Tobacco earnings no relief for Zimbabwe

THIS year’s tobacco proceeds will not help improve Zimbabwe’s liquidity challenges, economic analysts have said.
This follows high expectations that tobacco earnings ― which traditionally reach US$800 million a year ― could help ease foreign currency shortages, but farmers are holding on to their crop due to low prices.
The marketing season opened on a low note last week with farmers delivering 3 886 kilogrammes (kgs) of the golden leaf on the first day, a 98 percent decrease from the 165 000kg delivered in the same period last year.
Zimbabwe has been facing worsening foreign currency shortages over the past few years and this has crippled imports of key supplies such as fuel, medicines and raw materials for companies.
John Robertson, a respected economist, believes that the foreign currency generated from tobacco sales will not ease the foreign currency shortages as the country’s import bill was too high.
“Our current shortage of money is largely because we have to import a very high proportion of a lot of goods,” he told The Financial Gazette.