- TIMB reports a historic 299.1 million kilograms sold in the 2025 marketing season
- Tobacco has been a top revenue generator in Zimbabwe's economy for over a century
- Tobacco accounts for 12% of the nation’s export earnings, contributing US$1.3 billion in 2024
Harare-Tobacco Industry Marketing Board has reached a record 299.1 million kilograms as of day 71 of the 2025 marketing season, generating US$1,004,477,101 billion in revenue, according to the latest daily update.
With just 841,376 kilograms needed to hit the ambitious 300 million kilogram target for 2025, Zimbabwe stands on the brink of achieving its Tobacco Value Chain Transformation Plan (TVCTP).
‘’As of Day 71, a massive 299,158,624 kgs of tobacco have been sold and farmers have earned just over 1 billion USD.
‘’We’re now just 841,376 kgs away from reaching the legendary 300 million kg milestone, the heart of our Tobacco Value Chain Transformation Plan,’’ TIMB said.
In 2021, Zimbabwe launched the Tobacco Value Chain Transformation Plan (TVCTP) as part of the Agriculture and Food System Transformation Strategy (AFSTS), aiming to transform the tobacco industry into a US$5 billion powerhouse by 2025, with a long-term vision of reaching US$60 billion by 2028 through enhanced value addition.
The TVCTP focuses on increasing annual production to 300 million kilograms by improving yields from 2,300 kg/ha to 3,000 kg/ha, expanding irrigation, and reducing post-harvest losses.
It also seeks to localize 70% of production financing by 2025, with the Reserve Bank of Zimbabwe (RBZ) easing offshore borrowing restrictions to empower domestic banks.
Tobacco, long dubbed Zimbabwe’s “golden leaf” for its economic significance, has been in the top 3 of revenue generators of the country’s economy for over a century. Since commercial production began in the 1890s at Shawasha Mission, the crop has shaped Zimbabwe’s agrarian identity, earning its place as the country’s top foreign exchange earner.
In the late 1990s, Zimbabwe was a global tobacco powerhouse, renowned for its high-quality Virginia flue cured tobacco exported to over 60 countries.
However, the early 2000s brought severe challenges, the government’s fast-track land reform program, which redistributed land from white commercial farmers to Black smallholders, disrupted production, causing output to plummet from 237 million kilograms in 2000 to a mere 48 million in 2008.
Despite this setback, the industry staged a remarkable recovery, driven by small scale farmers and contract farming models.
In 2019, production reached 261 million kilograms, and in 2023, Zimbabwe set a new record with 296 million kilograms.
As of today, tobacco accounts for 12% of the nation’s export earnings, contributing US$1.3 billion in full year 2024.
However, farmers face hurdles due to the dual-currency payment system, where 70% of earnings are paid in USD and 30% in Zimbabwe Gold (ZWG) at an official exchange rate of ZWG 26/USD. The parallel market rate, at ZWG 36/USD, creates a 38% premium, eroding farmers’ purchasing power for inputs priced at market rates.
For example, a farmer receiving US$10 million equivalent in ZWG (ZWG 260 million) at the official rate loses significant value when buying inputs at the parallel rate, a fiscal distortion that could hinder reinvestment.
Despite this Zimbabwe remains the largest tobacco producer in Africa and number four globally.
Equity Axis News
