Zimbabwe: Farmers Hail Us$5bn Tobacco Value Chain Plan

Farmers have welcomed the approval of the Tobacco Value Chain Transformation Plan aimed at transforming the tobacco value chain into a US$5 billion industry by 2025 as a strategic way of creating opportunities that will benefit the whole value chain.

The move will not only improve livelihoods of farmers, but will also boost the economy and contribute immensely towards the attainment of Vision 2030.

The immediate objective is to increase tobacco production and productivity through increasing the yield per unit, increasing the area under crop and minimising losses.

The strategy was taken after a realisation that the country was getting maximum benefits from its tobacco crop in terms of value addition and beneficiation.

Cabinet this week approved the Tobacco Value Chain Transformation Plan as presented by Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister Anxious Masuka.

During a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said the Tobacco Value Chain Transformation plan was targeted at growing the industry to US$5 billion by 2025 through localisation of tobacco financing, increased production and productivity, value addition and beneficiation, and exports of cigarettes.

"The initiatives should contribute significantly to Gross Domestic Product, foreign currency generation and employment creation, thereby raising household incomes in pursuit of Vision 2030," she said.

"The strategic objectives of the plan are; to localise the funding of tobacco to complement external funders, to raise tobacco production and productivity from 262 million kilogrammes to 300 million kilogrammes by 2025 and to diversify and increase the production of alternative crops such as medicinal cannabis and increase their contribution to the farmers' incomes to 25 percent by 2025."

Minister Mutsvangwa said the plan was aimed at increasing the level of value addition and beneficiation of tobacco from two percent of total tobacco produced to 30 percent to increase exports of cigarettes.

The plan will also create an enabling environment that incentivises investors to set up shop in the country instead of exporting raw or semi-processed tobacco.

Zimbabwe Farmers Union director Mr Paul Zakariya applauded Government for the move which he said would empower farmers and grow the industry.

"This is another great move that will ensure that value addition and beneficiation can happen," he said. "Under the current financing system, about 97 percent of our tobacco is contracted. This means that very little value addition can be done locally.

"A reversal of this situation will create opportunities for the tobacco value chain to begin to yield meaningful returns to the economy."

Zimbabwe Commercial Farmers Union president Dr Shadreck Makombe said the plan was not only a game changer, but also an enabler.

"This US$5 billion which is being talked about will cause waves in agriculture," he said. "We have been producing for contractors, but this plan will empower farmers and enable them to go back to the field. They will be in a position to retool, to re-capacitate and afford improving the livelihoods.

"The plan will liberate most farmers as they will have a choice on what to do with their money."

Zimbabwe National Farmers Union vice president Mr Edward Dune said: "We are on the right track in terms of tobacco transformation policy, particularly in view of the fact that authorities have pronounced that there is need to start with a consultative approach with stakeholders who have vast experiences with a lot of other tobacco production and marketing systems".

Tobacco Association of Zimbabwe president, Mr George Seremwe, said it was good that Government was working towards localisation of tobacco funding.

"This is much appreciated and we are hoping that the implementers will realise the objectives," he said. "We are calling upon all stakeholders to play their part in support of the plan. We are positive we can do it and achieve the growth if each player plays a role."

Tobacco Industry and Marketing Board chief executive, Mr Meanwell Gudu, recently said TIMB was in the process of restructuring to ensure they have the capacity to roll out their plans to meet the set targets by year end 2025.

"Government has announced that the tobacco sector will be supported by a US$60 million facility to capacitate local tobacco industry in line with localisation of tobacco funding," he said.

Meanwhile, the Tobacco Research Board (TRB) is already conducting research on alternate crops such as Chia, Industrial Hemp and Sesame, as well as other types of tobacco such as Shisha, which is very popular in the Middle East. TRB chief executive, Dr Dahlia Garwe recently said the country had the capacity to produce 300 million kilogrammes of tobacco, but most farmers required help so they reduce post-harvest losses.

In Zimbabwe, nearly 100 000 farmers engage in tobacco production while close to one million people are directly dependent on the "golden leaf". Tobacco generates 30 percent of the country's foreign currency, bringing in over US$600 million.

This article originally appeared on The Herald

Photo: The Herald