Tobacco production in Zambia slumps -Siliya

Fri, 23 Jun 2017 11:24:25 +0000

By AARON CHIYANZO

TOBACCO production in Zambia has reduced from 45 million kilogrammes in 2013 to the current 22 million kilogrammes because of the worldwide anti- tobacco campaigns aimed at reducing consumption of the commodity, says Agriculture minister Dora Siliya.

Ms Siliya said tobacco production had reduced by over 22 million kilogrammes in the last four years.

In a speech read for her by permanent secretary Julius Shawa at the 53rd Tobacco Association of Zambia (TAZ) Annual Congress, Ms Siliya said that the country was losing the much needed foreign exchange because of the 100 percent reduction in tobacco production.

She attributed the decrease in production to the Framework Convention on Tobacco Control (FCTC), whose aim was to reduce consumption of tobacco worldwide.

She however expressed happiness that the congress had gathered to discuss some of the pertinent issues regarding FCTC as it pertained to the industry.

Ms Siliya reiterated that tobacco was one of the key cash crops that could grow the economy and improve livelihoods if properly harnessed.

“I am happy that during this congress, you will discuss some of the issues regarding FCTC as they pertain to the industry. Hopefully, a country position will come out from here which may later be agreed upon with other stakeholders.

Meanwhile, TAZ president Anthony Ford said VAT on tobacco needed to be permanently resolved to cement investor confidence and to bring Zambia in line with other COMESA partners.

Mr Ford anticipated reduced production this farming season due to reduced financing and mounting farmer debt on the local front, internationally and also continued pressure from anti- tobacco lobbyists.

“The world output is likely to experience a decline, Zambia expects to produce about 22,000,000 Kilograms comprising of Virginia and Burley” he said.

And British American Tobacco Zambia (BAT) security and brand enforcement manager Milupi Nyambe said that Zambia had an enabling environment for business.

Mr Nyambe said that BAT would invest more than US$ 25 million in the construction of factory at the Lusaka South Multi Facility Economic Zone (LSMFEZ).

He disclosed that the factory would create 40 direct jobs and over 500 during the construction phase.