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AN INVESTIGATION INTO CHALLENGES FACED BY
ZIMBABWEAN TOBACCO EXPORTERS IN
INTERNATIONAL MARKETS
TATENDA L
MUTINGONDO
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
 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
Production trends of Zimbabwe
Tobacco
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
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
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
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

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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
  • 4. Production trends of Zimbabwe Tobacco
  • 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