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Tag: Zimbabwe

  • Zimbabwe Tobacco Farmers Want Forex Review as Season Approaches

    Zimbabwe Tobacco Farmers Want Forex Review as Season Approaches

    As Zimbabwe prepares for the March 4 opening of the 2026 tobacco marketing season, growers are urging authorities to review the 70:30 foreign currency retention policy, arguing that receiving 30% of payments in local currency (ZiG) erodes profits as most production costs are pegged in U.S. dollars. Zimbabwe Tobacco Growers Association chairman George Seremwe said farmers are ready for the season but want the policy aligned with input costs, while Tobacco Farmers Union Trust president Edward Dune noted that fertilizers and other inputs are sold in foreign currency, reducing the real value of local currency payments. The marketing season, announced by the Tobacco Industry and Marketing Board (TIMB), will coincide with the launch of the Tobacco Value Chain Transformation Plan 2, which targets 500 million kg annually by 2030, with more than 400 million kg expected this year.

    TIMB said it has licensed 48 contractors and 46 Class A buyers for the 2025/26 season, with three auction floors — Tobacco Sales Floor, Premier Tobacco Auction Floors and Ethical Sales Floor — set to operate. Authorities are also cracking down on side marketing and informal buyers offering low prices, while farmer groups including the Zimbabwe National Farmers Union have urged growers to sell through formal channels to secure better returns. With 113,327 registered growers and a 15% increase in planted hectarage, officials say the 2026 crop outlook remains positive, reinforcing Zimbabwe’s position as Africa’s leading tobacco producer.

  • Zimbabwe’s Increased Efficiency Base for Market Growth

    Zimbabwe’s Increased Efficiency Base for Market Growth

    Zimbabwe’s Tobacco Industry and Marketing Board (TIMB) released projections for the 2025/26 growing season, interpreting the numbers as a nation that is becoming more efficient. Registered farmers declined 19.3% to 101,443, yet planted area increased 21.7% to 113,536 hectares, suggesting rising productivity and capital intensity. One such example of progress, according to the TIMB, is the irrigated planted area increasing to 24,000 hectares this season, up from 19,700 hectares last season.

    Contract farming continues to dominate, accounting for about 75.6% of planted area, though industry observers note that the 15% share of self- or bank-financed growers offers renewed support for Zimbabwe’s traditional auction system.

    Output is projected to climb to 400 million kg this year from 354 million kg last season, reinforcing tobacco’s position as Zimbabwe’s largest agricultural export and second-biggest foreign currency earner after gold. Export earnings reached $1.4 billion by mid-December 2025, down slightly year on year, as weaker demand from traditional Asian markets—particularly China—was offset by strong growth in Europe and steady gains within Africa. The European Union stood out, with export earnings surging 64.5% to $169.6 million, reflecting rising demand for Zimbabwe’s flue-cured Virginia leaf, while the Far East remains the largest market, accounting for 60% of total export value despite a 14% decline.

  • Zimbabwe Tells Tobacco Farmers to Stop Planting, Get Tending

    Zimbabwe Tells Tobacco Farmers to Stop Planting, Get Tending

    This week, Zimbabwe announced that it exceeded its tobacco planting target for the 2025/26 season, surpassing a record 140,000 hectares, prompting the government to urge farmers to halt further planting and focus on crop management to maximize yields and leaf quality. Agriculture Permanent Secretary Prof. Obert Jiri said late-planted dryland tobacco should be curtailed, with emphasis now on pest and disease control, weed management, and split fertilizer application amid heavy rains. A national crop and livestock assessment later this month is expected to confirm strong early performance and yield prospects, with fertilizer supplies largely adequate despite short-term top-dressing delays.

  • Europe Helping Offset China Losses in Zimbabwe’s Tobacco Exports 

    Europe Helping Offset China Losses in Zimbabwe’s Tobacco Exports 

    Zimbabwe’s tobacco exports dipped 0.7% from the previous year to $1.36 billion (as of mid-December), thanks in part to exports to China dropping from $953.2 million to $819.3 million. Despite the 14% decline, the Far East still accounted for 60% of the nation’s total tobacco export value, all data according to the Tobacco Industry and Marketing Board (TIMB).

    While traditional Asian markets cooled, a massive surge in European demand and steady growth within Africa helped offset the overall decline. The European Union emerged as the standout growth market this season, with export values skyrocketing by 64.5%, going from $103.1 million to $169.6 million. According to the TIMB, the surge reflects a growing preference for Zimbabwe’s high-quality, flue-cured Virginia leaf among continental manufacturers.

  • 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.

  • The Global Tobacco Industry is Solving The Wrong Problem

    The Global Tobacco Industry is Solving The Wrong Problem

    A new opinion piece, titled “The Global Tobacco Industry Is Solving the Wrong Problem,” by Zimbabwean entrepreneur Smart Chireru argues that the global tobacco industry is misdirecting its focus by optimizing branding, regulation, and distribution while ignoring a major structural inefficiency in where tobacco is processed. Chireru contends that large volumes of African flue-cured Virginia tobacco are exported unprocessed, shipped overseas for manufacturing, and then redistributed globally—an approach he describes as a legacy supply-chain flaw that adds cost, risk, and complexity without creating value.

    The article calls for a shift toward processing tobacco closer to where it is grown, citing examples from other industries that have adopted near-source manufacturing, bonded facilities, and integrated traceability. Chireru argues that modern compliance tools—such as serialization, blockchain tracking, and export-only processing—can mitigate risks often cited as barriers to origin-based manufacturing, while reducing logistics costs and working capital strain.

    Using Zimbabwe as a case study, the piece highlights the country’s combination of high-quality tobacco, skilled labor, and special economic zone frameworks as an opportunity for globally competitive processing at origin. Chireru concludes that the next competitive advantage for tobacco companies will come from supply-chain intelligence and structural efficiency, not incremental gains in marketing or tax strategy.

  • Zimbabwe Tobacco Planting Up 21%

    Zimbabwe Tobacco Planting Up 21%

    Zimbabwe’s tobacco hectarage increased by 21% to 100,594 hectares this season, up from 83,391 hectares during the same period last year, according to the Tobacco Industry and Marketing Board (TIMB). Mashonaland West leads production with the largest combined area under irrigated and dryland tobacco, followed by Manicaland and Mashonaland Central, reflecting strong growth across major producing regions. The TIMB said 90% of growers are operating under contract farming arrangements.

    While production has expanded into new regions, the government is seeking to reduce reliance on offshore funding and has proposed a $60 million facility to boost domestic financing, support sustainable growth, and promote value addition in the sector.

  • China Key to Zimbabwe’s Record Tobacco Output

    China Key to Zimbabwe’s Record Tobacco Output

    Zimbabwe’s tobacco sector has surpassed 350 million kg in 2025, thanks in large part to Chinese support, Finance Minister Mthuli Ncube said. Speaking in Harare after signing agreements on China-aid irrigation projects, Ncube highlighted China’s role in providing both credit facilities and market access through China Tobacco, helping small- and medium-scale farmers grow the sector beyond expectations.

    The assistance has helped Zimbabwe maintain its position as Africa’s top tobacco producer and a significant player globally. The tobacco industry remains a cornerstone of Zimbabwe’s agriculture, supporting over 160,000 households, according to government data.

  • 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 Nears $1.1B From Tobacco Exports

    Zimbabwe Nears $1.1B From Tobacco Exports

    Zimbabwe earned $1.1 billion from 201.4 million kg of semi-processed tobacco exported between January and November, according to the Tobacco Industry and Marketing Board. This compares with $1 billion from 208.4 million kg during the same period last year.

    The Far East remained the top buyer, taking 89.1 million kg worth $630.7 million at an average $7.08/kg. Africa followed with 33 million kg valued at $154.6 million, while the Middle East bought 30 million kg for $88 million. The EU imported 27.2 million kg at $5.83/kg, and Europe purchased 12.8 million kg at $5.09/kg. The Americas bought 9.1 million kg, and Oceania, though a small buyer, paid the highest price at $8.45/kg.

    Tobacco remains Zimbabwe’s top agricultural export and key foreign currency earner, generating $1.3 billion in 2024 and contributing roughly 30% of total exports.