China to set up a cigarette plant in Zimbabwe

China is expected to set up a cigarette manufacturing company in Harare following discussions between the government and officials from the Asian giant, it has emerged.

Finance and Economic Development minister Patrick Chinamasa said at a recent meeting that the government held discussions with the State monopoly company of China, which is one of the major consumers of local tobacco.

He said local companies must focus on value addition to create more jobs. China is the major consumer of Zimbabwean tobacco. Since 2009, the number of farmers growing tobacco has been on the increase.

The golden leaf output has been on the rise and prices have been favorable. But for the 2014/5 season, most tobacco farmers were disappointed because the prices were very low.