News / National
Return of Philip Morris to Zimbabwe rattles sector
19 Feb 2026 at 13:09hrs |
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The recent announcement that global tobacco giant Philip Morris International (PMI) is set to return to Zimbabwe has triggered mixed reactions within the tobacco industry and broader economic circles.
According to media reports, the world's largest cigarette manufacturer by volume is preparing a dramatic comeback to the local market after decades of absence. A PMI delegation led by corporate affairs officer Christos Harpantidis was scheduled to arrive in Harare for high-level meetings with government officials and industry stakeholders.
PMI, which reportedly commands a 67,92% share of the global cigarette market by volume, is said to be exploring both manufacturing and distribution opportunities in Zimbabwe.
Industry insiders believe the company's return could inject fresh capital, modern technology and increased competition into the tobacco value chain, which remains Zimbabwe's second-largest foreign currency earner after gold.
The development comes at a time when China Tobacco International Group (CTIG), Zimbabwe's single largest tobacco buyer, has announced plans to reduce its purchases by up to 15%. The move is understood to align with Beijing's new five-year economic plan and shifting consumer preferences in China toward "super slim" cigarettes, which require less tobacco per unit.
Sector sources warn that China's scaled-back demand could affect prices and farmer incomes.
"China has been our anchor market for over a decade. A 15% reduction is significant and could impact prices and livelihoods," said an independent source within the sector.
With China gradually reducing its footprint, some analysts view PMI's potential return as a timely intervention that could help stabilise demand and support Zimbabwe's estimated 120 000 smallholder tobacco farmers.
"A new major player could help to stabilise demand and prices," said a Harare-based agricultural economist who requested anonymity.
However, others caution that global anti-smoking campaigns and evolving consumer preferences may limit the long-term benefits of increased cigarette manufacturing.
"The world is moving away from smoking. Even as new markets open, we must diversify our agricultural portfolio," said a tobacco marketing consultant.
Another buyer noted that China's shift toward super slim cigarettes, which use less tobacco per unit, presents both challenges and opportunities. "China is moving away from conventional cigarettes to super slim cigarettes that take less tobacco per unit. This is good for Zimbabwe. The more customers, the better," the buyer said.
Meanwhile, a senior official at one of the country's leading tobacco merchant companies dismissed concerns about PMI's planned investment drive.
"We are ready for them. We must not worry. We are the players on the ground," the merchant said.
Government officials have welcomed PMI's renewed interest, describing it as a positive signal of growing investor confidence in Zimbabwe's tobacco sector and broader economy.
According to media reports, the world's largest cigarette manufacturer by volume is preparing a dramatic comeback to the local market after decades of absence. A PMI delegation led by corporate affairs officer Christos Harpantidis was scheduled to arrive in Harare for high-level meetings with government officials and industry stakeholders.
PMI, which reportedly commands a 67,92% share of the global cigarette market by volume, is said to be exploring both manufacturing and distribution opportunities in Zimbabwe.
Industry insiders believe the company's return could inject fresh capital, modern technology and increased competition into the tobacco value chain, which remains Zimbabwe's second-largest foreign currency earner after gold.
The development comes at a time when China Tobacco International Group (CTIG), Zimbabwe's single largest tobacco buyer, has announced plans to reduce its purchases by up to 15%. The move is understood to align with Beijing's new five-year economic plan and shifting consumer preferences in China toward "super slim" cigarettes, which require less tobacco per unit.
Sector sources warn that China's scaled-back demand could affect prices and farmer incomes.
"China has been our anchor market for over a decade. A 15% reduction is significant and could impact prices and livelihoods," said an independent source within the sector.
With China gradually reducing its footprint, some analysts view PMI's potential return as a timely intervention that could help stabilise demand and support Zimbabwe's estimated 120 000 smallholder tobacco farmers.
"A new major player could help to stabilise demand and prices," said a Harare-based agricultural economist who requested anonymity.
However, others caution that global anti-smoking campaigns and evolving consumer preferences may limit the long-term benefits of increased cigarette manufacturing.
"The world is moving away from smoking. Even as new markets open, we must diversify our agricultural portfolio," said a tobacco marketing consultant.
Another buyer noted that China's shift toward super slim cigarettes, which use less tobacco per unit, presents both challenges and opportunities. "China is moving away from conventional cigarettes to super slim cigarettes that take less tobacco per unit. This is good for Zimbabwe. The more customers, the better," the buyer said.
Meanwhile, a senior official at one of the country's leading tobacco merchant companies dismissed concerns about PMI's planned investment drive.
"We are ready for them. We must not worry. We are the players on the ground," the merchant said.
Government officials have welcomed PMI's renewed interest, describing it as a positive signal of growing investor confidence in Zimbabwe's tobacco sector and broader economy.
Source - newsday
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