daniel chigunwe
Oliver Kazunga
ZIMBABWE’S tobacco export earnings surged by 16,6 percent to US$1,4 billion from the 243,3 million kilogrammes (kg) shipped last year, figures from the Tobacco Industry and Marketing Board (TIMB) show.
The country bettered the US$1,2 billion it realised in 2023 from the export of 235,4 million kg of the golden leaf.
Tobacco, grown mostly by small-scale farmers, is Zimbabwe’s biggest agricultural export and one of the three biggest single-export earners, along with gold and platinum group metals (PGMs).
Smallholder farmers, allocated land by the Government under the hugely successful Land Reform Programme Zimbabwe embarked on in 2000, are the biggest producers of the crop.
Notably, most of the farmers use less-sophisticated equipment and have limited access to other key resources such as funding, but they have for years performed wonders on their small pieces of land.
Zimbabwe managed a healthy and almost normal tobacco output last year despite the severe impact of the El Niño-induced drought, which decimated most other rainfed crops.
According to TIMB, which regulates the production and marketing of tobacco produced in the country, Zimbabwe exports the golden leaf to over 60 countries, with major buyers being China, the United Arab Emirates, South Africa and Indonesia.
“A total of 243,3 million kg of tobacco valued at US$1,4 billion had been exported as of December 27, 2024, compared to 235,4 million kg valued at US$1,2 billion exported during the same period last year (2023),” said TIMB in a written response following an inquiry by this publication.
TIMB said the number of registered growers last year had risen to 126 092 compared to 112 904 in the same period in 2023. Although rains delayed in most parts of the tobacco growing regions, the fact that at least significant amounts were received towards the end of December ignited hopes for many farmers, as the crop can survive even with little moisture.
In an interview, the Zimbabwe Farmers’ Union chief economist, Dr Prince Kuipa, whose organisation represents small-scale growers, noted: “What’s significant are the volumes that are being produced under the circumstances.
“If we are talking of the 2023/2024 season, I would say that’s quite an impressive figure because that’s the same period when we had very little rainfall; in some areas having crops being written off, and, therefore, I think when we compare with the previous season, it’s quite impressive.”
Even after the impact of the drought, when most of the other crops failed, he said, Zimbabwe had a good tobacco crop output, which positively impacted export volumes and the value of the exported golden leaf.
Reports from the Reserve Bank of Zimbabwe show that revenue generated from tobacco exports is enough to import adequate fuel to keep the country running. This indicates the centrality of the crop towards economic development.
“It is money in the pockets of the citizens.
“You will notice that 25 percent of it will go to the Government in the form of foreign currency surrender value, which is also important for national development in terms of the Government providing services to its citizens — and that includes infrastructure; roads, rail and electricity, including generating the much-needed foreign currency,” said Dr Kuipa.
“The export volumes for last year are quite an impressive figure and could even grow this year because of the relatively better rainfall expected this season as compared to last season.”
Zimbabwe Commercial Farmers Union president Dr Shadreck Makombe expressed optimism that the 300 million kg annual production target for 2025 was achievable, on the back of the Government’s support to farmers.
“Given the support tobacco farmers have received over the years, we are confident that the 300 million kg projection is achievable and this would also be good in spurring exports and foreign currency generation,” he said in a recent interview with this
publication.
In 2021, the Cabinet approved the Tobacco Value Chain Transformation Plan to boost production to 300 million kg starting this year, while transforming the sub-sector to a US$5 billion economy and a US$10 billion industry by 2030.
In 2023, Zimbabwe produced 294 million kg of the golden leaf, which declined to 234 million kg last year due to the adverse effects of the drought that hit the country and other parts of Southern Africa.
Under the Tobacco Value Chain Transformation Plan, the Government also aims to raise localisation of the crop’s funding to 70 percent, improve the level of value addition and boost cigarette output to 30 percent from 2 percent.
TIMB indicated it was rolling out several initiatives to enhance the viability of tobacco farming to achieve the targeted 300 million kg this season.
During a tobacco conference organised by Zimpapers late last year, stakeholders raised concern over continued foreign funding of tobacco growing in Zimbabwe, which has left the bulk of the proceeds of the crop being enjoyed offshore.
They called for increased local tobacco value chain financing.
