The purpose of the research was to investigate on the challenges faced by Zimbabwean tobacco exporters in international markets. The main cause of challenges associated with international marketing of tobacco and possible solutions to exporting of tobacco
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AN INVESTIGATION INTO CHALLENGES FACED BY ZIMBABWEAN TOBACCO EXPORTERS IN INTERNATIONAL MARKETS
1. AN INVESTIGATION INTO CHALLENGES FACED BY
ZIMBABWEAN TOBACCO EXPORTERS IN
INTERNATIONAL MARKETS
TATENDA L
MUTINGONDO
2. a)To identify constraints associated with international
marketing of tobacco.
b)To determine the causes of challenges faced by
tobacco exporters.
c)To identify possible solutions to exporting of
tobacco.
RESEARCH OBJECTIVES
3. Zimbabwe is the largest grower of tobac
co in Africa.
6th largest grower in the world
Tobacco contributed 10 to 12 percent to
the GDP
3 main types of tobacco are grown
in Zimbabwe, namely
Its backdone of commercial agriculture
5. Production trends of Zimbabwe Tobacco
2000-2007
Land redistribution ( seized white owned farm )
Sanctions imposed
Unskilled new settlers ( indigenous farmers )
Contract farming introduced to A2 farms
Chinese Investors coming ( establishment of Tian Ze )
Drought 2006
A2 farmer privileges
Recovering period 2008 -
Rapid increase tobacco growers
New settlers selling tobacco at low prices
Speed adoption of higher inputs
Levy system reduced
The restoration of confidence in the banking sector
Contract farming marketing
Look East policy
6. Problem Faced
• Anti-smoking Act
• Global health organization concerning
the issue of consumption of cigarettes
• Malawi have entered in the tobacco
Industry
• An increase in uneducated farmer leading
to poor quality• the government had been incoherent with its
polices making business planing futile and difficult
•Indigenization Bill compelled all foreign-owned
business with assets of 500,000 to sell or cede at
least 51 % if share to black Zimbabweans
7. Problem Faced
• Devaluation of our currency and the introduction of multi- currency
• Introduction of bond 2016
• Parallel market
•The environment (deforestation)
• Health and safety of its workers
• Exploitative practices and child labour
• Centralization ( travel long distance to auctions unpaid stranded and desperate
• Inefficient and unreliable power supply poses major risks to the economy
• The condition of roads have deteriorated
• Shortage of agricultural inputs
8. solutions
Improved research and development
Access to finance
Improved infrastructure development
Export subsidies which give the exporting companies a
competitive edge in the markets.
Improved promotional strategies.
Value addition as a strategy to gain an advantage and a
personal communication with the final consumer through the use
of retail outlets.
Trade promoting organisations to assist exporters