$80m tobacco plant opens
A US$80 million tobacco industrial complex has been set up in the Lusaka South Multi-Facility Economic Zones (LS-MFEZ), bringing the total number of projects in the area to 34.
The project, which has officially been launched by Roland Imperial Tobacco Limited (RITCO)will comprise of the US$30 million cigarette manufacturing plant and the US$50 million primary processing plant and green leaf threshing plant.
RITCO chairperson, Ephraim Mwenda, explained that the cigarette manufacturing plant would comprise of the three separate production lines with an installed capacity of 21, 000 sticks per minute.
Dr. Mwenda said yesterday at the official launch of the plant that the establishment of the industrial park would bring benefits to the country such as job creation for cigarette traders and distributors.
“The second plant to be located in Zambia this industrial park is the primary processing plant, with a capacity to process 4.5 tonnes per hour,” Dr. Mwenda said. He said the company had capacity to produce seven billion sticks per annum and yet Zambia’s consumption was only three billion sticks.
Dr. Mwenda said the facility was none existent in this country and cigarette manufacturing companies are forced to either import from Zimbabwe, South Africa or Botswana.
“The company will largely use Zambian grown tobacco, but in certain instances blend it with other tobacco to produce the requirements of the customer,” Dr. Mwenda said.
And LS-MFEZ chief executive officer, Mukela Lubasi, said the investment zone currently had US$1.3 billion both already actualised investment and pledges.
Meanwhile, Minister of Finance, Felix Mutati, said such a project demonstrated that the local people had capacity to invest in the country and contribute to economic growth through paying taxes.
Mr. Mutati said the investment also demonstrated that it was possible to industrialise the country using local investment. “This is a game changer in the tobacco industry. This demonstrates that Zambians are able to go invest regardless of the challenges, all we need are constructive ideas because they are the ones that make a difference and not the shortage of money. This is the time to stop dreaming and begin to have visions as Zambians,” he said.
Mr. Mutati announced that Parliament had approved amendment to Value Added Tax (VAT) to exempt tobacco from VAT, thereby encouraging the growth of the sector. He had since encouraged tobacco farmers to grow more of the commodity as they had a ready market.
Mr. Mutati also said Government would continue to eliminate challenges that discouraged private sector investment saying the role of the State was to maintain stability in economic expansion.