ZAMBIA’S TOBACCO OUTPUT UP 100 MILLION KG ……CALLS FOR LAW REVIEW FOR SUSTAINED GROWTH

By Jeff Kapembwa

Zambia tobacco output rose fourfold to 100 million tonnes last year despite heightening climate change and other headwinds, a feat authorities pledge to support through sustained and predictable policies to fight poverty and buoy economic growth.
The production rise in tobacco from 22 million kilogrammes in 2022, exemplifies the sector’s ability to retain the reputation as one of the country’s lifeline and help remain one of the country’s Gross Domestic Product contributors.
This, it is envisioned, could bolster enhanced export earnings and fostering employment creation, is a latitude for bolstering job creation and better the livelihood of majority citizenry, which the authorities want to support and maximize returns.
Zambia’s Agriculture Permanent Secretary (Technical Services) John Mlongoti, noted that the jump in output for the cash crop amid headwinds, was encouraging and an enabler for economic growth.
There is greater need to be supported through predictable and viable policies to help develop the economy, whose potential remains untapped.
Officiating at the 61st annual congress of the Tobacco Association of Zambia, themed: “”Building a Competitive and Sustainable Tobacco Industry in a Changing Global Market,”, said the resilience by farmers was commendable.
Wadding through the headwinds helped farmers to double the cash crop output, a call for the Government to devise progressive policies to induce sustainable growth and investment within the agricultural sector, including tobacco production.
The Government recognizes and values the importance of the tobacco sector in the growth of the agriculture sector and its subsequent contributions to the economy but needs unwavering partnership and support from the Government and other players.
This is arguably hoped will create an idea environment to bolster productivity, competitiveness, investment and value addition within.
Despite operating in an increasingly complex global environment characterised by evolving consumer preferences, heightened sustainability requirements, climate-related challenges and growing international competition, Zambia’s tobacco industry has demonstrated remarkable resilience and growth, a unity of purpose that yields positive outcomes.
“This collaboration is critical in ensuring that policy and regulatory decisions are responsive, balanced and supportive of long-term sector development.” Mr. Mlongoti said in a speech read on his behalf by director for agriculture, Dr. Ndashe Kapulu.
Mr. Mlongoti cited the recent adjustments made in Tobacco levy, in consultation with various industry players as a step towards creating an enabling investor-friendly environment, ensuring policy and regulatory decisions are responsive, balanced and supportive of long-term sector development.
Authorities remain committed to exploring mechanisms that facilitate enhanced access to affordable finance for productive investments.
These includes irrigation infrastructure, mechanization, climate adaptation technologies, energy solutions and value addition initiatives to bolster sector growth and make Zambia competitive globally.
The Government’s support for Public Private Partnerships in growing not only the tobacco sub sector but other entities that champion economies growth was ongoing and help to sustain growth.
Supporting and growing the tobacco sector was not hinged on increasing production and also delving into processing, manufacturing and induce other value addition initiative to creating jobs from an expanding economy driven by diversification and industralisation.
Players in the sub-sector should embrace innovative technologies and sustained production while safeguarding natural resources for future generations while it supports adaptation and innovative measures to insulate against climate change and other shocks
And TAZ President, Sianga Musheke commended the Government’s review of the Tobacco Levy from 2 percent to 1.5 percent and appealed for further review as espoused by the players to make the sector more competitive.
“We particularly appreciate the decision to reduce the Tobacco Levy. We view this as the beginning of a broader conversation on creating a more competitive operating environment for producers.”
TAZ encourages continued dialogue on innovative financing mechanisms that support investment at farm level.
Access to affordable finance remains critical if farmers are to invest in irrigation, mechanisation, climate adaptation and productivity enhancement to improve the sector output.
Mr. Musheke encourages training, innovation and investment across the value chain to build the future of the industry and not to mere measure by the volume of tobacco produced.
This should be measured the value retained within our economy through processing, manufacturing, skills development and industrialisation.
“Such an initiative would strengthen Zambia’s competitiveness, attract investment, create employment and contribute significantly to economic diversification and industrial growth.”
During the congress, some deserving farmers were recognized for their unwavering contributions towards the development of the sector.