Zimbabwe’s Tobacco Industry Gets a $102 Million Boost

President Emmerson Mnangagwa is set to commission a state-of-the-art tobacco processing plant at Cut Rag Processors (Private) Limited in Harare today, marking a significant milestone in Zimbabwe’s drive to promote value addition in the tobacco industry.

The $102 million facility, developed by Cut-Right Processors (CRP), features dual production lines, advanced electronic add-back systems, and a fully equipped quality control laboratory. This investment underscores the government’s broader industrialisation agenda and its focus on export-led growth.

The plant has the capacity to process three million kilogrammes of cut rag for export monthly and produce 60,000 cigarette master cases, positioning Zimbabwe as a leading player in regional tobacco processing. Speaking on the development, Simon Rudland, the owner of CRP, said the facility will create new opportunities for small- and large-scale growers, strengthen Zimbabwe’s standing as one of the world’s foremost tobacco producers, and contribute to the country’s economic transformation agenda.

Zimbabwe’s tobacco sector has been growing steadily, with farmers producing 353 million kilogrammes of the crop in the previous marketing season, generating over $1.1 billion in export earnings. The new plant aligns with the government’s Tobacco Value Chain Transformation Plan, which aims to increase value-added tobacco to 25% of output.

Currently, Zimbabwe exports about 98% of its tobacco in raw form, earning minimal value from the crop. However, with the new plant, the country is expected to increase its local value addition, currently at 10.5%, towards the government’s target of 30% by 2025.

The commissioning of this plant demonstrates the government’s commitment to promoting value addition and industrialisation in Zimbabwe’s key agricultural sectors. The move is expected to boost tobacco export earnings, create employment opportunities, and contribute to the country’s economic growth.

The facility will also feature both Primary Manufacturing Department (PMD) and Secondary Manufacturing Department (SMD) processing lines, and is expected to enhance the country’s cigarette manufacturing capacity. With this development, Zimbabwe is set to strengthen its position as a leading tobacco producer and exporter in the region.