Online Reporter
Oliver Kazunga
Senior Business Reporter
The Tobacco Industry and Marketing Board (TIMB) has reviewed the deadline for renewing or applying for a buying licence.
This applies to contractors who directly buy unprocessed tobacco from growers and to individuals or entities who purchase self-financed unprocessed leaf at the auction floors, TIMB said.
In a statement, TIMB, the regulatory body for tobacco production and marketing in Zimbabwe, said the revision was intended to align with the Contractors Compliance Administration Framework.
The Contractors Compliance Administration Framework is a set of rules and procedures designed to ensure that contracting activities are conducted in a fair, transparent, orderly and sustainable manner.
All tobacco contractors must sign the compliance framework before obtaining a contracting license.
The deadline for both contractor’s buying licences and ‘‘A’’ class buying licences has been revised from December 31 to March 31 and October 31 of each year, respectively.
A contractor’s buying licence permits tobacco merchants to purchase unprocessed tobacco directly from the growers they have supported with inputs, financing or other resources.
The purchase takes place at a licenced contract floor.
An “A” class buying licence allows entities or individuals to buy self-funded unprocessed tobacco at licenced auction floors without requiring prior contractual obligations with the growers.
“The new deadline dates are meant to align with the Contractors Compliance Administration Framework which all contractors must sign before they get a contracting licence.
“The revised date for renewing or applying for a new contractor’s buying licence will now be March 31 of every year while the due date for renewing or applying for a new ‘A’ Class buying licence will be October 31 of every year,” said TIMB.
TIMB said contractors were now required to hold valid licences before the contracting season begins in June and to ensure timely input distribution and prevent exploitation of growers through sub-optimal or overpriced input.
“The review of deadline dates will also address longstanding challenges such as delayed input delivery and non-compliance with minimum input package requirements, which have historically disadvantaged farmers.
“Renewing or applying for a new ‘A’ Class buying licence by October 31 will also allow buyers to timeously secure funding so they can purchase tobacco in the next marketing season,” it said.
“These revised deadlines are part of TIMB’s broader strategy to ensure an orderly and more efficient tobacco industry.
“TIMB urges all stakeholders to adhere to the new deadlines set to avoid disruptions in their operations.”
Tobacco is Zimbabwe’s second major foreign currency earner after gold predominantly produced by smallholder farmers who were allocated land under the land reform programme the country embarked on in 2000.
In 2024, the country’s tobacco export earnings increased by 16,6 percent to US$1,4 billion from the export of 243,3 million kilogrammes.
This represents a significant improvement compared to 2023, where exports of 235,4 million kilograms generated US$1,2 billion.
In 2021, the Cabinet approved the Tobacco Value Chain Transformation Plan, aiming to boost production to 300 million kg, transform the sector into a US$5 billion economy.
The plan also seeks to increase local funding to 70 percent, enhance value addition, and boost cigarette output from 2 percent to 30 percent.
While Zimbabwe achieved a production peak of 297 million kg in 2023, output declined to 234 million kg in 2024 due to the adverse effects of the El Nino-induced drought.
