Online Reporter
Stakeholders have gathered at Cresta Lodge, Msasa, for the 2025 Tobacco Conference in Harare, organised by Zimpapers alongside other key players in the industry.
Under the theme “Transforming Zimbabwe’s Tobacco Industry through Beneficiation and Value Addition,” this conference has attracted a wide array of participants, including merchants, farmers, manufacturers, financial institutions, policymakers, and researchers.
A significant focus of the discussions is the current practice of exporting raw tobacco, with alarming figures indicating that 85 percent of the crop is sent abroad unprocessed.
This trend raises critical concerns about the potential revenue loss for the country and the overall sustainability of Zimbabwe’s tobacco sector. Join us as we bring you real-time updates and insights from this important event, aimed at reshaping the future of tobacco in Zimbabwe.
Stay back and relax as our journalists, Ellita Chikwati and Edgar Vhera, give you the event’s blow-by-blow account.
Zimbabwe ranks 5th in global tobacco production, contributes over US$1 billion to economy: TIMB
TIMB representative Mr Tapiwa Chimedza, who is representing TIMB CEO Mr Emmanuel Matsvaire, is now giving his address.
He says Zimbabwe stands as the 5th largest tobacco producer in the world with over 140 000 active growers.
Tobacco contributes over US$1 billion annually to the economy, making it the flagship of the agricultural sector and a key driver of rural livelihoods.
The sector is targeting 30 percent local value addition by 2025, in line with National Development Strategy 1 (NDS1).
“Currently, it is at 10.15 percent value addition, up from 8.8 percent in 2023. Cutrag processors have a capacity of 30.4 million kgs but are only processing 7.3 million kgs.
“Nine cigarette manufacturers are capable of producing 17 billion sticks annually, yet are only producing 4 billion sticks,” he said.
Ministry of Industry advocates for value addition in tobacco sector
Ministry of Industry and Commerce Director, Mr Nhema, is now on the podium. He says there is a need to promote value addition to increase earnings from the tobacco produced in Zimbabwe.
“The Ministry is focused on boosting value addition through coordinating industrial policies,” Mr Nhema stated.
He also emphasised the need for private sector participation in promoting value addition and beneficiation on a large scale.
He mentioned that the Ministry is working with ZIDA and the Ministry of Finance to unlock sustainable financing that promotes local ownership of processing assets.
On a positive note, Zimbabwe is the only African country with a nicotine extraction plant, and there are opportunities in sustainable waste disposal and converting tobacco residue into organic fertiliser, positioning Zimbabwe as a regional fertiliser hub.
Govt exploring sustainable funding mechanisms for tobacco in Zimbabwe
Elita Chikwati
The Government is exploring ways to establish alternative funding mechanisms for tobacco so that the country does not rely on offshore funding.
This was stated by Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka at the ongoing Tobacco Conference.
Addressing delegates, Minister Masuka noted that the country was not generating much revenue from the sector due to a lack of local funding.
He emphasised the need for innovative funding mechanisms to ensure sustainable growth and development, as well as to increase value addition and beneficiation of the crop.
“For every dollar that comes for financing, 88 cents go back, and only 12 cents remain,” he said.
He added that the Government was considering establishing a seed fund of US$50 million to stimulate local financing for tobacco farmers.
Youths call for increased inclusion in tobacco production
At the Zimpapers Tobacco Conference, youths have called for greater inclusion in tobacco production, value addition, and beneficiation.
There are concerns that youths are being excluded from funding opportunities, as some financial institutions regard them as high-risk, while in some cases, they do not meet requirements, especially regarding collateral.
Youth Empowerment Hub representative Mr. Artwell Murambasvina stated that youths have been sidelined for years and are feeling bitter.
“When policies were designed, they did not include youths, but were directed towards established commercial farmers. Funding mechanisms should be tailor-made to also include youths,” he said.
Zimbabwe Youth Trust President Mr. Josphat Tanga emphasised the importance of empowering youths involved in tobacco production.
“We also want to be contracted to grow the crop, and we should be empowered so we can fully participate in the value chain,” he said.
Some participants, particularly from Indigenous companies, accused young farmers of side marketing. Tobacco Farmers Union Trust Vice President Mr Edward Dune noted that youths sometimes resort to side marketing due to low prices and high production costs, and this issue needs to be addressed.
Online Reporter