THE Tobacco Industry and Marketing Board (TIMB) said the regulator’s acting CEO Emmanuel Matsvaire was “technically very sound” and had “performed commendably” during the two years and six months that he has been in that position.
TIMB board chairman Pat Devenish and board member Engelbert Rugeje who is also chairman of the human resources committee made the remarks to the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Fisheries and Rural Development on Tuesday.
Rugeje said appointing a substantive CEO would allow the smooth operations of the country’s tobacco regulatory board.
The same sentiments have been echoed by industry players and market watchers who feel Matsvaire had managed to stabilize the industry and steered the ship well and deserved the job full time.
“Some of the issues that are being raised here (by the committee) are as a result of the absence of a substantive CEO. If we have a substantive CEO tomorrow, most of the problems being asked here will fall away,” Rugeje said.
Matsvaire has been acting chief executive since September 2022 after replacing Meanwhile Gudu who was fired.
“We thought you as a committee has oversight of our industry, you could also be of immense assistance in solving the issue of the CEO,” he said
He said the board had made recommendation on two candidates whom they deem suitable ffor the position and hope they would be considered so that there is continuity and long-term planning at TIMB
Appearing that the same committee, TIMB chairman Pat Devenish explained that the board’s authority, in this regard, ended upon the submission of its recommended candidates.
“We have done our work in terms of identifying the correct organisations to help us recruit these people and we are in the final stages of doing this for the third time,” he said.
In response to a question from committee chairman Felix Maburutse, Member of Parliament for Chivi South, regarding the board’s opinion on the Acting CEO, Devenish said he had performed exceptionally well.
“He is technically very sound,” said Devenish. “He has the knowledge of the industry. His network, most importantly, is growing. He has done a good job and he has impressed the board.”
Rugeje echoed similar sentiments, affirming that Matsvaire had performed commendably.
He noted the exponential growth of the tobacco sector over the past three years as evidence of TIMB’s success under the Acting CEO’s leadership.
“If we don’t resolve this issue of the CEO quickly, the elephant in the room will always be there,” said Rugeje.
Meanwhile, Devenish today said government through the Reserve Bank of Zimbabwe (RBZ) is yet to release promised funds amounting to US$60 million meant for localising tobacco production for the country to harness immense benefits from the crop,
The idea to localise tobacco growing financing was mooted after the realisation that hundreds of millions in US dollars realised along the tobacco value chains were being enjoyed offshore by foreign financiers.
So the idea to locally fund tobacco production was meant to ensure that majority of tobacco proceeds circulate locally.
“There is nothing is that regard Mr chairman, they (government) are still working on releasing those funds,” Davenish in response to a question about the availability of the facility.
This fund can support up to 50 000 hectares with the potential of producing 60 million kilogrammes of tobacco.
This came as the farming community, economists and the Ministry of Finance and Economic Development said the relevant ministry should look at localising tobacco farming funding as a way to retain foreign currency in the country.
Already, there are growing calls from industry players seeking a shift from the current financing model where about 95 percent of tobacco is financed by contractors.
While tobacco is touted as the country’s second single largest foreign currency earners after gold, net export proceeds are significantly less as most of the contract schemes are sponsored using borrowed offshore funds.
If the Government manages to avail the US$60 million facility to help fund tobacco production, the fund will be a good starting point but we have not yet seen the benefits or heard of the roll out yet.
