Zimbabwe’s tobacco sector is moving toward another record year, projected to exceed 360,000 tons in output, up from 355,000 tons in 2025 and 306,000 tons in 2024, driven largely by contracted smallholder farmers working with foreign-backed agribusinesses, including Chinese-linked firms. According to the Tobacco Industry and Marketing Board, planted acreage increased by 15% with more than 127,000 registered growers, around 95% of whom are smallholders and account for roughly 85% of total output. The sector has rebounded sharply from its 2008 collapse, when production fell to 48,000 tons following land reform disruptions.
While contract farming has expanded access to inputs such as seed and fertilizer and supported export growth across roughly 60 global markets, growers and industry representatives report increasing concerns over debt exposure, fees, and pricing pressures under financing agreements, particularly within systems dominated by Chinese contractors, which account for around 60% of export value. Zimbabwe is also seeking to diversify export destinations and expand domestic cigarette manufacturing, which currently represents about 11% of output, as officials, including Finance Minister Mthuli Ncube, push for greater local value addition amid rising global scrutiny from public health and environmental groups, including the World Health Organization.
