Zimbabwe exports US$146m tobacco in three weeks

Zimbabwe has in just three weeks into 2024 exported about 22 million kilogrammes (kg) of tobacco worth US$146 million, according to the latest figures from the Tobacco Industry and Marketing Board (TIMB).

During the same period last year, 8,7 million kilogrammes of tobacco, worth US$36 million had been sold to overseas markets.

About 90 percent of the tobacco was exported to the Far East, mainly to China at an average price of US$7,49 per kg up from US$6,75 during the same period last year, the TIMB said in its latest bulletin.

Exports to the African markets totalled US$5 million (2,3 million kg) from US$6,5 million in the same period last year.

There is a sharp fall in shipments to European Union (EU), Middle East and improved uptake in Europe and Americas.

EU tobacco volumes dropped to 923 000kg, down from 2,1 million kilogrammes last year.

Export receipts from the EU also declined to US$1,2 million, from US$7,4 million a year ago. The Middle East saw exports of 806 000kg of tobacco, worth US$2,6 million.

In the same period last year, about 1,5 million kilogrammes worth US$6,6 million had been exported to the region.

Money – Image taken from Pixabay

Export volumes to Europe soared to 789 000kg, worth US$3,5 million, compared to just 218 000kg worth US$1,44 million in the same period last year.

American imports from Zimbabwe more than doubled, surging to 516 000kg, worth US$2,1 million. This marks a significant jump from just 204 000kg worth US$670 000 imported during the same period last year.

Tobacco is the country’s largest foreign currency earner after gold. A staggering 300 million kilogrammes of tobacco were produced last year, exceeding the target of 230 million kilogrammes and the previous record output of 253 million kilogrammes in 2018.

Under the Tobacco Value Chain Transformation Plan-approved by the Cabinet in 2021 the Government has been targeting to increase the output to 300 million kilogrammes by 2025.

The plan also seeks to raise localisation of tobacco funding to 70 percent, increase the level of value addition and boost cigarette production to 30 percent from two percent.

Last season, the number of tobacco farmers also saw a significant rise, reaching 148 527 compared to 123 000 in 2022.

This increase is attributed to factors like improved support for small-scale farmers, higher tobacco prices and favourable weather conditions. – Business Weekly.