Export earnings from tobacco reached US$517.1 million (approximately TZS 1.4 trillion) in 2024, up from US$340.4 million recorded in 2023.
In 2024, tobacco exports hit a historical record of US$517.1 million, making it the leading traditional export earner for the second consecutive year.
MOROGORO. TANZANIA is working to elevate production and productivity in the country’s tobacco sector, targeting at least 300 million kilograms by 2030.
This target represents an increase of approximately 115 million kilograms over the next five years.
During the 2024/25 growing season, the sector produced a total of 185,776,212 kilograms of tobacco, cultivated by 94,056 farmers across 137,525 hectares, with an estimated value of around US$475.5 million.
Speaking exclusively to SemaNewz, the Director General of the Tanzania Tobacco Board (TTB), Mr. Stanley Mnozya, said the cash crop continues to register impressive annual growth.
Regarding production and harvest projections for the 2025/26 season, he revealed that 137,525 hectares have been planted by 112,000 farmers, with an expected yield of 210 million kilograms.
He attributed this ongoing success to the collaborative efforts between the Board and the parent ministry to expand markets for nicotine-rich tobacco leaves.
“Previously, only three companies purchased tobacco leaves from farmers in the country, but our joint efforts have increased this number to 17,” DG Mnozya said.
He added that the rise in tobacco buying companies has had a positive impact, including fostering healthy competition among farmers.
“When there were only three companies in the market, tobacco leaf prices were about US$1 per kilogram; currently, one kilogram sells for over US$2,” he noted.
Mr. Mnozya identified Tabora, Mbeya, Katavi, Shinyanga, and Kigoma as the top tobacco-producing regions, highlighting Ruvuma, Singida, Iringa, Geita, and Kagera as emerging areas.
He emphasized tobacco’s importance to the Tanzanian economy, consistently ranking among the top traditional agricultural export crops.
“According to the latest Bank of Tanzania (BoT) economic report, tobacco was among the top five sectors generating lucrative foreign currency during the last fiscal year, which ended in October 2025,” he said.
Export earnings from tobacco reached US$517.1 million (approximately TZS 1.4 trillion) in 2024, up from US$340.4 million recorded in 2023.
“In 2024, tobacco exports hit a historical record of US$517.1 million, making it the leading traditional export earner for the second consecutive year,” Mnozya added.
He stressed that tobacco surpassed other traditional exports like cashew nuts and coffee in 2023 and 2024, contributing over one-third of total traditional export earnings.
The DG explained that the TTB is strategizing to maintain and further improve production, market share, and the sector’s contribution to the country’s GDP.
“Last season, the sector contributed around US$900 million to GDP; now we aim to increase this to at least US$1 billion,” he said.
While the industry significantly contributes to GDP and employment, Mnozya acknowledged ongoing scrutiny regarding economic costs, with some estimates suggesting losses exceeding tax revenues generated.
Looking ahead, he said the Board aims to increase farmers’ total turnover to US$1 billion by 2030.
“Farmers’ total turnover was around US$90 million a few years ago and rose to US$476 million in the last growing season,” he noted.
The DG said the Board is committed to further improving farmers’ total turnover by 2030.
He also indicated that the government continues to support the industry through subsidies to boost production.
“The government is focusing on formalizing the sector, including registering farmers to enhance production and improve tax collection,” he revealed.
Historically, Tanzania’s tobacco production was 72,522,155 kilograms across 54,654 hectares in 2018/19, valued at US$101.7 million, with an average price of US$1.40 per kilogram.
“In 2019/20, production dropped to 37,546,348 kilograms from 39,886 hectares, worth US$53.2 million, with a price of US$1.42 per kilogram,” Mnozya reported.
Production increased to 58,295,899 kilograms in 2020/21, valued at US$90.3 million, with prices averaging US$1.55 per kilogram.
In 2021/22, 39,380 farmers produced 60,874,830 kilograms on 50,135 hectares, worth about US$108.8 million, at a price of US$1.79 per kilogram.
The 2022/23 season saw a sharp rise, with 122,858,564 kilograms produced by 70,319 farmers from various regions, valued at US$286.9 million, at US$2.34 per kilogram.
In 2023/24, production was 117,476,644 kilograms from 92,811 farmers, valued at US$268 million, with prices exceeding US$2 per kilogram.
During the 2024/25 season, 94,056 farmers produced approximately 185,776,212 kilograms, worth around US$475.5 million, with prices at US$2.56 per kilogram.
Tanzania’s tobacco is exported primarily to countries including Belgium, South Korea, France, Arab nations, Poland, South Africa, Indonesia, Jordan, Germany, China, and the United States.
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