Govt targets US$5 billion tobacco industry

Zimbabwe has set an ambitious plan to transform the tobacco value chain into a US$5 billion industry by 2025 through localisation of tobacco financing, increased production and productivity, value addition and beneficiation, and exports of cigarettes.

Some of the objectives of the Tobacco Value Chain Transformation Plan, include:

1. to localise the funding of tobacco to complement external funders;
2. to raise tobacco production and productivity from 262 million kilogrammes to 300 million kilogrammes by 2025;
3. to diversify and increase the production of alternative crops such as medicinal cannabis and increase their contribution to the farmers’ incomes to 25% by 2025;
4.  to increase the level of value addition and beneficiation of tobacco from 2% of total tobacco produced to 30% in order to increase exports of cigarettes; and
5. To create an enabling environment that incentivizes investors to set up shop in the country instead of exporting raw or semi processed tobacco;

“The immediate objective is to increase tobacco production and productivity through increasing the yield per unit, increasing the area under crop and minimizing losses.  The above measures are being taken because the country is not getting maximum benefit from its tobacco crop in terms of value addition and beneficiation,” Ministry of Information, Publicity & Broadcasting Services Minister Monica Mutsvangwa said.

She said Cabinet approved the Tobacco Value Chain Transformation Plan which was presented by Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister Dr Anxious Masuka on Tuesday. 

Already, the Tobacco Research Board is conducting research on alternate crops such as Chia, Industrial Hemp and Sesame, as well as other types of tobacco such as Shisha, which is very popular in the Middle East. 

Research is also being conducted into the extraction of high-value compounds from tobacco, such as nicotine, solanesol and edible oil. Preliminary studies have already been done on the extraction of tobacco edible oil and identified varieties that could be used for oil extraction.

“All these efforts are meant to increase the income that accrues directly to the farmers. The initiatives should contribute significantly to Gross Domestic Product growth, foreign currency generation and employment creation, thereby raising household incomes in pursuit of Vision 2030,” said Mutsvangwa.