The Prague Post - Zimbabwe tobacco hits new highs under smallholder contracts

EUR -
AED 4.249992
AFN 72.906553
ALL 95.274038
AMD 426.307558
ANG 2.072004
AOA 1062.352843
ARS 1673.798689
AUD 1.638998
AWG 2.083045
AZN 1.97113
BAM 1.956277
BBD 2.329988
BDT 142.205879
BGN 1.93251
BHD 0.43631
BIF 3452.571088
BMD 1.157247
BND 1.487375
BOB 7.994017
BRL 5.976833
BSD 1.156792
BTN 110.310832
BWP 15.647948
BYN 3.195206
BYR 22682.04071
BZD 2.326687
CAD 1.610911
CDF 2644.88792
CHF 0.920515
CLF 0.027074
CLP 1065.55856
CNY 7.850418
CNH 7.837572
COP 4156.321946
CRC 533.834687
CUC 1.157247
CUP 30.667045
CVE 110.291874
CZK 24.167425
DJF 206.001975
DKK 7.474242
DOP 67.376999
DZD 154.544512
EGP 59.899083
ERN 17.358705
ETB 186.507156
FJD 2.562087
FKP 0.866996
GBP 0.86337
GEL 3.07859
GGP 0.866996
GHS 13.656446
GIP 0.866996
GMD 83.901276
GNF 10133.55671
GTQ 8.818225
GYD 242.031065
HKD 9.068824
HNL 30.929592
HRK 7.534605
HTG 151.258163
HUF 355.333865
IDR 20779.526683
ILS 3.409354
IMP 0.866996
INR 110.249357
IQD 1515.482358
IRR 1591272.452794
ISK 143.602865
JEP 0.866996
JMD 182.674511
JOD 0.820463
JPY 185.332523
KES 149.724342
KGS 101.200899
KHR 4647.172488
KMF 494.144477
KPW 1041.354765
KRW 1765.577183
KWD 0.357763
KYD 0.964043
KZT 564.902526
LAK 25473.426981
LBP 103595.237221
LKR 390.438508
LRD 211.123267
LSL 19.030501
LTL 3.417049
LVL 0.700007
LYD 7.372796
MAD 10.692405
MDL 20.117076
MGA 4853.224475
MKD 61.643362
MMK 2429.261797
MNT 4141.414254
MOP 9.337456
MRU 46.192654
MUR 55.409422
MVR 17.87952
MWK 2006.006118
MXN 20.115501
MYR 4.699119
MZN 73.959132
NAD 19.027294
NGN 1574.689292
NIO 42.570741
NOK 10.93662
NPR 176.497531
NZD 1.981112
OMR 0.444975
PAB 1.156892
PEN 4.016813
PGK 5.063234
PHP 71.153356
PKR 321.920221
PLN 4.237549
PYG 7124.597027
QAR 4.217428
RON 5.237932
RSD 117.374944
RUB 83.38654
RWF 1693.92738
SAR 4.344766
SBD 9.314198
SCR 15.730347
SDG 694.917525
SEK 10.884022
SGD 1.487317
SHP 0.864002
SLE 28.47206
SLL 24266.892878
SOS 661.166813
SRD 43.2226
STD 23952.67591
STN 24.506183
SVC 10.122554
SYP 127.912936
SZL 19.0258
THB 37.997623
TJS 10.793323
TMT 4.050364
TND 3.400329
TOP 2.786373
TRY 53.36943
TTD 7.84698
TWD 36.5646
TZS 3014.631898
UAH 51.968363
UGX 4364.101069
USD 1.157247
UYU 46.831816
UZS 13908.509136
VES 651.049888
VND 30470.312852
VUV 138.041786
WST 3.178208
XAF 656.122541
XAG 0.01687
XAU 0.000266
XCD 3.127517
XCG 2.084926
XDR 0.8198
XOF 656.11687
XPF 119.331742
YER 276.148106
ZAR 19.037234
ZMK 10416.610454
ZMW 20.546184
ZWL 372.633054
  • JRI

    0.0720

    12.532

    +0.57%

  • BCC

    2.5850

    70.555

    +3.66%

  • RIO

    -0.7500

    100.18

    -0.75%

  • BCE

    0.4150

    24.595

    +1.69%

  • NGG

    0.5350

    80.705

    +0.66%

  • BTI

    0.2850

    59.975

    +0.48%

  • CMSC

    -0.0400

    22.32

    -0.18%

  • GSK

    0.2450

    50.885

    +0.48%

  • AZN

    0.4700

    182.02

    +0.26%

  • RBGPF

    1.4900

    61.5

    +2.42%

  • RYCEF

    0.0800

    16.6

    +0.48%

  • BP

    -1.3350

    42.385

    -3.15%

  • VOD

    -0.1350

    14.675

    -0.92%

  • RELX

    0.2950

    34.815

    +0.85%

  • CMSD

    -0.1150

    22.295

    -0.52%

Zimbabwe tobacco hits new highs under smallholder contracts
Zimbabwe tobacco hits new highs under smallholder contracts / Photo: Zinyange Auntony - AFP

Zimbabwe tobacco hits new highs under smallholder contracts

Rows of green tobacco plants stretched towards the bush in a vast field of a crop that has rebounded to record levels in Zimbabwe, driven largely by smallholders contracted to Chinese firms.

Text size:

A few dozen aspiring tobacco farmers inspected the broad leaves on a field day of training in the cultivation of the plant, of which Zimbabwe is Africa's leading producer.

Among them was Read Sola, 64, one of more than 300 farmers now growing tobacco in the southern Matabeleland region, which historically is not tobacco country.

"Maize was not profitable as it was prone to disease," Sola told AFP, hoping for a "rewarding harvest" in his new venture.

The large man in blue overalls is contracted to the UAE-based Atlas Agri, one of the biggest of 44 registered merchants and contractors in the southern African country.

Around 95 percent of Zimbabwe's more than 127,000 registered tobacco farmers are contracted smallholders, who account for 85 percent of all output, the tobacco board said.

Most are contracted to Chinese firms in a model that has pushed Zimbabwe's tobacco crop to new highs, despite concerns about debt and deforestation.

From 306,000 tonnes in 2024, production soared to 355,000 tonnes in 2025, the board said.

A harvest of over 360,000 tonnes is expected this year after a 15-percent increase in the planted area, an official told AFP.

It is a dramatic turnaround for a sector that crashed to 48,000 tonnes in 2008 in the wake of a botched government land reform programme that led to the seizure of hundreds of commercial farms.

- Debt trap -

Under the contract model, buyers advance seeds, fertiliser and other inputs on credit and agree to buy the harvest at a set price.

Farmer Davis Tembo, 50, told AFP his contract with a Chinese firm brought mixed fortunes -- income to buy a bigger plot but a grinding dependence on his contractor.

He grew tobacco independently for four years but signed on in 2015 because he lacked the funds to plant a new crop.

While his contractor ensures that inputs arrive on time, unpredictable weather means he cannot always produce an expected yield, leaving him in the red.

"Farmers are compelled to return to the field and stick with contract farming, hoping that they will at some point break even," Tembo told AFP.

Since most smallholders do not hold titles to their land, they cannot access bank finance, which also carries interest rates at more than double the 15 percent offered by contractors, according to industry insiders.

Despite the lures, profitability is elusive, said George Seremwe, president of the Zimbabwe Tobacco Growers Association.

"You have insurance charges, floor charges, and various other levies that make production unsustainable," he told AFP, repeating allegations that contractors collude to keep prices low and "shortchange" producers.

"Farmers are rendered mere labourers of the contracting companies and a number of them become trapped in debt," he said.

- Shifting to Africa -

As in Zimbabwe's lucrative mining sector, Chinese companies dominate tobacco production, drawing criticism of a near-monopoly that contributes to price stagnation.

Chinese firms take 60 percent by value of the national output, which amounts to 30-40 percent of volume, the tobacco board's chief executive Emmanuel Matsvaire told AFP.

They will purchase about 10,000 tonnes less this season, he said, acknowledging the need to "reduce the risk of overexposure to the Chinese market".

Zimbabwe also exports to around 60 other markets, Matsvaire said, confirming plans for US tobacco giant Philip Morris International to resume activities in the country after several decades.

Critics like the World Health Organization (WHO) say tobacco companies are shifting cultivation to Africa, taking arable land away from food production and contributing to deforestation.

From 2005 to 2020, the area under tobacco decreased globally by 15.8 percent but increased by 19.8 percent in Africa, said the WHO, which campaigns for tobacco-free farms.

Its figures for 2020 show Zimbabwe was Africa's top tobacco leaf grower, making up a third of the continent's production.

The country aims to increase output in the coming years and triple domestic value addition of tobacco, such as cigarette production, which currently stands at 11 percent, Finance Minister Mthuli Ncube said at the launch in March of the new marketing season.

B.Svoboda--TPP