Zimbabwe’s Tobacco Industry Hits US$1.13 Billion i...

Zimbabwe’s Tobacco Industry Hits US$1.13 Billion in 2025 – A Look at Growth & Export Impact

ZimNow Reporter

Zimbabwe’s tobacco sector continues to be a powerhouse of economic growth, with farmers earning US$1.13 billion from 340.27 million kilograms sold as of July 2025. This marks another strong year for the industry, reinforcing its position as one of the country’s top foreign currency earners.

2025 Performance: Prices, Volume & Export Trends as of July 2025

Total sales: 340.27 million kg, surpassing 2024’s 240 million kg

Revenue generated: US$1.13 billion at an average price of US$3.34/kg

Export contribution: Tobacco accounts for over US$900 million annually in exports, with China as the largest buyer, taking over US$400 million worth

Value addition growth: Local cigarette production has risen from 2% (2021) to 10% (2025), with potential to manufacture 17 billion sticks annually (currently at 4 billion).

Year-on-Year Comparison: How 2025 Stacks Up

The 2025 season has outperformed previous years in volume, though prices are lower compared to 2024’s US$3.43/kg peak.

Tobacco’s Role in Zimbabwe’s Economy

Tobacco contributes over 30% of total agricultural exports, and there are over 140,000 registered growers, 95% under contract farming. Seven cigarette manufacturers are in operation, with three producing 90% of annual output.

Challenges & Future Opportunities

While Zimbabwe remains Africa’s top raw tobacco exporter, it lags in finished products. The Tobacco Value Chain Transformation Plan (2021) aims to boost value addition to 30% by 2025, with initiatives like the Tobacco Special Economic Zone attracting investment. China, the UAE, and EU markets remain critical for growth.