Zim tobacco exports expected to reach peak levels again

The rising tobacco industry
in Zimbabwe is the country’s
silver lining in an otherwise
depressed – and worsening
– economy and analysts
predict that exports could
reach previously high levels
over the next few years.
The country’s Tobacco
Industry and Marketing
Board (TIMB) recently
announced that tobacco
sales had raked in US$600
million for the 2015/2016
season, with over 200
kilograms of the golden leaf
sold.
Due to late
rainfalls,
Zimbabwe
was expected
to record a
20% decline
in tobacco
output this
year from the
198 million
kg produced
in 2015 but it
had reached
higher numbers by the time
sales ended.
According to the
Zimbabwe Tobacco
Association (ZTA), in its
heyday (1960s to 1990s)
Zimbabwe accounted
for around 20% of the
world’s f lue-cured tobacco
production – the main
ingredient in cigarettes.
“At peak production, the
industry employed about
50% of all people employed
in commercial agriculture.
It was also the country’s
single largest foreign
currency
earner and
accounted
for about a
third of the
country’s total
exports and
contributed
about 12%
to the
national gross
domestic
product,”
said a ZTA
spokesperson.
In 1998, about
92 000 hectares of land in
Zimbabwe was planted with
tobacco and annual sales
reached a record of 237
million kg in 2000. Land
reforms in the country saw
production drop to record
lows of 58.9 kilogrammes
in 2009, but since 2010,
the sector has started
recovering, spurred on by
deregulation.
Liz Whitehouse,
managing director at
research and market
analysis company, Africa
House – speaking at an
Ekurhuleni North Chamber
of Commerce & Industry
(ENCCI) networking
event recently – said
that Zimbabwe’s tobacco
exports were improving
“dramatically”, adding that
they were likely be back to
previous levels over the next
two years.
“One transporter reported
that their company had
handled 500 containers of
tobacco three years ago, 800
containers two years ago
and 1 200 containers last
year,” she said, pointing out
that this was borne out by
the statistics from 2010 to
the 2014/2015 season which
had seen a 165% increase in
tonnage production over the
five-year period.
“The main reason for
this is that when the
economy dollarised, it
tempted farmers back into
the market,” Whitehouse
commented. She added that
extensive use was also being
made of contract farming.
This pointed to the fact
that economic sectors in
Zimbabwe could still turn
around quickly, given the
right conditions, she added.
South African cigarette
manufacturer, Gold Leaf
Tobacco, has also recently
expressed interest in setting
up a manufacturing plant in
Zimbabwe, according to the
state-owned newspaper, The
Herald.
INSERT & CAPTION
When the economy
dollarised, it tempted
farmers back into the
market.
– Liz Whitehouse
CAPTION
Zimbabwean farmworker, Lovemore Dzapasi, harvests
tobacco on Lobernvale Farm near Harare.