Source: Zim sees jump in tobacco exports to Europe, Africa – herald
Martin Kadzere
A significant surge in demand for Zimbabwe’s tobacco from Europe and Africa helped offset a decline in the major Far Eastern markets, with exports reaching US$1,36 billion by mid-December 2025, compared to the same period in 2024, according to the latest official statistics.While revenue from the Far East, Zimbabwe’s largest buyer, dropped by 14 percent, the “golden leaf” maintained its status as the country’s top agricultural earner because high-value orders from the European union (EU) and steady growth across the African continent filled the gap, according to latest figures the Tobacco Industry and Marketing Board (TIMB), the regulator.
This allowed the industry to finish the year with only a marginal 0,7 percent dip in total value despite the cooling of its biggest traditional customer.
The European union emerged as the standout growth market this season, with export values skyrocketing by 64,5 percent. Total earnings from the bloc rose to US$169,6 million from US$103,1 million.
The surge reflects a growing preference for Zimbabwe’s high-quality, flue-cured Virginia leaf among continental manufacturers.
Conversely, the Far East, dominated by China, remains Zimbabwe’s largest customer with revenue falling from US$953,2 million to US$819,3 million.
Despite the 14 percent drop, the Far East still accounts for 60 percent of the total tobacco export value.
Overall average prices were up US$5,83 per kg from US$5,74 during the same period, the figures show.
Tobacco remains Zimbabwe’s largest foreign currency earner after gold; however, concerns persist regarding its funding model.
Because the crop is primarily financed through offshore loans, the country is often left with minimal net earnings once those foreign debts are settled.
The loans are largely provided by foreign-owned firms and global tobacco giants, which also sub-contract local firms, also known as “surrogates,” to manage parallel contract schemes on their behalf.
Critics have persistently condemned the funding model, accusing contractors of inflating input costs and making excessive deductions from farmers’ earnings when they deliver their crop.
However, some industry players argue this funding model remains the only viable option for now, given local banks lack the balance sheet capacity to support the capital requirements of tobacco farming.
Looking ahead to 2026, Zimbabwe has set an ambitious production target of 400 million kg of tobacco, aiming to shatter the record of 353 million kg achieved during the 2025 season.
However, early indicators are depressing, as official data shows a 22 percent decline in the area planted.
By mid-December, hectarage planted was down to 93,281 from 113,536.
The post Zim sees jump in tobacco exports to Europe, Africa appeared first on Zimbabwe Situation.