THE Tobacco Industry and Marketing Board (TIMB) has revealed that it has been able to provide rural tobacco growers with small loans under its “Stow Muhacha Co-operative” initiative, aimed at supporting these small-scale farmers.
The initiative has been in operation for several months as TIMB seeks to drive rural economic transformation.
This initiative aligns with the Tobacco Value Chain Transformation Plan, and the Agriculture, Food Systems and Rural Transformation Strategy.
Under this initiative, smallholder growers receive essential resources and training to produce high-quality tobacco while fostering economic growth, sustainability and the viability of tobacco growers.
Such support comes as many smallholder tobacco farmers face challenges such as limited access to funding, modern equipment and training, leading to inefficiencies, low yields and environmental concerns.
Tobacco is Zimbabwe’s biggest foreign currency earner, through exports, in the agriculture sector.
“TIMB has not only provided technical training, but has also facilitated loan guarantees to help these farmers access the financial resources needed to acquire centre pivots for irrigation, tractors, tillage equipment, working capital and to rehabilitate coal curing systems to reduce the reliance on wood fuel,” TIMB said in a statement.
The tobacco regulator has stepped in to bridge these gaps by empowering growers to operate at a commercial level.
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Under the Stow-Muhacha Co-operative, 28 small-scale tobacco growers have been organised into a registered formal company and are receiving support throughout the entire tobacco production value chain.
Consequently, productivity has significantly improved as some farmers produced 2 800kg under the initiative in the 2023/24 agricultural season, from 800kg.
“The growers successfully serviced their loans and received their dividend payouts, marking a significant milestone in rural economic empowerment and the viability of small to medium enterprises,” TIMB said.
The 2024/25 agriculture season is set to deliver even higher targets.
“Forty hectares of fully irrigated tobacco have been cultivated, and harvesting is currently underway. We aim for an average yield of 3 200kg per hectare and a better average price due to improved tobacco quality,” TIMB said.
The initiative’s success is attributed to the availability of human and financial resources, as well as the recent renovation of curing systems, ensuring improved curing efficiency and sustainability.
“Going forward, the growers will diversify by incorporating alternative and rotational crops,” TIMB said.
“They are also being trained in afforestation practices and are establishing woodlots of fast-growing trees. Measures are in place to provide alternative sources of energy.”
At peak season, the co-operative employs over 120 people, empowering marginalised groups, including women and youth, by providing them with opportunities to contribute to household income.
The paper understands that based on these initial results, TIMB will seek to expand the Stow-Muhacha Co-operative initiative across Zimbabwe.
