Zimbabwe: BATZ Set to Finance Tobacco Farmers

Source from:  The Herald (Harare) September 26, 2006 09/28/2006

BRITISH American Tobacco Zimbabwe (BATZ) is set to finance tobacco farmers for the 2006/7 farming season in an effort to boost output in the sector. BATZ managing director Mr Gary Fagan said his company would engage experts in the tobacco industry for this purpose. "We will be supporting tobacco farmers together with our sister company Zimbabwe Tobacco Growers' Company, which will be providing expertise so that more of the crop will be grown to support the domestic and foreign markets as well," said Mr Fagan. In addition, he said BATZ will engage other farmers under its contract farming scheme. He was, however, not in a position to say how much money the company would commit towards this venture as BATZ was still awaiting the necessary regulatory approvals. "Once the central bank approves our plan to finance tobacco farming we will begin to disburse the funds to the farmers for the coming season," added Mr Fagan. Currently, the company was working towards acquiring commercial and residential properties to cut down on escalating rental costs. BATZ will use its own resources to acquire the properties. In its half-year results to June 30 2006, the group recorded a 29 percent drop in sales, which the firm attributed to the harsh economic environment characterised by foreign currency scarcity and interest rate instability. Turnover went up by 970 percent to $1,649 billion from $154,070 million in the same period last year while income attributed to shareholders stood at $1,1 billion and earnings per share were $64,975 per share. BAT is one of the world's largest listed cigarette manufacturers and wholly owns Export Leaf Tobacco Company, which buys and sells tobacco. Enditem