The ManicaPost
Samuel Kadungure
Senior Reporter
THE number of contractors licenced to buy tobacco in Manicaland has been reduced from the previous six to one that will be operating in Rusape as the majority allegedly failed to meet a number of conditions set by the regulator.
This means thousands of tobacco growers whose crop was financed by the unlicenced contractors will have to take their golden leaf to the contractors’ nearest floors outside Manicaland.
This sadly increases transport costs and travelling risks, as well as fuel the temptation of side-marketing.
The 2023 marketing season officially opened on Wednesday at Tobacco Sales Floor (TSL), with growers anticipating decent returns for their investments.
Vice President and Minister of Health and Child Care, Dr Constantino Chiwenga officiated at the occasion attended by various stakeholders from the tobacco value chain.
Tobacco Industry and Marketing Board (TIMB) chairman, Mr Patrick Devenish said two auction floors — Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floor have been licenced together with 25 “A” class buyers and 32 contracting companies.
In Manicaland, tobacco sales will be conducted at Sub-Sahara Floors adjacent Farm & City in Rusape’s industrial area.
Last season, Rusape had one auction floor — Boka Tobacco Auction Floors and five contract floors — Voedsel, Agritrade, Victory, Munakiri and Sub Sahara.
This season, Munakiri, Bindura, Agritrade, Victory and Veodsel had also expressed interest to operate in the town, but only Sub Sahara has so far been licenced.
A number of factors were considered, but chief among them is that a contractor should have sponsored 1000 hectares of tobacco in the region.
Some of the contractors have not paid farmers for the tobacco delivered last season, while reports of collusion by merchants and manoeuvres by middlemen to re-handle tobacco bought cheaply from farmers were also raised with TIMB.
TIMB has registered 148 527 growers, with 117 928 hectares of tobacco this season, compared to 110 155 hectares of tobacco by 122 841 growers last year.
“We have around 3 283 new growers and this proves that as an industry we must be doing something right and that is increasing the appetite to grow tobacco.
“Our crop assessment exercise reveals that we can produce 230 million kilogrammes of the golden leaf this season,” said Mr Devenish.
He said TIMB and the Reserve Bank of Zimbabwe have jointly put in place improved payment measures to ensure tobacco growers get full value for their crop and are simultaneously paid within 48 hours.
Mr Devenish said contractors have signed the Contractors’ Compliance Administration Framework compelling them to pay growers within 48 hours of sales completion.
“Failure to do so will be met by stiff penalties, suspension, or cancellation of operating licenses.
“Therefore we encourage tobacco growers to notify TIMB if they are not paid within 48 hours.We are aware that some tobacco growers have not been paid since last season. Agreements were made with the responsible tobacco companies and plans are in place to ensure growers are paid in full,” he said.
VP Chiwenga said agriculture production, productivity and profitability accelerated in line with the National Development Strategy (NDS1) since the sector has immense potential to anchor the local economy.
He also said Government is upbeat of the role of tobacco in uplifting livelihoods in line with President Mnangagwa’s vision of an empowered and prosperous upper middle-income society by 2030.
Agriculture is at the epicentre of Vision 2030.
“To achieve an upper middle income economy status, we must transform tobacco production from surplus oriented farming to Small and Medium Enterprises (SMEs),” he said.
VP Chiwenga said through the Tobacco Value Chain Transformation Plan, the industry can be transformed into a USD$5 billion sector by 2025.
“There is so much potential in the tobacco industry. This sector alone has the potential to anchor the Zimbabwean economy and it possesses huge opportunities for growth. Agriculture contributes to export earnings and the flagship is tobacco.
“Tobacco production in the country has rebounded significantly since the land reform programme.
“Growers look forward to getting a decent return for their effort. Contractors look forward to recovering their loans in full and making a decent profit,” he said.
The Vice President added that farming should be taken as a business and means to an end.
“We applaud those who have successful tobacco farming enterprises and encourage the rest of us to develop proper business models for our tobacco farming. As tobacco stakeholders, you are part of this great building project for our great nation,” he said.
He said efforts must be made to increase value addition of tobacco from the current two percent to over 30 percent.
TIMB has since licensed Cavendish Lloyd to produce and process Shisha tobacco, while Cutrag is in the process of constructing a huge processing plant.
