Dr John Mangudya

Oliver Kazunga, Senior Business Reporter
THE area planted under the tobacco crop in the 2017/18 cropping season has declined by 5.5 percent to 104 397 hectares from 110 518ha during the same period last year, official figures show.

The decline in area planted under tobacco is largely attributed to the late onset of rains in the 2017/18 summer cropping season as most farmers in Zimbabwe depend on the rains.

Of the 104 397ha area planted, 15 779ha were for the irrigated crop while 88 618ha were for the rain-fed crop. The Tobacco Industry and Marketing Board (TIMB) also indicated that during the same period last year, 16 564ha were under irrigation while 93 929ha were for the rain-fed tobacco. The statistics further show that despite the decline in the hectarage planted under tobacco, the number of registered new growers have risen by 126 percent to 33 574.

In Zimbabwe, the golden leaf is mainly grown in Mashonaland West, Mashonaland Central, Manicaland, Mashonaland East, Masvingo, Matabeleland South and the Midlands.

Tobacco is one of Zimbabwe major foreign currency earners.

In 2017, Zimbabwe generated $903 million from tobacco exports and the Government has over the years been supportive of the tobacco sector.

In his 2018 monetary policy statement, which he presented recently, the Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya said:

“In order to enhance foreign currency inflows from tobacco . . .  , the tobacco input finance facility has been increased from $28 million disbursed in 2017 to $70 million.”

The RBZ boss said financing of tobacco and other exportable products using Real Time Gross Settlement (RTGS) funds at banks was beneficial for generating foreign exchange for the country.

“Further, and in line with the tobacco finance order, deserving tobacco merchants shall be granted authority by the Central Bank to use RTGS money to purchase tobacco from the auction floors,” said Dr Mangudya, adding that such a dispensation shall also apply to deserving cotton merchants.

@okazunga