As world third laege tobacco plant country, high-grade tobacco is the main agricultural crop of Zimbabwe and its main export crop. Zimbabwe is the world's third largest tobacco producer after the USA and Brazil. Low labour costs and high yields make Zimbabwe a more competitive producer of quality tobacco than its Brazilian and USA rivals. Half of Zimbabwe's tobacco crop is exported to the European Union.

Two key issues face the Zimbabwe tobacco industry. The first is the recently imposed five percent turnover tax on tobacco sold at auctions and the legislation tabled to impose a six percent levy on buyers and growers. The (white controlled) Zimbabwe Tobacco Association has warned that these moves would result in loss of confidence from multinational tobacco buyers.

The second key issue is the growing pressure for increased black involvement in the industry and the plans by the (black controlled) Zimbabwe Association of Tobacco Merchants to set up a third tobacco auction floor and block the award of buying licences to the white-owned merchant company, Tribac.

Faced with this increasing political pressure, many (white controlled) large scale commercial farmers are preparing for diversification into fruit, vegetables and flowers for export