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Monday / November 25.
HomeAgribusinessReview of tobacco industry regulation to increase market size – TBZ

Review of tobacco industry regulation to increase market size – TBZ

The Tobacco Board of Zambia – TBZ has welcomed the directive by Agriculture Minister Michael Katambo to immediately start the process of reviewing the laws governing the Tobacco sector to bring harmony to the industry stating that this exercise will lead to increased access to markets.

Agriculture Minister Katambo directed his newly appointed permanent secretary Songowayo Zyambo  last week to immediately embark on a process of reviewing statutory instruments – SI’s 84 and 85 in full consultation with all stakeholders .

TBZ Chief Executive Officer – CEO James Kasango has told Zambia Business Times – ZBT in an interview that the board is working towards coming up with a Memorandum of Understanding – MOU with government which will facilitate the review of SI’s 84 and 85 enacted to regulate non auctionable tobacco.

Kasango said the reopening of consultation on the SI’s and the further review of tobacco legislation by government will bring together consensus among all players in the tobacco industry. This has been the main stumbling block in the growth of the Tobacco Industry in Zambia.

“As TBA, we will work hard to bring on board the tobacco growers of all sizes to participate in the review process of the laws so that a firm foundation is put in place and we are keen to perform the role of intensifying services to small scale farmers so that we adopt and use the best practices in the production of tobacco.” he said

Meanwhile, the TBZ CEO said the board is also focusing on ensuring that the tobacco  act cap 237 enacted in 1968 and tobacco levy cap 238 which were enacted in 1968 are revised  in order to have new acts that reflect and talk to the current business environment.

The CEO also mentioned that the access to markets has been a major challenge to the production of tobacco in Zambia adding that, last year, the board produced 31 million kilograms of tobacco with only 5 buyers out of which 3 are big buyers.

He however said the board has anticipated that Zambia will produce about 33 million kilograms of tobacco this year but the effects of the difficult weather pattern causing dry spells might reduce the production to below 30 million kilograms.

He added that Zambians should therefore take advantage of its bilateral trade with China by engaging investors from that country into the buying of tobacco to increase its production as the crop also contributes to foreign exchange in the country.

He has further called on the public to invest in the production of tobacco as it is a profitable crop that will uplift their farming businesses and living standards and contribute to the overall growth of the Zambian economy.