Zimbabwe is accelerating plans to move up the tobacco value chain under its new National Development Strategy 2 (NDS2), aiming to lift value addition from about 2% to 30% and reduce reliance on raw leaf exports. While NDS1 missed its 300,000-ton production target due to drought, Zimbabwe produced a record 355 million kg of tobacco in 2025, valued at $1.2 billion, making it the world’s sixth-largest producer. According to the Tobacco Industry and Marketing Board, tobacco contributes more than 25% of national foreign-currency earnings, though 92% of export revenues still come from unprocessed leaf.
NDS2 focuses on local processing through the Tobacco Special Economic Zone, including nicotine extraction plants and expanded cigarette and cut-rag manufacturing. A key milestone was the commissioning of a $102 million Cut Rag Processors facility capable of producing 3 million kg of cut rag per month and 60,000 cigarette master cases.
Government officials say domestic value addition remains far below potential, with current earnings estimated at $1.5 billion versus a theoretical $60 billion if higher-value products were produced. The strategy prioritizes attracting investment, expanding local financing, and creating jobs through processing, packaging, and logistics as Zimbabwe shifts toward exporting finished tobacco products.









