OPINION| Counting the Cost of a US$1bn Tobacco Windfall

By Newton Mambande

HARARE – ZIMBABWE’S tobacco farmers are poised to reap a US$1 billion bonanza in the 2025/26 season. However, the path to prosperity is fraught with challenges that could snag the benefits, leaving farmers vulnerable to exploitation.

The golden leaf has the potential to bring significant gains, but only if farmers and stakeholders tackle pressing issues head-on. The presence of commercial sex workers and con men in tobacco-growing areas is a menace that quickly drains farmers’ hard-earned profits. These vices not only undermine the moral fabric of communities but also divert resources away from critical farming activities.

Furthermore, side marketing and unfair pricing practices continue to plague the tobacco industry, with farmers often bearing the brunt. To mitigate this, there is a pressing need for transparent and fair deals that reflect the true value of farmers’ produce. The government and industry stakeholders must work together to ensure that farmers are protected from exploitative practices.

Another challenge facing farmers is the high interest rates on loans, which often make it difficult for them to access credit. The government must intervene to cap interest rates and ease access to credit facilities, enabling farmers to invest in their farms and boost productivity. Additionally, life assurance and insurance companies must review their premium structures to ensure they are fair and reasonable, rather than exorbitant.

To maximize the benefits from the tobacco season, farmers must unite to demand better deals. One way to achieve this is through contract farming, which allows farmers to lock in prices and secure markets. By forming associations, farmers can also sell their produce in bulk, boosting their bargaining power and securing better prices. Financial literacy programs can also empower farmers with the knowledge to navigate the complex world of agribusiness, making informed decisions on deals and costs.

If harnessed effectively, the US$1 billion windfall from tobacco could transform the lives of farmers, their families, and communities. It is time for stakeholders to work together to create a more equitable and prosperous tobacco industry.

Newton Mambande is an entrepreneur and researcher with scientific research publications. Reach him at newtonmunod@gmail.com or +263773411103.