Tobacco Output Surge up
By Francis Maingaila ♥️
Lusaka, Zambia24 --- (25-06-2026) --The tobacco industry remains important to Zambia’s economy, but its future growth depends on making farming and the industry more productive, profitable, sustainable and competitive.
He said sustaining recent growth requires continued investment in productivity improvement, quality enhancement, climate resilience and stronger market competitiveness.
Mr Kapalu said tobacco production had risen from about 30 million kilogrammes in 2022 to more than 100 million kilogrammes in 2025, describing the increase as a clear sign of commitment from farmers and industry players.
He said the growth has boosted export earnings, GDP contribution and rural livelihoods. However, he warned that the sector is now operating in a more demanding global market shaped by changing consumer preferences, strict sustainability standards, climate pressures and rising competition.
Mr Kapalu said Government remains committed to creating an enabling environment that supports productivity, investment, value addition and competitiveness, while strengthening cooperation between farmers, processors, buyers, financiers and other stakeholders.
He said access to affordable financing remains critical, adding that Government is working on mechanisms to support investment in irrigation, mechanisation, climate adaptation technologies, processing and value addition.
Mr Kapalu encouraged increased investment in downstream processing, saying Zambia must move beyond raw production if it is to fully benefit from its agricultural commodities.
He said the proposed Public-Private Partnership Tobacco Industrial Park could boost industrial development, export earnings and job creation.
He added that Government is prioritising climate resilience through irrigation development, water harvesting, climate-smart agriculture, sustainable land management and environmental protection.
Mr Kapalu urged industry players to adopt modern technologies and sustainable production practices that improve efficiency while protecting natural resources.
He also emphasised the importance of the Tobacco Act and Tobacco General Regulations, 2026, saying they are key to ensuring transparency, accountability, compliance and orderly growth of the sector.
He said Government will continue engaging stakeholders to ensure the regulations remain practical and supportive to industry needs.
“Our collective responsibility is to build a tobacco industry that is productive, competitive, sustainable and inclusive,” Mr Kapalu said.
He urged delegates at the congress to use the platform for dialogue, learning and stronger partnerships.
Mr Kapalu said Government views tobacco as a strategic sector in its economic transformation agenda and will continue supporting reforms, innovation and public-private partnerships.
He officially opened the congress and wished delegates fruitful discussions.
Entrepreneurship and intrapreneurship specialist Windu Matoka has urged farmers to shift from subsistence farming to a structured, business-oriented approach if agriculture is to become more competitive and sustainable.
Mr Matoka said many farmers remain stuck in subsistence production due to weak record keeping, poor market planning and lack of business discipline. He said even small farms can grow into strong commercial enterprises if properly managed.
He said agriculture should be treated as a business like manufacturing, mining, construction, services and trade, stressing that success depends on planning, discipline and efficiency.
Mr Matoka said farmers must understand market demand before production, conduct proper market research and ensure consistent product quality. He said customers remain central because they determine income, making pricing and quality key to competitiveness.
He added that labour, suppliers, financial institutions, government agencies and business associations all play important roles in agricultural success. He also stressed compliance with regulations such as business registration and taxation to unlock wider opportunities.
Mr Matoka said financial discipline is essential, including proper record keeping, separating business from household finances, and reinvesting profits into production. He warned that poor records limit access to credit and slow business growth.
He said risk management, diversification and value addition are vital for long-term sustainability. He encouraged farmers to diversify crops, adopt insurance and process raw products to reduce risks and increase income.
Mr Matoka said agriculture must be treated as a structured enterprise with clear goals and strong management systems. He warned that without a business mindset, most farmers risk remaining at subsistence level.
Meanwhile, Tobacco Association of Zambia (TAZ) President Sianga Musheke has called for policies that improve farmer profitability and strengthen the competitiveness of the tobacco industry.
Speaking at the 61st Annual Congress of the in Lusaka, Musheke said the sector remains a key source of export earnings, jobs and rural development, despite rising global challenges.
He said changing global demand, tougher sustainability standards and increasing competition are pushing producers to become more efficient and innovative.
Musheke welcomed the reduction of the tobacco levy from 2 percent to 1.5 percent, saying it will help ease production costs for farmers. However, he noted that farmers had hoped for a deeper reduction, adding that ongoing dialogue between Government and stakeholders remains important.
He also welcomed continued consultations on council levies and other charges affecting agriculture, saying such engagement is necessary to improve farmer viability.
Musheke said access to affordable financing remains a major challenge and called for sustainable funding models to support irrigation, mechanisation and climate-smart agriculture.
He urged increased investment in value addition and local processing, saying Zambia must begin to manufacture more tobacco products locally to retain greater economic value.
He expressed support for the proposed Public-Private Partnership One-Stop Tobacco Industry Park, saying it could enhance processing, research, training, exports and job creation.
He also highlighted the need for investment in irrigation and water harvesting technologies to strengthen resilience against climate change.
Musheke welcomed the Tobacco Act and Tobacco Regulations of 2026, commending Government for maintaining stakeholder consultations during the reform process.
He reaffirmed farmers’ commitment to working with Government and industry players to build a competitive, resilient and sustainable tobacco sector that contributes meaningfully to national development.
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