Incentives light up tobacco exports

A government export
incentive scheme earned
66 215 tobacco growers
US$29 346 897 for the
2016 season, according to
Zimbabwe Reserve Bank
governor Dr JP Mangudya.
“In order to incentivise
tobacco growers to increase
production, as well as
promote financial inclusion,
the bank awarded a 5%
export incentive to tobacco
growers payable through
normal banking channels,” he
said in a January statement.
The farmers sold green leaf
tobacco valued at US$588
185 486, according to the
governor.
Total tobacco exports
of 164.5 million kilograms
in 2016 were worth
around US$933 million,
with exports going to 65
countries at an average price
of US$5.67 a kilogram,
according to the Tobacco
Industry Marketing Board
(TIMB).
The incentives are having
the desired effect, with a
15% increase in the number
of registered tobacco
growers for the 2017 season,
according to the TIMB.