Tobacco sales rake in US$279m

Zimbabwean tobacco farmers have earned US$279 million from the sale of 81.3 million kilogrammes of flue-cured tobacco so far this season, as the industry intensifies efforts to locally process at least 30 percent of the crop to boost earnings and create more jobs.

The 2025 tobacco marketing season, which opened on March 5, has seen robust sales, with statistics from the Tobacco Industry and Marketing Board (TIMB) showing that by day 31 of trading, 77 million kg of tobacco worth US$265 million had been sold through the contract system. The average price on the contract floors was US$3.44 per kg, while an additional 4.3 million kg valued at US$14.2 million was sold at auction at an average price of US$3.30 per kg.

The highest recorded price during the period was US$6.30 per kg at the contract floors, with the auction system reaching a ceiling price of US$4.99 per kg.

In addition to local sales, Zimbabwe has exported 50 million kg of tobacco worth US$315.2 million at an average price of US$6.31 per kg. The Far East continues to dominate as the top destination, importing 29.8 million kg valued at US$240.1 million — an average price of US$8.05 per kg.

Other key markets include Africa, which imported 7.2 million kg worth US$30.3 million; the Middle East, which purchased 5.5 million kg valued at US$12.4 million; the European Union with 4.4 million kg worth US$23.5 million; the Americas with 2.3 million kg valued at US$7.1 million; and other parts of Europe which imported 477,200 kg worth US$1.4 million. Oceania recorded the smallest volume at 28,560 kg but paid the highest price per kg at US$8.45, contributing US$241,332 in total revenue.

Tobacco remains one of Zimbabwe's top foreign currency earners, generating over US$1 billion annually. However, industry stakeholders believe that figure could significantly increase if more of the crop were processed locally and exported as finished products.

Tobacco Association of Zimbabwe president Mr George Seremwe emphasised the need for local value addition. "With 98 percent of tobacco exports in semi-processed form, Zimbabwe is pushing to process at least 30 percent locally to retain more value domestically. We are currently exporting jobs and losing revenue by selling raw tobacco," he said.

TIMB chief executive Mr Emmanuel Matsvaire said tangible progress is being made. "The target was to increase value addition and beneficiation of tobacco into cut rag and cigarettes from two to 30 percent by 2025, and to date we have achieved 10.15 percent. Several efforts are being made by Government and private partners to increase value addition," he said.

Zimbabwe currently has more than 10 cigarette manufacturers operating with a combined production capacity of around 4.4 billion cigarette sticks per year. Investments have been made in new tobacco processing plants to help scale up local beneficiation.

As one of the world's top five producers of flue-cured tobacco, Zimbabwe enjoys a strong global reputation for the quality and flavour of its leaf. Tobacco offers the best economic return per hectare compared to other major crops, supporting a value chain that employs over 1.2 million people and provides livelihoods for up to six million dependants.

With increased support for processing and a growing focus on value chain development, Zimbabwe's tobacco industry is on track to become a US$5 billion sector, delivering greater economic benefits to farmers and the country at large.