THE recent announcement that global tobacco giant Philip Morris International (PMI) is set to return to Zimbabwe has been met with mixed reactions.
According to media reports, the world’s largest cigarette manufacturer by volume is preparing a dramatic return to the local market after decades of absence.
A PMI delegation, led by corporate affairs officer Christos Harpantidis, was scheduled to arrive in Harare yesterday for high-level meetings with government officials and industry stakeholders.
PMI, which commands a staggering 67,92% share of the global cigarette market, is reportedly eyeing both manufacturing and distribution opportunities in Zimbabwe.
Tobacco industry insiders say the company’s comeback could inject much-needed capital, technology and competition into the country’s second-largest foreign currency earner after gold.
The China Tobacco International Group (CTIG), Zimbabwe’s single largest tobacco buyer, recently announced plans to downsize its orders by up to 15%.
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This aligns with Beijing’s new five-year economic plan and shifting Chinese consumer preferences towards “super slim” cigarettes, which use less tobacco per unit.
Sources added that farmers are likely to feel some relief amid China’s gradual exit.
“China has been our anchor market for over a decade. A 15% reduction is significant and could impact prices and livelihoods,” said an independent source within the sector.
With China scaling back, PMI’s return is viewed by some as a potential lifeline for Zimbabwe’s 120 000 smallholder tobacco farmers.
“A new major player could help to stabilise demand and prices,” noted a Harare-based agricultural economist who spoke on condition of anonymity.
However, others cautioned that the global anti-tobacco lobby and shifting consumer preferences may limit long-term benefits.
“The world is moving away from smoking. Even as new markets open, we must diversify our agricultural portfolio,” warned a tobacco marketing consultant.
“China is moving away from conventional cigarettes to super slim cigarettes that take less tobacco per unit. This is good for Zimbabwe. The more customers, the better,” added a buyer, who declined to be named for professional reasons.
A top official at one of the leading merchant companies downplayed PMI’s investment drive as a non-event.
“We are ready for them. We must not worry. We are the players on the ground,” the merchant added.
Government officials have welcomed PMI’s interest, hailing it as a sign of renewed investor confidence.