Published: 6 hours ago

Zimbabwe's tobacco industry has continued to record impressive export earnings, with revenues approaching US$1 billion in 2024. However, behind the success story, many smallholder farmers say they are sinking deeper into debt and poverty.

The bulk of growers rely on contract farming schemes operated by multinational firms that provide inputs such as seed, fertilizer, and chemicals. While the model ensures production, farmers complain that deductions at the end of each season are so steep that they are left with almost nothing.

"I worked for months, and at the end of the day, my account was in the red. They said I owed them more than I earned," said one farmer from Karoi.

Economists note that without access to bank credit, most smallholders have no option but to sign up for these contracts. The absence of land title deeds also makes it difficult for farmers to use land as collateral to access independent financing.

Agricultural analyst Rudo Mandizha said the system is unsustainable. "Contract farming is supposed to be a partnership, but in Zimbabwe it has become a cycle of dependency. Farmers are supplying global markets yet living in poverty," she said.

Industry associations have called on government to regulate contract terms more tightly and ensure fairer pricing structures. Farmers are also lobbying for land tenure reforms to give them more financial independence.
- online

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