Zimbabwe commends China’s role in driving record tobacco output
Source: Zimbabwe commends China’s role in driving record tobacco output – herald Nelson Gahadza, Zimpapers Business Hub China’s financial support and market have been key in driving the rapid growth of Zimbabwe’s tobacco sector, which has broken production records in recent years and is now moving into value addition and beneficiation, Finance, Economic Development and […]
China’s financial support and market have been key in driving the rapid growth of Zimbabwe’s tobacco sector, which has broken production records in recent years and is now moving into value addition and beneficiation, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said.
He said this while responding to questions during a recent signing ceremony for Letters of Exchange on the China-Aid Upgrading and Maintenance of Irrigation Schemes with the Chinese Ambassador to Zimbabwe, Mr Zhou Ding.
Prof Ncube said Zimbabwe produced about 350 million kilogrammes of tobacco last year, the highest output ever recorded.
On the export front, Zimbabwe earned US$1,3 billion last year from tobacco shipments, the country’s second-largest export earner after gold.
Chinese Ambassador to Zimbabwe Mr Zhou Ding
The Treasury chief stated that the outstanding performance was driven by small- to medium-scale farmers supported through Chinese-backed financing arrangements.
“China has been a very important partner to Zimbabwe on the regeneration of the tobacco sector to a point where the sector has exceeded all expectations. Last year, we produced something like 350 million kilograms of tobacco and this is the highest production ever in the history of Zimbabwe,” he said.
Prof Ncube attributed the growth to credit facilities provided to Zimbabwe farmers through China Tobacco, which have enabled farmers to access inputs and increase production.
“The farmers have been able to benefit from the credit facilities provided through China Tobacco, and it has been a remarkable success,” he said.
Beyond financing, he said China had played a critical role by providing a reliable export market for Zimbabwean tobacco, creating an integrated value chain from production to off-take.
Tobacco
“China has been critical in the tobacco sector, but also doesn’t just stop there, providing credit, it also provides the market, the off-take side,” Prof Ncube said.
He added that the arrangement has helped Zimbabwe maintain its position among the world’s top four tobacco producers, alongside China, Brazil and the United States.
Prof Ncube said early indications from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, point to even higher output this year.
“From the figures I am hearing from the Ministry of Agriculture for this year, the 350 million kilograms will be exceeded and we are closer to 400 million, if not more,” he said.
The minister said the relationship with China was now extending into beneficiation, with joint ventures emerging to process tobacco locally and manufacture finished products.
“We are beginning to see a joint venture, again, between Zimbabwe and China in processing the tobacco, producing cigarettes.
“So that beneficiation is most welcome, because we want to also develop the tobacco value chain,” Prof Ncube added.
Turning to irrigation, he said Chinese support would be channelled towards upgrading irrigation schemes across the country to climate-proof agriculture and ensure food security.
“This is a resource that could be used for upgrading various irrigation schemes and this is critical for climate-proofing Zimbabwe’s agriculture,” he said.
He noted that while Zimbabwe had invested heavily in dam construction, the priority was now to convey water to productive land.
Irrigation infrastructure, he said, would also underpin broader rural industrialisation.
The minister welcomed China’s zero-tariff access offer to African exports, describing it as a potential catalyst for Zimbabwe’s export growth, industrialisation and technology transfer.
“They have offered Africa a zero-tariff trade deal and Zimbabwe had already been negotiating access for specific products such as blueberries and other horticultural exports.
“But we hope then this will also accelerate because of this new offer from China of a zero-tariff arrangement, it’s a big market of over one billion people,” he said.
Mr Zhou said Zimbabwe’s tobacco industry sustained livelihoods for more than one million people, with trade linked to China accounting for a significant share of employment in the sector.
He said China Tobacco had played a key role since land reform in supporting Zimbabwe’s economic and social progress and pledged continued support.
