Zitac Seeks US$21m for Tobacco Farmers

Source from:  The Herald 07/06/2009

ZITAC is negotiating with ABSA Bank of South Africa to acquire at least US$21 million to fund 5 000 hectares of tobacco for small-scale tobacco farmers for the 2009/2010 tobacco-farming season. The country recently received a US$60 million loan facility from a Tunisian-based African Bank to boost tobacco production. Tobacco is emerging as one of the country's best cash officer. Mr Hillary Ngombe said his company wanted to ensure that tobacco farmers have access to inputs to increase their production capacity. "We are currently in negotiations with Absa Bank of South Africa and Agri-Bank of Zimbabwe to source funds to support small-scale farmers. "We are looking at supporting 2 000 to 5 000 hectares in which one hectare of tobacco requires US$4 200. "We have a good relationship with small-scale farmers, so it is of paramount importance to ensure that farmers are fully equipped with the much-needed support to increase the production capacity," said Mr Ngombe. He said the company had enough fertilizers in stock for farmers, which is selling at US$31 per bag. "We have enough fertilizer in stock for tobacco farmers, but they are facing serious shortages of wrapping paper. The company is the only tobacco company which is 100 percent owned by locals. It is an industry in which we have to face a lot of competition. "Tobacco needs professionalism, which needs potential investors to support farmers," he said. The tobacco industry requires US$120 million to increase production from the current 42 million kilogrammes to around 75 million kilogrammes. The industry received a major boost during this year's marketing season, which began in May following the adoption of a multi-currency system that has resulted in tobacco farmers receiving proceeds for their crop in US dollars. Enditem