Tobacco Sector Set for Major Lift as Mnangagwa Announces New Support Measures

Zimbabwe’s tobacco industry is poised for significant growth following President Emmerson Mnangagwa’s announcement of a new financing framework aimed at supporting smallholder farmers, particularly those operating under the A1 land reform scheme.

Speaking during the launch of the Productivity Booster Kits in Mazowe on Monday, the President said the initiative—initially designed to improve cereal output—would also be extended to benefit tobacco growers. The scheme is backed by a US$2 billion fund to be rolled out over the next decade.

President Mnangagwa confirmed that A1 tobacco farmers would now be eligible for domestic support under this scheme, with a focus on reducing reliance on external funding for tobacco production.

To facilitate the rollout, Technical Service Centres will be established in all ten provinces. These centres, managed by participating banks, will provide a suite of agricultural services, including land preparation, mechanisation, extension support, irrigation systems, post-harvest handling, and monitoring services.

“Smallholder tobacco farmers will now be included in this initiative to localise inputs and equipment procurement across the entire value chain,” said Mnangagwa. “This is a step towards empowering our farmers and strengthening national food and economic security.”

The 2025 tobacco marketing season brought in over US$1 billion, with farmers delivering more than 350 million kilograms of tobacco. However, analysts believe that the country could generate even more if local financing models replace foreign contractor dominance in the sector.

President Mnangagwa also noted that five local banks have pledged to inject additional working capital into agriculture, further anchoring the initiative.

With sustained support, A1 farmers are projected to play a key role in Zimbabwe’s economic growth. The government estimates that these farmers could produce over 10 million tonnes of cereal grain annually, contributing upwards of US$6.14 billion to the sector’s GDP and generating US$1.59 billion in household disposable income.

“Let us embrace this innovation and push for greater agricultural productivity. This is a call to all farmers—especially youth and women—to take the lead in transforming our nation,” Mnangagwa urged.

Amid mounting climate threats, including frequent droughts, the government has prioritised efforts to climate-proof agriculture, such as dam construction and expanding irrigation networks. These strategies align with the broader vision to ensure sustainable food security and economic stability in the face of global environmental challenges.