Tobacco purchases set to increase in 2024

Oscar J Jeke

This year’s tobacco purchases are set for a significant increase that will breach the US$81 million from last year’s local financing of US$73.2 million, a Cabinet minister has said.

Addressing journalists at a post-Cabinet briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister, Dr. Jenfan Muswere said that the locally produced tobacco has increased value over the years owing to a number of factors, including prospects of increasing value addition and beneficiation through tobacco cut rag and cigarette production.

“Cabinet would like to report that the value of local tobacco purchased has increased from US$650 million in 2022 to US$897 million in 2023. Out of this amount, tobacco purchases using local financing were US$61.4 million in 2022 and US$73.2 million in 2023. For the 2024 tobacco marketing season, the recorded intentions for local financing amount to US$81 million.

“The nation is informed that there are opportunities to increase the level of value addition and beneficiation of tobacco into cut rag and production cigarettes, from 2% of total tobacco produced to 30%,” Dr. Muswere said.

The minister also noted that cigarette production is expected to rise by 50% owing to construction of a new plant that will produce close to 1.6 billion sticks per annum, with the seven operational manufacturers already producing at least five billion cigarettes per year.

“Currently, seven cigarette manufacturers operate in Zimbabwe, with a combined production capacity of around five billion cigarette sticks per annum. An additional cigarette manufacturing plant is under construction, with a current production of 1.6 billion sticks per year. The plant will increase capacity by 50% in the first half of 2024,” the Minister added.