Tobacco in rural economy: More than cash crop

ROBERT MWALE

Lusaka

WHEN we talk about tobacco in Zambia, the conversation often centres on production volumes, prices, exports and the annual marketing season. While these aspects are important, they tell only part of the story.
Tobacco is more than a crop grown and sold by farmers.
It is an important contributor to Zambia’s rural economy, supporting livelihoods, creating employment and connecting thousands of people to a wider value chain that stretches from the farm to processing, transportation, marketing and export.
For many smallholder farmers, particularly in rural communities, tobacco provides an important source of household income. The crop has the potential to generate cash that enables farming households to meet various needs, including education, healthcare, food, farm inputs and investment in other productive activities.
This economic contribution extends beyond the grower.
Tobacco production creates opportunities for seasonal and permanent employment in rural areas. From nursery preparation and field establishment to harvesting, curing, grading, transportation and marketing, the crop requires the participation of many people.
The economic activity generated around tobacco therefore reaches communities that may not directly grow the crop. Transporters move tobacco from farms to buying points and markets. Agro-dealers supply inputs and farming materials.
Labourers find seasonal employment. Small businesses provide goods and services to farming communities. Financial institutions and other service providers also participate in supporting agricultural activity.

This interconnectedness demonstrates why tobacco should be viewed within the broader agricultural value chain rather than simply as an individual farm enterprise.
Zambia’s tobacco industry also contributes to the country’s export economy. Tobacco is an internationally traded agricultural commodity, meaning that the performance of Zambia’s tobacco sector has implications beyond rural communities. A productive and competitive tobacco industry can contribute to foreign exchange earnings while creating opportunities for increased participation in regional and international markets.
However, the real value of the crop lies in ensuring that the benefits generated along this value chain are maximised and sustained.
This requires farmers to focus not only on increasing the quantity of tobacco produced, but also on improving productivity and quality. Getting more from every hectare should be a key objective. Better agronomic practices, proper nursery management, appropriate crop nutrition, effective pest and disease management, timely harvesting and good curing practices can all contribute to improved returns.
At the same time, the industry must continue to promote responsible production.
Sustainability is increasingly becoming an important consideration in international agricultural markets. Zambia therefore needs a tobacco industry that is productive, environmentally responsible, compliant with national regulations and capable of meeting changing market expectations.
The role of regulation in this process cannot be underestimated. The Tobacco Board of Zambia, established under the Tobacco Act No. 10 of 2022, has a mandate to promote the sustainable growth and development of the tobacco industry while ensuring compliance with the law and promoting international best practices.
Effective regulation is not intended to hinder legitimate participation in the industry.
Rather, it provides a framework within which growers, buyers, processors, manufacturers and other stakeholders can operate with greater predictability, accountability and confidence.
The contribution of tobacco to the rural economy also highlights the importance of strengthening relationships across the value chain. Growers need access to reliable markets, appropriate inputs, extension services, information and fair trading arrangements. Buyers and processors need a consistent supply of quality tobacco. Regulators need the cooperation of industry players to ensure that standards are understood and followed.
There is therefore a shared responsibility to build an industry that works for all legitimate participants.
For Zambia, the opportunity is not simply to produce more tobacco, but to derive greater economic value from the crop. This means encouraging investment in processing, manufacturing, innovation and other value-adding activities that can create additional employment and economic opportunities within the country.
A stronger domestic value chain can help ensure that more of the economic benefits associated with tobacco remain within Zambia. It can also create opportunities for skills development, enterprise growth and participation by local businesses.
As Zambia continues to pursue agricultural transformation and economic diversification, the tobacco industry has an important role to play. Its contribution should be measured not only by the tonnes produced or the revenue generated during a marketing season, but also by the livelihoods supported, businesses sustained, jobs created and communities empowered.
Tobacco is, therefore, more than a cash crop. It is part of a wider economic ecosystem that connects Zambia’s farmers to markets, businesses, workers and international trade.
The challenge before all stakeholders is to ensure that this contribution is strengthened through productivity, quality, responsible production, compliance, value addition and collaboration.
If we get this right, tobacco can continue to be an important contributor to Zambia’s rural economy while supporting a more resilient, competitive and sustainable agriculture sector.
The author is Tobacco Board of Zambia
executive director.
Email: Lee.Haamunjitbz@
co.zm
Call: 0979427262