President Emmerson Mnangagwa has commissioned a state-of-the-art US$102 million tobacco processing plant by Cut Rag Processors (CRP) in Lochinvar, Harare. The investment is expected to significantly boost Zimbabwe’s value-addition drive under the Tobacco Value Chain Transformation Plan.
Speaking at the commissioning ceremony, President Mnangagwa said the facility demonstrated the country’s growing industrial capacity and strengthened Zimbabwe’s agro-processing sector, export competitiveness, and the Second Republic’s push for higher productivity and increased foreign-currency earnings.
“This occasion demonstrates Zimbabwe’s ongoing industrial resurgence and is a testament that Zimbabwe is open for business. Under my leadership, Zimbabwe has placed industrialisation and modernisation at the core of our agenda as we work toward achieving Vision 2030,” he said.
The President described the plant as a major milestone in the country’s value-addition and industrialisation agenda.
“The integrated tobacco processing facility gives us an opportunity to insert our tobacco more competitively into global value chains. This company offers a glimpse into the immense potential of our value chains.
“Cut Rag Private Limited has become one of the leaders in innovation, and this investment reflects the growing confidence the private sector continues to place in our economy and our country.”
The President also urged stakeholders to develop innovative financing mechanisms that support small-scale farmers’ participation in the tobacco value chain.
Buttressing the President’s call, the Minister of Industry and Commerce Mangaliso Ndlovu said that the CRP investment aligns with Zimbabwe’s drive to attract and sustain new capital.
“Today we are witnessing the strengthening of the tobacco value chain. The company has deployed world-class machinery that positions Zimbabwe as a competitive player in the global tobacco market. It is your leadership, Your Excellency, that is driving this positive transformation in our economy,” he said.
The commissioning comes at a strategic moment, following Zimbabwe’s surpassing of its tobacco output targets this season under the Tobacco Value Chain Transformation Plan. Focus has now shifted to beneficiation and value addition to maximise revenue.
The new plant will process 3 million kilograms of cut rag tobacco per month and produce 60,000 cigarette master cases. Its launch supports the national goal of increasing value-added tobacco from 10% to 25%. Currently, about 90% of Zimbabwe’s tobacco is exported semi-processed, yielding only about 12% of its potential earnings.
CRP is one of Zimbabwe’s largest exporters of cut rag tobacco and manufacturer of the Remington Gold cigarette brand. It will operate both Primary Manufacturing Department (PMD) and Secondary Manufacturing Department (SMD) processing lines at the new facility.
