Tag: tobacco production

  • Zimbabwe Pushing Tobacco Processing for Value Addition

    Zimbabwe Pushing Tobacco Processing for Value Addition

    Zimbabwe will intensify tobacco processing and value addition from 2026 as part of efforts to boost exports of finished tobacco products, a senior government official said. Lands, Agriculture, Fisheries, Water, and Rural Development permanent secretary Professor Obert Jiri said plans are underway to encourage the establishment of local processing plants, shifting the industry away from raw leaf exports toward higher-value products, including cigarettes.

    Zimbabwe produced a record 355 million kg of tobacco in 2025, generating about $1.2 billion in sales, and production has the potential rise to 500 million kg by 2030, Jiri said. He argued that converting locally grown tobacco into finished products could dramatically increase export earnings, estimating the potential value of more than $40 billion if current volumes were processed domestically.

    The industry has also undergone a structural shift, with more than 140,000 farmers—over 80% of them smallholders—now involved following land reform. The government says expanding beneficiation will help farmers capture more value and create jobs, building on recent investments such as a $100 million tobacco processing plant commissioned in Harare in November.

  • 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.