The TLEAZ was formed in 2019 in response to the need for a relevant body to represent tobacco merchant exporter interests after the significant growth in the crop size and importance as a global supply origin. The TLEAZ’s predecessor the Tobacco Trade Association TTA had become dormant following the decline of the crop to below 50 million kgs in 2008. With the introduction of the contract farming model for smallscale and commercial growers mainly through TLEAZ members, the crop steadily grew to over 250 million kgs in 2018. The nine founder members recognized the need for a different approach to the new dynamic of being contractor, financier, merchant and exporter. These were Boost Hail & Cotton, CTP Tobacco, Curverid Tobacco, Intercontinental Leaf Tobacco, Mashonaland Tobacco, Northern Tobacco, Premium Leaf Zimbabwe, Tian Ze Zimbabwe and Zimbabwe Leaf Tobacco. The TLEAZ Vision is to create a brand that tobacco buyers worldwide will recognize and provide assurance of tobacco that meets world class standards for quality and other customer requirements.
TLEAZ is a voluntary non-profit Association and broadly its objects are to represent the interests of tobacco exporter merchants with all players in the Zimbabwe tobacco value chain. These include TIMB, RBZ, ZIMRA, NECF, Kutsaga, growers, grower representatives such as ZTA, industry groupings such as CZI to name a few. The approach also includes looking outward to the customers who buy Zimbabwe tobacco and their needs, as well as other international bodies such as ITGA, STP, Coresta and ECLT. Of particular emphasis in TLEAZ’s work are issues relating to Environmental, Social and Governance (ESG) and Sustainable Tobacco Production. The TLEAZ and its members do not engage on matters of an anti-competitive nature, nor make use of or exchange information of a commercially sensitive nature.
Membership is open to all tobacco exporters who annually export more than one million kgs of unmanufactured lamina tobacco. This ensures that effort is focused right across the value chain from seed to sale. In June 2022 the constitution was amended to include associate members who are local contracting companies to its members and supply more then two million kgs of green tobacco and contribute positively to the industry. Shasha Tobacco a long-established local tobacco production contracting company and merchant is now an Associate member.
The association is governed by a Council of seven elected members, as well as two external Trustees. The executive comprises an Executive Officer, Agronomy & Sustainability Officer & Administrative Assistant. An Agricultural Consultant is employed specifically on tobacco seed matters and direct liaison with Kutsaga, formerly known as Tobacco Research Board. A consultant is also employed to assist government efforts with the promotion and protection of the Zimbabwe tobacco industry as an important sector of the economy, and regionally under the umbrella of the T5 with is a grouping of the five tobacco growing countries in SADC – Zimbabwe, Malawi, Mozambique, Tanzania & Zambia. Other than the main council, there are sub-committees for Agronomy, Finance and Sustainability which are comprised of the members head of department in those specific areas. TLEAZ also actively participates in the thematic groups of the Ministry of Agriculture Tobacco Value Chain Transformation Plan TVCTP where we have been invited to participate in working groups. The three tobacco processing factories in Zimbabwe are owned & operated by TLEAZ members MTC, ZLT, and TPZ Zimbabwe which is owned by TLEAZ members NT, ILT & PLZ.
Although run independently, the Sustainable Afforestation Association (SAA) is a tobacco merchant initiative to grow trees for tobacco curing fuel with the same founding members who are still actively involved. All TLEAZ members are active members of SAA and contribute 1.5% of the value of all tobacco purchased from growers.
The approach is one of active and open engagement with all stakeholders across the value chain on areas of mutual interest and concern, but not on matters of a competitive nature. Whilst the saying goes “on opposite sides of the bale” is true in some cases, our engagements with other stakeholders in the tobacco value chain result in positive outcomes to work towards aligned goals. Regular liaison meetings are held with ZTA, TIMB and Kutsaga as well as adhoc meetings to address urgent matters. With Government, the long-term goal is to be an effective player in the value chain to shape policies that promote the interests of tobacco in Zimbabwe.
The TLEAZ engaged TwentyFifty to carry out a Supply Chain Impact Assessment (SCIA) in 2022 for the Zimbabwe Tobacco industry. TwentyFifity is an international consultant to many major global cigarette manufacturers. This was a major exercise involving all rightsholders and involved workshops, individual member meetings and field visits to 19 tobacco growing districts interviewing 1,603 rights holders. The resulting reports from TwentyFifty to TLEAZ and its members serves as the basis of an Action Plan that is being followed.
Supply chain Due Diligence has become law or will become law in countries in which the offtakers of Zimbabwe tobacco operate. They are required to interrogate and be aware of effects of ESG issues in their supply chains and act to remediate or cease buying. Failure to do so could result in significant fines, and in some cases trade blocks like the EU have banned the importation of certain products.
This issue of ESG and supply chain integrity of Zimbabwe tobacco needs to be tackled as a stakeholder approach with all actors in the value chain playing a fully committed and active role. Individual efforts will lead to weaknesses in the supply chain and difficulties for international buyers. Suppliers of Zimbabwe tobacco are also rated against other tobacco supply origins not only on price, but also ESG and Supply Chain criteria.
