Zimbabwe’s Tobacco Industry on a Growth Path as Auction Floors Open

Zimbabwe’s tobacco industry is set for a promising season, with the Government reaffirming its commitment to the Tobacco Value Chain Transformation Plan (2021-2025). Officially opening the 2024 marketing season yesterday, Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Dr. Anxious Masuka, highlighted the sector’s continued expansion and its critical role in the country’s economic development.

First bale of 2025

Tobacco auction floors opened with initial sales, while contract deliveries, which dominate the market, begin today. The auction system remains vital for self-financed growers and price discovery. The first bale sold for US$4.65 per kilogramme, slightly lower than last year’s opening price of US$4.92. However, the highest price recorded later in the day reached US$4.95 per kilogramme. Production is projected to surpass last year’s 235 million kilogrammes, with estimates reaching 280 million kilogrammes, reinforcing tobacco’s position as Zimbabwe’s second-largest foreign currency earner after gold.

Since the land reform program, tobacco has become a major driver of agricultural prosperity, cultivated by tens of thousands of farmers across the country. Minister Masuka noted that the transformation plan seeks to enhance output and value addition, positioning Zimbabwe as a key player in global tobacco markets. He reported that value addition and beneficiation have increased from two percent to seven percent since the plan’s launch, reflecting progress in local processing efforts.

Addressing stakeholders, Minister Masuka emphasized tobacco’s contribution to economic growth, expressing gratitude to farmers, merchants, processors, and institutions such as the Tobacco Research Board and the Tobacco Industry and Marketing Board (TIMB). He outlined Zimbabwe’s ambition to increase the share of locally processed tobacco into cut rag and cigarettes from two percent to 30 percent by 2025, boosting exports of finished products.

“Preliminary information suggests an increase in value addition and beneficiation from two percent to seven percent during the plan period. I have provided this rather unsavoury state of progress in the transformation of the sector to remind us of the collective obligation to deliver on the plan for the sake of our country,” he said.

Zimbabwe’s tobacco remains a preferred source of flavour styles globally, and Minister Masuka called for strategic partnerships to boost production, enhance value addition, secure local financing, and manage risks through farm-level diversification.

TIMB chairman, Mr. Patrick Devenish, underscored the significance of the auction floor as a platform for growers to showcase their hard work and secure fair prices. He reaffirmed TIMB’s commitment to continuous improvement, including investments in technology and human capital. To enhance transparency and efficiency, the board is rolling out a biometric grower management system, which will address longstanding challenges such as side marketing and fraud.

“The new system introduces biometric data capture, linking each farmer’s unique grower number to their fingerprints, GPS coordinates of their household and farm, and demographic data. This comprehensive profiling protects farmers and ensures that only genuine farmers participate in the market,” he said.

As Zimbabwe seeks to consolidate its standing in the global tobacco industry, the Government and stakeholders remain focused on sustainable growth, value addition, and ensuring the industry’s long-term viability.

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