Online Reporter
Nelson Gahadza
Zimpapers Business Hub
China’s financial support and market have been key in driving the rapid growth of Zimbabwe’s tobacco sector, which has broken production records in recent years and is now moving into value addition and beneficiation, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said.
He said this while responding to questions during a recent signing ceremony for Letters of Exchange on the China-Aid Upgrading and Maintenance of Irrigation Schemes with the Chinese Ambassador to Zimbabwe, Mr Zhou Ding.
Tobacco is a strategic crop for Zimbabwe as it is the country’s largest agricultural export and one of the biggest export earners, ranking only behind gold, while the sector employs hundreds of thousands of people across the country.
In 2024, tobacco export earnings reached a record US$1,3 billion.
Minister Ncube said the outstanding tobacco production was driven by small- to medium-scale farmers supported through Chinese-backed financing arrangements.
“China has been a very important partner to Zimbabwe on the regeneration of the tobacco sector to a point where the sector has exceeded all expectations. Last year we produced something like 350 million kilogrammes of tobacco and this is the highest production ever in the history of Zimbabwe,” he said.
Minister Ncube attributed the growth to credit facilities provided to Zimbabwe farmers through China Tobacco, which have enabled farmers to access inputs and increase production.
“The farmers have been able to benefit from the credit facilities provided through China -Tobacco and it has been a remarkable success,” he said.
Beyond financing, he said China had played a critical role by providing a reliable export market for Zimbabwean tobacco, creating an integrated value chain from production to off-take.
“China has been critical in the tobacco sector, but also does not just stop there, providing credit, it also provides the market, the off-take side,” Minister Ncube said.
He added that the arrangement has helped Zimbabwe maintain its position among the world’s top four tobacco producers, including China, Brazil and the United States.
Minister Ncube said early indications from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, point to even higher output this year.
“From the figures I am hearing from the Ministry of Agriculture for this year, the 350 million kilogrammes will be exceeded and we are closer to 400 million, if not more,” he said.
The finance minister said the relationship with China was now extending into beneficiation, with joint ventures emerging to process tobacco locally and manufacture finished products.
“We are beginning to see a joint venture, again, between Zimbabwe and China in processing the tobacco, producing cigarettes.
“So that beneficiation is most welcome, because we want to also develop the tobacco value chain,” MInister Ncube added.
