Economic Impact
The economic efforts of the Tobacco Leaf Exporters Association of Zimbabwe (TLEAZ) are focused on promoting the growth and development of the Zimbabwean tobacco industry. The association works to create a favorable economic environment for tobacco production and export, and to ensure that the industry remains competitive in the global market.
Some of the TLEAZ's key economic efforts include:
- Grower Contracting: TLEAZ members are the main providers of crop finance to estimates for the 2025/26 tobacco growing season.
➤ Over 94,623 growers contracted
➤ 125,904 hectares contracted
➤ Over 274 million kgs expected volume
➤ US$410 million in inputs and loans to growers - Grower Agricultural Extension: TLEAZ members provide in-depth agricultural extension advice to their growers to improve yield and quality, which leads to higher prices and improved grower profit.
➤ US$21 mil annual direct expenditure
➤ US$7.3mil capital expenditure
➤ A total of 700 staff deployed in the field
➤ A total of 900 staff dedicated to growing Good Agricultural Practice extension work. - US$1.4 finance raised to support crop production, green tobacco buying, and value addition through to export
➤ US$365.9 million grower crop production
➤ US$20.4 million grower capital expenditure
➤ US$716.8 million tobacco buying
➤ US$1,082.7 million total payment to growers
➤ US$300.8 million processing and value addition
➤ 81% of financing is sourced offshore due to lack of local market capacity and high local borrowing costs. - Value Addition: TLEAZ members operate three processing factories, value adding tobacco purchased from growers into unmanufactured tobacco, stem & fines for export to cigarette and cut rag manufacturers worldwide.
- Promoting sustainable tobacco production: The TLEAZ promotes sustainable tobacco production through a variety of programs and initiatives. This includes providing training to farmers on good agricultural practices, such as crop rotation and soil conservation. The association also works to promote the use of sustainable inputs, such as organic fertilizers and pesticides.
- Supporting small-scale tobacco farmers: The TLEAZ provides support to small-scale tobacco farmers through a variety of programs and initiatives. This includes providing access to training and resources, as well as helping farmers to market their tobacco. The association also works to advocate for the interests of small-scale tobacco farmers at the national and international levels.
- Tobacco exports revenue: TLEAZ accounts for virtually all tobacco exports (excluding cut rag, cigarettes, cigars, and nicotine extracts) and works to promote the quality of Zimbabwean tobacco to build the reputation of the Zimbabwean tobacco industry in the global market. The Association also assists exporters in overcoming trade barriers.
- Generating tax revenue for the government: The tobacco industry is a major contributor to the Zimbabwean government's tax revenue. The TLEAZ's members pay significant taxes on their tobacco exports, which helps to fund essential government services such as education and healthcare.
The TLEAZ is committed to working with its members and other stakeholders to ensure that the Zimbabwean tobacco industry remains a vital contributor to the country's economy and society. The association's economic efforts are helping to create a more prosperous future for Zimbabwe and its people. The TLEAZ's economic efforts have a significant impact on the Zimbabwean economy and are said to support up to 1,5 million Zimbabweans. The tobacco industry is a major employer in the country, the second-largest foreign currency earner after mining, and contributes over 50% of agricultural GDP.