in the industry, including farmers, financial institutions, and senior Government officials.
It will explore critical issues impacting the tobacco industry, including alternative, locally-driven financing models and challenges surrounding the existing indigenisation policy.
Industry experts say the current reliance on offshore funding means Zimbabwe retains “little value” from the tobacco exports while the dominant contract farming system saddles farmers with debt and limits the financial benefit to the country.
As such, the conference seeks to identify collaboration opportunities between the Government, financial institutions, and key industry stakeholders to develop a roadmap for a more sustainable and profitable tobacco industry.
Although touted as Zimbabwe’s second-biggest foreign currency earner, concerns linger about the nation’s share of the proceeds from tobacco exports and the true level of Indigenous participation.
On the other hand, while land ownership by black Zimbabweans might suggest greater participation, the reality is the value chain remains dominated by multinationals.
Black farmers are often relegated to peripheral roles, with limited control. Concerns also exist about the true independence of indigenous merchants, who may be financially supported by multinationals, hindering genuine economic empowerment.
Compounding these challenges, black Zimbabwean companies struggle to break into new markets. Dominated by multinational corporations, many existing black-owned businesses reportedly act as mere surrogates for these larger entities.
The dependence on MNCs restricts genuine economic empowerment for black Zimbabweans.
“We expect the conference to raise awareness about the current model’s drawbacks and foster a clear understanding of alternative financing options,” Business Weekly editor, Mr Herbet Zharare said.
“We hope to identify key players and their roles in implementing a new model, ultimately leading to collaborative action plans for a more sustainable tobacco financing system in Zimbabwe.
“The conference presents a critical opportunity to not only address foreign financial dependence but also ensure the true empowerment of black Zimbabweans within the tobacco industry.”
The conference also delves into strategies for maximising Zimbabwe’s value capture from tobacco.
Discussions will centre on attracting domestic and foreign investment to build processing facilities and infrastructure for beneficiation. Additionally, critical Environmental, Social and Governance considerations within the tobacco sector will be addressed, including navigating insurance challenges arising from climate change and eradicating child labour practices.
The conference boasts a prestigious lineup of speakers, including Professor Jiri, the Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Mr Emmanuel Matsvaire, acting chief executive of the TIMB, Mr Paul Zakariya, executive director of the Zimbabwe Farmers Union, representatives from the Ministry of Finance, Economic Development and Investment Promotion, the Bankers Association of Zimbabwe representative Willing Dizawatiza, leading bankers, insurance companies, tobacco merchants, cigarette producers and prominent economists.
Online Reporter
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