Zimbabwe’s tobacco sales have reached a record high of 237.1 million kg with a week to go before the selling season ends, official data showed on Friday, raising hopes its second biggest export could help ease the country’s severe dollar shortage.
Growing demand from China, the world’s biggest smoking nation, and funding from private tobacco companies have boosted output, which plunged to its lowest in 2008.
Tobacco accounted for a quarter of Zimbabwe’s $3.8 billion in total export earnings in 2017, behind gold.
The sector was previously dominated by white farmers until they were forcibly evicted in a controversial government land seizure drive in 2000. Now tens of thousands of black farmers who benefited from the land reforms are growing tobacco.
Tobacco Industry and Marketing Board (TIMB) data showed that sales of the crop at local auctions had eclipsed the previous record of 236.9 million kg in 2000. Back then, 4,000 white farmers produced 85 percent of the crop.
This year 111,000 farmers grew tobacco, up from 81,000 last year, TIMB figures showed.
TIMB spokesman Isheunesu Moyo said despite a mid-season drought in January, farmers exceeded expectation and “this ranks as the best year in terms of production.”
Zimbabwe is suffering from shortages of U.S. dollars, a big obstacle to businesses importing goods they need or repatriating the profits they hope to make, while portfolio investors can’t get their money out of the stock market.
After raging hyperinflation, Zimbabwe abandoned its currency in 2009 in favor of the dollar, but a widening trade deficit and lack of foreign investment have led to dollar shortages.
The nation of 13 million people will on July 30 hold its first presidential and parliamentary vote since Robert Mugabe was forced to resign after a coup amid expectation that this could help unlock foreign funding if certified free and fair by the international community.
“The season went well because tobacco fetched good prices, so we go into the elections feeling happy. But the challenge was getting money from the banks,” small-scale farmer Terrence Sibindi told Reuters at a local auction.
Tobacco has become the biggest success story of the government’s land reforms, which Mugabe defended as necessary to correct skewed colonial land ownership.
Latest Stories
-
Bono COCOBOD seizes trucks loaded with bags of cocoa, lumber
4 minutes -
Anti-LGBTQ Bill: Mahama suggests it must be Government-sponsored
5 minutes -
Mahama is committed to working with 60 ministers – Edudzi Tamakloe
10 minutes -
Mahama, Opoku-Agyemang hold crucial meeting with IMF
12 minutes -
Mahama reiterates commitment to permanent peace in Bawku
26 minutes -
ORAL is not an institution; it’s a team – Domelevo defends role in anti-corruption efforts
2 hours -
‘Nothing off the table’ in Canada’s response to US tariff threat
2 hours -
New suspected Marburg outbreak in Tanzania kills eight – WHO
2 hours -
Kenyan minister alleges intelligence agency behind his son’s abduction
3 hours -
No more miners trapped underground in South Africa, volunteers say
3 hours -
US issues fresh round of sanctions against Russia ahead of Trump return to White House
3 hours -
Death toll from South African mine siege rises to 78, rescued now at 166
3 hours -
Biden takes aim at ‘tech industrial complex’ in farewell speech
3 hours -
Biden says Gaza deal based on his framework while Trump claims credit
4 hours -
Ex-convict, 22, jailed in Tarkwa for threatening to stab student
5 hours