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Tag: cut rag

  • Development Hopes to Keep Tobacco Money in Zimbabwe

    Development Hopes to Keep Tobacco Money in Zimbabwe

    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.

  • Zimbabwe Opens $100M Tobacco Plant, Part of 2030’s $7B Goal

    Zimbabwe Opens $100M Tobacco Plant, Part of 2030’s $7B Goal

    Zimbabwean President Emmerson Mnangagwa inaugurated a $100 million tobacco processing plant in Harare last week, developed by agribusiness firm Cut Rag Processors (CRP). The facility can process 3,000 tons of tobacco monthly into cut rag and produce up to 60,000 master cases of cigarettes, equivalent to 600 million sticks. The investment is intended to strengthen Zimbabwe’s limited processing capacity, as the country’s 10 cigarette manufacturers currently produce 4.4 billion cigarettes annually but process only 10–15% of local tobacco. The Tobacco Industry and Marketing Board (TIMB) aims to raise this rate to 30% through private investment to capture more value in the export-oriented sector.

    The expansion supports the government’s target of generating $7 billion in tobacco sector revenues by 2030 under the Food Systems, Agriculture and Rural Transformation Strategy. Zimbabwe earned $1.4 billion from tobacco exports in 2024, with 94% from unprocessed leaf. Production continues to grow rapidly, with the 2025 harvest rising 53% to a record 354,000 tons, representing 92% growth since 2020. TIMB projects output could reach nearly 500,000 tons by 2030, but limited processing capacity remains a challenge.