Zimbabwe rakes in US$1bn from tobacco exports

The country has exported about 187.6 million kilogrammes of tobacco so far against 185.5 million kilogrammes this time last year.

According to the Tobacco Industry and Marketing Board, prices averaging $5.41/kg from $5.18/kg last year.

In terms of revenue, tobacco sold so far is worth US$1 billion as compared to US$960 million in 2023.

Apparently, farmers have so far bought 30% more seed than last season, and 22,333ha tobacco seedlings have been transplanted to date, almost at par with last season.

As it stands a total of 117,885 growers have been registered to grow tobacco this season, this indicates a 11% rise as compared to last year.

Communal and small-scale commercial farmers constitute the bulk of Zimbabwe’s tobacco farmers, and with no bank credit, most farmers rely on funding from contractors.

At least 90 percent of all tobacco production in the country is on credit provided by foreign contractors, with auctions accounting for the small remainder.

This means that, in real terms, a large proportion of the earnings goes to pay contractors.