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The country has so far earned $231,5 million in tobacco exports with Belgium emerging as the new major consumer

Oliver Kazunga Senior Business Reporter
ZIMBABWE has since the beginning of the year exported 50.6 million kilogrammes of tobacco worth $231.5 million with Belgium leading as the major buyer of the golden leaf.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that as of August 8, Belgium had spent $72.5 million on Zimbabwe’s flue-cured tobacco at an average price of $4.92 a kg.

During the comparable period last year, $224.4 million was spent by the tobacco merchants importing 53.4 million kgs at an average price of $4.20 per kg.

China, which traditionally is the major importer of the country’s tobacco, was presently on fourth position having spent $34.6 million on 5.6 million kgs at an average price of $6.14 a kg.

The United Arab Emirates (UAE) was among the top five consumers of Zimbabwe’s golden leaf.
On second position, UAE has purchased six million kg of tobacco worth $17.4 million at an average price of $4.92 a kg.

South Africa was on third position having so far spent $25.5 million importing 5.9 million kgs of the golden leaf from Zimbabwe at an average price of $4.32 a kg while Russia was on fifth spot consuming 2.7 million kgs valued $10 million at an average price of $3.58 a kg.

So far, 45 countries from around the world were importing tobacco from Zimbabwe while by the end of 2013 about 50 economies imported the golden leaf.

Meanwhile, TIMB said the continued trickling of contract purchases after closure of auction floors have seen the percentage market share for contracted tobacco marginally rising from 76.1 percent to the current 76.4 percent of 2014 total production.

During a similar period last year, contractors had accounted for 67.5 percent of total production against 32.5 percent of auction tobacco.
“Seasonal total purchases rose to 215.1 million kg. In a corresponding period in 2013, an estimated 164.3 million kg were sold at an average price of $3.69 a kg,” said TIMB.

Although liquidity crunch has remained one of the major issues negatively affecting the economy since the introduction of a multicurrency system in February 2009, tobacco export earnings have become a key in providing liquidity support.