Online Reporter
Edgar Vhera, Specialist Writer
THE Government is prioritising the value addition of goods as a key strategy to enhance earnings and achieve the objectives outlined in Vision 2030. This approach focuses on transforming raw materials into higher-value products, thereby stimulating economic growth, creating employment, and fostering innovation.
Deputy Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Vangelis Haritatos, highlighted the importance of value-adding agricultural products before export during a recent Zimbabwe-European Union (EU) business forum. He stressed the need for the country to shift from exporting low-priced raw commodities to high-value finished goods.
“Zimbabwe grows some of the best tobacco in the world, yet we mainly export it raw,” he said.
According to the World Bank, for the 2024 fiscal year, upper-middle-income economies are defined as having a Gross National Income (GNI) per capita between US$4 466 and US$13 845.
Data from the Zimbabwe National Statistics Agency (ZimStats) shows that tobacco export earnings rose from US$1 297 280 021 in 2023 to US$1 427 109 343 in 2024.
Zimbabwe exports tobacco in various forms, including partly or wholly stemmed/stripped tobacco, unstemmed tobacco, tobacco refuse, smoking tobacco, cigarettes containing tobacco, manufactured tobacco, and cigars, cheroots, and cigarillos.
Partly or wholly stemmed/stripped tobacco accounts for 92 percent of earnings, followed by cigarettes containing tobacco at seven percent.
An analysis of average prices across product categories reveals that cigars, cheroots, and cigarillos fetch the highest price at US$41,67 per kilogramme, followed by partly or wholly stemmed/stripped tobacco at US$7,22 per kg. Cigarettes containing tobacco average US$6,16 per kg, while smoking tobacco is priced at US$5,66 per kg.
Zimbabwe’s overall average price stands at US$5,75 per kg (approximately US$0,06 per gramme). In contrast, a premium cigar such as the Cohiba Behike can sell for US$100 or more per 10 to 15-gramme stick — equivalent to around US$10 per gramme. This stark difference highlights the potential value Zimbabwe is losing by exporting raw tobacco.
The same applies to cotton, which is also largely exported in raw form. ZimStats data shows that raw cotton exports (not carded or combed) earned US$15 635 815 in 2024, with 10 369 943 kilogrammes exported at an average price of US$1,51 per kg.
If this cotton had been processed into men’s or boys’ shirts, the country could have earned US$104 487 214. Additionally, Zimbabwe exported cotton linters and yarn, earning US$141 412 and US$2 315 092 respectively.
Had the country exported cotton linters, yarn, and finished garments instead of raw cotton, the total earnings from the 11 866 418 kg exported in 2024 could have reached US$106 943 718.
Zimbabwe is also losing potential revenue by exporting macadamia nuts in raw form instead of as packaged, premium snacks. Similarly, hides are exported raw rather than being processed into leather goods.
Value addition not only increases export earnings but also creates jobs across agro-industries and manufacturing, while enhancing skills development and promoting technology transfer.
