-
Joint venture was signed by TIMB, ZSE, VIFEX
-
It is expected to ease economic challenges in tobacco industry
-
The MOU is a second straight one for VIFEX, after signing one with DGCE yesterday.
Harare - Given the economic challenges facing the Zimbabwean economy due to negative effects of COVID-19 and foreign currency shortages, sore regulator and marketer of tobacco, Tobacco Industries Marketing Board (TIMB), Zimbabwe Stock Exchange (ZSE) and its subsidiary, Victoria Falls Stock Exchange (VFEX) have signed a memorandum of understanding (MOU) in a bid to boost tobacco productivity.
In a press statement released by ZSE today, the signed MOU will trigger the trio to cooperate in sourcing funds for tobacco farmers, merchants, the compilation and distribution of tobacco production and market data and the establishment of a tobacco derivatives market.
“Given the funding and marketing challenges faced by small scale Tobacco farmers, funding challenges faces by local Tobacco merchants and the limited hedging instruments for farmers in terms of price and weather risk, the TIMB, ZSE, VFEX are pleased to announce the signing of the Memorandum of Understanding which forms a basis of cooperation…”, ZSE said in a presser.
According to the press statement, the full implementation of the MOU is expected to result in increased productivity, and smoother cash flows for small scale farmers and improve capacity for local Tobacco merchants.
Meanwhile, the MOU is a second straight one for VIFEX, after it signed another yesterday with the Dubai Gold and Commodities Exchange (DGCE) with the ultimate aim of establishing an international commodities exchange in Zimbabwe.
By the sixth of September this year, a total mass of 209,357,856 kilograms of tobacco has been sold at an average price of US$2.80 per kg.
Meanwhile, government has approved the Tobacco Value Chain Transformation Plan which is targeting to transform the sector into a US$5 billion industry by 2025 through the localisation of tobacco financing, increased production and productivity, value addition and beneficiation, and exports of cigarettes.
In preparation for the next tobacco season, Information Publicity and Broadcasting Services Minister Monica Mutsvangwa, said about 67025 farmers have registered for the 2021/22 tobacco season, compared to the 57252 farmers who had registered at the same time last year, thus reflecting a 17% increase.
