New kids on the tobacco block

THE country’s major foreign currency earner (crop) Tobacco is set to reach greater heights in terms on volumes and earning following the entrance of Ethical Leaf Tobacco (ELT) on to the market.

Ethical Holdings Tobacco chief executive officer, David Machingaidze

The company is the brain child of David Machingaidze one of the youngest entrepreneurs in the Zimbabwe.

“Our vision is the full empowerment of the smallholder tobacco farmer through service excellence. This means that we would like to see our farmers moving to sustainable tobacco production practices, including following the correct cultural practices, irrigation, mechanisation and curing. At marketing time, we would like smallholder farmers to enjoy an orderly marketing environment which gives them peace of mind whilst enjoying handsome returns from sales,” he said.

Machingaidze said the current currency crisis was a function of low production and exports.

“In line with ZimAsset and, more specifically, the President’s Ten Point Plan, particularly on point one – revitalising agriculture and the agro-processing value chain – ELT seeks to sustainably grow levels of tobacco production, thereby increasing foreign currency inflows whilst transforming rural communities,” said Machingaidze who was once chief executive of the Cotton Company of Zimbabwe (Cottco)

Machingaidze was two years ago clear of any wrong doing after he had be falsely accuse of spending the company’s money to snoop of the firms employees.

After intense investigations and external audits, Cottco’s board said there was no evidence to suggest that Machingaidze misused any money or company resources.

He said ELT was a company underpinned by a social agenda, which he believe will ultimately generate sustainable economic returns.

“The smallholder grower has come a long way in the tobacco industry, from the days where small numbers of farmers slept out in the cold outside the auction floors to the present day where smallholder tobacco production has been proven to be the most economically-viable model and accounts for about half of tobacco production in Zimbabwe. It is difficult to find better examples of socio-economic transformation, and as a company we seek to support this national agenda,” he said.

The fundamental motivation for ELT is the realisation of the huge potential that exists in African agriculture. Zimbabwe in, particular, provides ample opportunities in the agriculture space as evidenced by the size of the national import bill.

Productivity levels in most smallholder crops have remained low due to a myriad of challenges. In the case of tobacco, there are thousands of self-funding farmers who have not been able to enjoy support from tobacco contractors.

“What we have found notable is the strong drive by such farmers to improve their economic returns from tobacco. Our highly experienced team is uniquely qualified to offer innovative solutions for such farmers. Whilst we acknowledge the difficulties in the present economic environment, we seek to focus on the opportunities that exist. It is our belief that by maintaining a positive mindset, we will be able to not only survive, but thrive in the tobacco sector,” he said.