ZIMBABWE has recorded a 62% increase in tobacco export volumes to 73,08 million kilogrammes as of March 20, signalling strong global demand for the crop and reinforcing its role as a key foreign currency earner.
At an average export price of US$6,68 per kilogramme, the shipments are estimated to have generated at least US$488,18 million so far.
The sharp rise in exports highlights sustained international appetite for Zimbabwean tobacco, even as local farmers grapple with falling prices at the auction floors, pointing to growing disparities within the value chain.
The country is targeting a record 400 million kilogrammes of tobacco output for the 2025/26 agricultural season, up from 354,8 million kilogrammes produced last season, which generated a record US$1,2 billion for growers.
The 2026 tobacco marketing season opened on March 4.
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“As of March 20, 2026, exports reached 73 081 397 kilogrammes compared to 45 000 494 kilogrammes achieved in 2025, representing a 62% increase. The export price is slightly firmer at US$6,68/kg, translating to a 1% increase compared to 2025,” the government said in a post-Cabinet briefing on Tuesday.
China continues to dominate as Zimbabwe’s largest export market, consistently taking the biggest share at relatively high prices between 2021 and 2025. Other key destinations include Belgium, the United Arab Emirates, South Africa and Indonesia.
Globally, tobacco production is projected to reach 6,5 billion kilogrammes in 2026, with China alone expected to account for more than 2,3 billion kilogrammes.
Meanwhile, 22,9 million kilogrammes of tobacco had been sold locally as of March 18 at an average price of US$2,66/kg, marking a 34% increase in volumes but a 24% decline in prices compared to the same period last year.
Contract tobacco prices have also softened to an average of US$2,72/kg, down 23% from US$3,53/kg in 2025.
Auction prices have fallen even more sharply to US$1,77/kg from US$3,03/kg last year, representing a 42% decline.
Decentralised floors accounted for 42% of total contract sales.
Despite pricing pressures, tobacco production remains attractive due to relatively high returns. The number of households growing tobacco has risen to 135 284, a 37% increase from 98 927 in 2017.
Average earnings per grower climbed to US$9 986 in 2025, up 77% from US$5 651 in 2017, placing many farmers in the upper-middle-income bracket.
Government noted that 40–55% of tobacco growers are beneficiaries of the land reform programme, while participation by women and youth rose by 12,34% and 62,63%, respectively, between 2021 and 2025.
Authorities said they are engaging stakeholders to address challenges facing farmers.
The update was presented by Lands, Agriculture, Fisheries, Water and Rural Development minister Anxious Masuka during a Cabinet meeting.
Zimbabwe’s tobacco sector is currently guided by the Tobacco Value Chain Transformation Plan 2 (2026–2030), which aims to build a US$7 billion industry by 2030.
Key targets include increasing output to 500 million kilogrammes through climate-smart agriculture, irrigation expansion and mechanisation, localising up to 70% of tobacco financing, and diversifying export markets under the African Continental Free Trade Area.