• The contribution can be in monetary form and also the volumes of tobacco.
• The value can only be known at the point of sale because tobacco is still in the field.
• Tobacco is mostly bought in dollars, therefore Forex will be massive.
Tobacco Board of Zambia (TBZ) says the projected harvest of about 27 tonnes of tobacco by Zambia National Service (ZNS) will significantly contribute to economic growth.
Speaking in an interview with Money FM News, Southern Province Regional Inspector Tyandale Kasongole however said the contribution in terms of value or monetary form can only be known at the point of sale because the tobacco is still in the field.
Mr. Kasongole stated that the 27 tonnes is a contribution to the total volume the Board is expecting, a move he says is a good start because the Service is harvesting for the first time.
“The contribution can be in monetary form and also the volumes of tobacco, but in monetary form it is something that we cannot calculate at this time because the tobacco is still in the field. Yes we are aware that they have put up about 10 hectares field of tobacco in Southern Province, so that is about 2, 700 Kgs per hectare.”
“So in terms of the contribution amount, the value can only be known at the point of sale because there are issues of the quality and Tobacco is bought based on that. The A grades are higher, and then we have also poor grades and the average. But basically that 27 tonnes is a contribution to the total volume that we expect, it is really a good start, I know they are doing it for the first time,” Mr. Kasongole said.
He said apart from adding to the volumes, the expected harvest will have a significant impact on the economy in terms of the value because tobacco is mostly bought in US dollars.
Mr. Kasongole noted that there is a levy that is government collects from tobacco dealers and the fact that the commodity is exported, means it greatly contributes to foreign exchange (Forex) earnings.
“It will have a significant impact on the economy in terms of the value because mostly tobacco is bought in dollars, and apart from that there is a levy that is collected on part of government, and the fact that it is exported, its contribution in terms of the Forex will be massive.”
Zambia National Service is expected to harvest about 27 tonnes of tobacco at its Nyati Farm in Choma, Southern Province.