Online Reporter
Patience Maturure
Agriculture Reporter
Zimbabwe has invited the China National Tobacco Corporation to establish a cigarette manufacturing plant in the country to drive beneficiation in the domestic tobacco value chain.
China National Tobacco Corporation (CNTC) is the world’s largest producer of cigarettes and primarily serves the huge Chinese domestic market.
A state-owned entity, CNTC, is increasingly looking to develop overseas markets.
The initiative aligns with the vision of transforming Zimbabwe into a regional hub for production and exports, in view of the African Continental Free Trade Area (AfCFTA), of which Zimbabwe is a member.
Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka on Wednesday last week said the Government had come up with the Tobacco Transformation Plan focusing on four elements.
“The first is just increasing production and productivity and we appear to be on the right course,” he said. “The second is that we wanted to increase value addition and beneficiation since only one percent of tobacco is beneficiated to cigarettes in the country.”
Zimbabwe exports the bulk of its tobacco, approximately 99 percent in semi-processed form, with China being one of the biggest destinations.
“Over 50 percent of our tobacco is designed for the Chinese market and I hope that you continue to support Zimbabwe’s development,” he said.
“Our President has directed that we increase tobacco value addition and beneficiation to about 30 percent by 2030.”
Minister Masuka said the proposed plant would leverage AfCFTA opportunities to expand into continental markets, combat illicit trade and protect farmers’ livelihoods and national revenue.
The tobacco industry is a major contributor to the national economy, playing a significant role in agricultural exports and the economy.
Zimbabwe is the largest tobacco producer in Africa and the fifth largest globally.
Tobacco accounts for roughly 50 percent of agricultural exports and employs thousands across the country.
The industry has proposed incentivising investment in local processing and cigarette manufacturing to reduce reliance on raw leaf exports.
The industry is also calling for the development of tobacco by-products such as nicotine extraction, biomass energy and paper products to diversify revenue streams.
Collaboration between the Government and industry players is expected to create export-ready products that can access new and premium markets.
According to the TIMB, emerging markets have to be explored in Asia, the Middle East and Africa.
Value addition of tobacco has increased from 8,8 percent in 2023 to 10,15 percent in 2024.
Zimbabwe has three cutrag processing facilities with a capacity of 30,4 million kilogrammes, but only processes 7,3 million kgs.
The country has nine factories with the capacity to produce 17 billion sticks of cigarettes annually, but production stands at 4 billion sticks.
