Next week, Zimbabwe Newspapers (Zimpapers) Group’s business publication, Business Weekly, will collaborate with the Tobacco Industry and Marketing Board (TIMB) to host a high-level tobacco conference. This event aims to address critical issues affecting the tobacco industry and explore initiatives to drive the country’s tobacco industry transformation strategy.
Scheduled for June 7, 2024, at the Rainbow Towers in Harare, the conference will gather key industry stakeholders, including farmers, financial institutions, and senior government officials. The agenda will cover pressing issues such as alternative, locally-driven financing models and challenges associated with the current indigenisation policy.
Industry experts highlight that Zimbabwe’s heavy reliance on offshore funding results in minimal value retention from tobacco exports. Additionally, the prevalent contract farming system burdens farmers with debt and limits financial benefits for the country. The conference seeks to foster collaboration between the government, financial institutions, and industry stakeholders to develop a roadmap for a more sustainable and profitable tobacco industry.
Despite being Zimbabwe’s second-largest foreign currency earner, concerns persist about the nation’s share of tobacco export proceeds and the actual level of Indigenous participation. Although land ownership by black Zimbabweans suggests greater involvement, the value chain is still dominated by multinationals. Black farmers often occupy peripheral roles with limited control, and the independence of indigenous merchants is questionable, as they may be financially supported by multinationals, hindering true economic empowerment.
Black Zimbabwean companies also face challenges breaking into new markets, often acting as surrogates for multinational corporations. This dependence restricts genuine economic empowerment for black Zimbabweans.
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Business Weekly editor, Herbet Zharare, expressed hopes that the conference would highlight the drawbacks of the current financing model and foster an understanding of alternative options. “We aim to identify key players and their roles in implementing a new model, ultimately leading to collaborative action plans for a more sustainable tobacco financing system in Zimbabwe. The conference presents a crucial opportunity to address foreign financial dependence and ensure true empowerment of black Zimbabweans within the tobacco industry,” he said.
The conference will also focus on strategies to maximize Zimbabwe’s value capture from tobacco. Discussions will include attracting domestic and foreign investment to build processing facilities and infrastructure for beneficiation. Additionally, critical Environmental, Social, and Governance (ESG) considerations within the tobacco sector will be addressed, such as navigating insurance challenges due to climate change and eradicating child labor practices.
The conference features a prestigious lineup of speakers, including Professor Jiri, Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development; Emmanuel Matsvaire, acting CEO of the TIMB; Paul Zakariya, executive director of the Zimbabwe Farmers Union; representatives from the Ministry of Finance, Economic Development and Investment Promotion; Willing Dizawatiza from the Bankers Association of Zimbabwe; along with leading bankers, insurance companies, tobacco merchants, cigarette producers, and prominent economists.
