Tobacco exports reach US$381 million

Zimbabwe has earned US$381 million from tobacco exports so far this year, as the country intensifies efforts to increase value addition and beneficiation in its lucrative tobacco sector.

According to the latest figures from the Tobacco Industry and Marketing Board (TIMB), Zimbabwe has exported 62.3 million kilogrammes of semi-processed tobacco to global markets, with the Far East remaining the largest and most lucrative destination.

The Far East accounted for 34.8 million kg of tobacco exports, generating US$269.6 million at an impressive average price of US$7.75 per kg. Other key markets include Africa, which imported 11.9 million kg worth US$52.5 million at US$4.39 per kg, and the Middle East, which bought 7.1 million kg valued at US$21.9 million at US$3.09 per kg.

The European Union imported 5.06 million kg of Zimbabwean tobacco worth US$27 million, paying an average of US$5.33 per kg, while the Americas purchased 2.56 million kg valued at US$7.6 million at US$2.98 per kg. Oceania, though a smaller market, paid the highest average price per kg at US$8.45 for 28,560 kg of tobacco worth US$241,332.

Zimbabwe is one of the world's top five producers of flue-cured tobacco, renowned for its unique flavour and high quality. The crop is the country's leading agricultural export and provides the best economic return per hectare. Its value chain supports over 1.2 million workers and indirectly benefits more than six million people.

In a push to maximise revenue, the Government and private sector players are ramping up investment in value addition. Currently, only 10.15% of the tobacco produced in Zimbabwe is being transformed into cut rag and cigarettes, far below the national target of 30% by 2025.

"There is a strategic focus on increasing the proportion of tobacco processed locally to boost exports of higher-value products," said a TIMB official. "Progress is being made, but more investment is required to reach our target."

To support this drive, ten cigarette manufacturing companies are operating in Zimbabwe with a combined annual production capacity of approximately 4.4 billion sticks. Authorities say boosting cigarette exports will not only enhance foreign currency earnings but also create more local jobs and increase industrial capacity.

As Zimbabwe pushes ahead with its tobacco beneficiation strategy, analysts say achieving the 30% target could significantly transform the sector, shifting it from a raw material exporter to a regional hub for tobacco processing and manufacturing.