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The Herald, August 30, 2013

Tobacco Industry and Marketing Board director Dr Andrew Matibiri has said Zimbabwe this year earned more than US$1,2 billion from the tobacco industry.

Speaking at the TIMB stand at the Harare Agricultural Show yesterday, Dr Matibiri said he was pleased with tobacco sales proceedings as the season nearly comes to an end.

“At the moment, the Zimbabwe tobacco industry has generated US$1,21 billion into our economy,” he said.

Dr Matibiri said that at least US$610 million of the money was paid to tobacco farmers, while the other half was realised from exports. 

Zimbabwe exports 98 percent of semi-finished tobacco products, while the remaining three percent is locally consumed.

The tobacco industry has been recently beleaguered by side-marketing, reducing trust in the industry’s payments system and this negatively impacted on support for production as financiers were not confident of recovering debts through the central payments processing system.

Dr Matibiri assured farmers and stakeholders that TIMB would adopt zero tolerance to side marketing in the coming selling season.

“Side marketing is a scourge that TIMB does not tolerate,” he said. 

“Whenever insurance companies are seen to be causing discomfort to farmers and other players in the industry, we do not hesitate to stop their activities and operations.”

Dr Matibiri applauded Government for initiating indigenisation in the production phase of tobacco that has resulted in increased numbers of participants and production units.

The private sector has also played a pivotal role in assisting growers through contract growing and marketing arrangements at a time when support from financial institutions was reduced.

Lessons for the day

 Tobacco is one of the major drivers of the economy after gold and other minerals.

 The 2021 marketing season officially closed down on July 14, and the TIMB expected that 200 million kg of tobacco would be sold, as opposed to 184 million kg sold in 2020.

 The Covid-19 pandemic resulted in the further decentralisation of selling floors by province and district, and the sales were conducted under the Covid-19 regulations.

 Tobacco is sold at auction floors and to contracting companies. China is the biggest buyer of Zimbabwean tobacco.

 In 2020, Zimbabwe realised US$782 million from tobacco sales, second from gold.

 Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister Dr Anxious Masuka promised tobacco farmers that they would receive 60 percent of their sales in foreign currency,  compared to 50 percent in the 2020 season.

 The land reform programme was a boon to the agricultural industry as it has seen thousands of smallholder farmers taking an active role in economic activities.

 Public, private partnerships have assisted in tobacco production as private contractors provide seed, fertiliser and chemicals.

 Government hopes to increase tobacco production to 300 million kg by 2025.