Markets and Innovation

Business Reporter

Zimbabwe’s tobacco industry is facing a potential bottleneck in processing due to a significant increase in output, some industry experts have said.

Following a record harvest of 354 million kg for the 2025/26 season, the country is aiming for a new target of 400 million kg of flue-cured tobacco.

However, with only three green leaf threshing (GLT) plants currently operational, industry players are warning of severe processing delays.

This could lead to a backlog in fulfilling international orders and an increase in warehousing costs.

Chevron Tobacco’s executive director Mr Tapiwa Masedza noted Zimbabwe’s tobacco processing capacity was failing to keep pace with the country’s record-breaking yields, creating significant bottlenecks and potential delays in international exports.

Mr Masedza highlighted that the country’s three existing GLT plants have a combined processing capacity of approximately 90 tonnes per hour.

He said even with an efficiency rate of around 88 percent, this capacity is insufficient to handle the projected 350 million kg harvest from the current season in a timely manner.

“If you are looking at that, this year we have got [over] 350 million kg, and we started to process it around April,” said Mr Masedza.

He said given the efficiency, if operations were to pause for the Christmas period, approximately 318 million kg would have been processed, with the remainder being handled in January 2026.

“This then creates a challenge, a bottleneck in the processing, because we have got issues to do with export schedules.

“The tobacco that we are talking about is not going to be consumed in Zimbabwe, it has to be exported. And the final consumers, the factories that are probably in Dubai, China and globally, they need this tobacco.

“And what is just going to happen is there is going to be a mismatch between these processing schedules and the export schedules. This is going to create a challenge for the merchants.”

Echoing these concerns, an executive with a tobacco exporting firm, who wished to remain anonymous, said that the logistical challenges are already a major headache for the sector.

“We are constantly worried about the pile-up of un-threshed leaf in our warehouses. Every day of delay adds to our storage costs and puts pressure on our ability to meet our contracts,” said the executive.

“The call for an additional plant is not a luxury; it’s a critical necessity to ensure we don’t squander the gains we’ve made in production.”

Business Reporter

The Zimbabwe Investment and Development Agency (ZIDA) is actively engaging the global investment community, with a key conference underway in the United Kingdom aimed at mobilising private capital and forging strategic partnerships.

Organised in partnership with the Institute of Chartered Accountants of Zimbabwe (ICAZ), the event seeks to showcase Zimbabwe’s progress in creating a competitive and investor-friendly climate, with a focus on sustainable, long-term growth.

According to a ZIDA media release, the conference is “more than just another business event; it is a premier platform for connecting Zimbabwe with the global investment community.”

The event is considered timely as Zimbabwe undergoes significant reforms to position itself as a strategic investment destination. The conference provides “fresh insights into economic reforms, investment opportunities, and sectoral developments,” and serves as a forum for dialogue, fostering partnerships and strengthening networks.

ZIDA’s ultimate goal is to signal to the global market that Zimbabwe is not just open for business but open for “sustainable and strategic partnerships that can drive long-term growth.”

As the anchor of Zimbabwe’s investment ecosystem, ZIDA’s role is to facilitate, promote and protect investment. The Agency operates a One-Stop Investment Services Centre (OSISC) to streamline licencing and registration by integrating multiple government agencies. Digitisation through the e-Regulations Platform has further enhanced transparency and efficiency.

In its promotional role, ZIDA actively markets the country as a competitive destination. Investor protection is a key function, safeguarded by the ZIDA Act and the Investor Grievance Response Mechanism, which provides a time-bound dispute resolution process. ZIDA also provides aftercare services, supporting investors beyond the initial licencing stage by advocating on their behalf to ensure retention and reinvestment.

Zimbabwe presents a wide array of opportunities for private capital, particularly in key sectors such as mining, energy, agriculture and manufacturing.

The energy sector is equally attractive, with rising demand and government commitment to diversifying supply through solar, hydro, wind and gas-to-power projects. Agriculture remains a cornerstone of the economy, while manufacturing offers potential for value addition to raw materials. Tourism and real estate are also drawing attention, supported by world-class attractions and growing urban centres.

Zimbabwe has designed a competitive incentive framework to attract investors. Companies in Special Economic Zones, for instance, enjoy tax holidays of up to five years, followed by a reduced corporate tax rate of 15 percent for the subsequent five years. Export-oriented companies benefit from further tax reductions, with rates as low as 15 percent. Investors are also supported by a VAT deferment facility for capital equipment valued at $500 000 or more, providing vital cashflow relief.

According to ZIDA, the investment landscape has been active. The Agency issued 397 investment licences in the second quarter of 2025. The top sectors attracting investment between 2022 and 2025 were mining, manufacturing, construction and energy. The primary source countries for investment during this period were China, India, the EU, the UAE and South Africa. UK-linked licences were mainly in mining, energy, construction and tourism.

SHANGHAI, Dec 5 (Reuters) – Automakers in China are ramping up exports of hybrid vehicles to Europe and planning more models for the key market, exposing the limits of the European Union’s electric vehicle tariff scheme.

The bloc’s latest EV tariffs to protect its auto industry from a flood of cheap Chinese imports do not apply to hybrid cars. That could see major brands such as China’s top EV maker BYD (002594.SZ), opens new tab continue expansion in the region, analysts say.

Some manufacturers are also shifting production and assembly to Europe to lower the cost around tariffs.

“The increase is driven by Chinese OEMs shifting toward PHEVs (plug-in hybrids) as a way to sidestep the new EU tariffs on BEV (battery-powered EVs) imports from China,” said Murtuza Ali, an analyst at Counterpoint Research.

He expects China’s hybrid exports to Europe to grow 20% this year and even faster next year.

EU tariffs of up to 45.3% on Chinese EV imports came into effect in late October to counter what the European Commission says are unfair subsidies that helped create spare production capacity of 3 million EVs per year in China, twice the size of the EU market.

The anti-subsidy investigations on Chinese EV imports, which began in October 2023, and slowing car sales in China from an economic slowdown, have led some automakers to change their European strategy to focus more on hybrid exports, the data shows.

That helped exports of plug-in hybrids and conventional hybrids account for 18% of China’s total vehicle sales to Europe in the third quarter, doubling from 9% in the first quarter. The proportion of EV shipments, however, fell to 58% from 62% during the same period.

The trend is likely to gain further momentum.

China, which overtook Japan as the world’s biggest auto exporter last year aided by its dominance in EVs, is stepping up its export drive to address overcapacity at home, analysts say.

Given 100% tariffs on Chinese-made EVs in the United States and Canada, Europe is also one of the most obvious outlets for Chinese auto makers.

The European Commission did not immediately reply to a request for comment on rising hybrid imports from China.

MORE HYBRID MODELS

Major Chinese automakers could upend the European plug-in hybrid market dominated by European and Japanese firms as they meet rising demand for affordable cars with better fuel economy amid rising inflation.

BYD is taking on Volkswagen (VOWG_p.DE), opens new tab and Toyota (7203.T), opens new tab in Europe with its first plug-in hybrid model for the region, the Seal U DM-i.

The model is priced from 35,900 euros ($37,700), 700 euros lower than VW’s best-selling PHEV model Tiguan and 10% cheaper than Toyota’s C-HR PHEV.

It is also considering production of both EVs and hybrids in its Hungarian plant, Chinese official media China Auto News reported.

“The segment could see bigger growth potentials with Chinese automakers bringing more affordable options to Europe that are attractive to cost-sensitive consumers,” said Yale Zhang, managing director at Automotive Foresight.

SAIC (600104.SS), opens new tab, whose EV exports to the EU face the highest additional rate of 35.3%, has said it plans products with various powertrain systems for the European market.

Geely (0175.HK), opens new tab, China’s second-largest automaker by sales, launched a new plug-in hybrid under its brand Lynk & Co for Europe last month.

“The recent increased introduction of electrified hybrid models to markets around the world by global automakers is in line with consumer demands and purchasing trends,” Geely said in response to Reuters questions. It did not comment on trade restrictions.

Japanese automakers too are taking advantage of the growth of conventional hybrids in Europe this year and addressing their overcapacity problems in China.

Honda (7267.T), opens new tab, which suffered a 29% slump in China vehicle sales in the first nine months of this year, exports two conventional hybrids, one plug-in hybrid and one pure EV model from China to Europe.

While increasing exports from China could trigger intense price competition in Europe’s hybrid vehicle market, some experts caution Chinese firms are likely to tread more carefully for fear of sparking another round of EU tariffs.

“If BYD takes Qin Plus to Europe at a price of 20,000 euros, I am sure it would trigger another earthquake,” Zhang said, referring to its hybrid sedan.

President-elect Donald Trump in late November pledged tariffs on the United States’ three largest trading partners – Canada, Mexico and China – detailing how he will implement campaign promises that could trigger trade wars.

Here are companies that may be affected (by sector, in alphabetical order):

AUTOMAKERS

AUDI

Volkswagen’s (VOWG_p.DE), opens new tab Audi plant in San Jose Chiapa, Mexico, makes the Q5, employing just over 5,000 people. It produced nearly 176,000 cars in 2023, its website showed. In the first half of 2024, nearly 40,000 were exported to the U.S., according to the Mexican Automotive Manufacturers Association.

BMW

BMW’s (BMWG.DE), opens new tab plant in San Luis Potosi, Mexico, produces the 3 Series, 2 Series Coupe and M2, with nearly all the output going to the U.S. and other markets worldwide, according to the carmaker. From 2027, it will produce the all-electric ‘Neue Klasse’ model line.

BYD

Chinese EV maker BYD (002594.SZ), opens new tab has been scouting for locations to build a plant in Mexico but has said repeatedly that the factory will serve the domestic market and not produce cars to be sold in the U.S.

HONDA MOTOR

Honda Motor (7267.T), opens new tab sends 80% of its Mexican output to the U.S. market and its chief operating officer Shinji Aoyama warned on Nov. 6 that it would have to think about shifting production if the U.S. were to impose permanent tariffs on vehicles imported from the country.

JAC MOTORS

JAC Motors (600418.SS), opens new tab has since 2017 had a joint venture in Mexico with Giant Motors to assemble JAC brand vehicles. SAIC-owned (600104.SS), opens new tab MG in August announced plans to build a plant in the country.

KIA CORP

South Korea’s Kia Corp (000270.KS), opens new tab has a factory in Mexico that makes its own vehicles and a small number of Santa Fe SUVs for its affiliate Hyundai Motor (005380.KS), opens new tab for U.S. exports.

MAZDA

Mazda (7261.T), opens new tab exported around 120,000 vehicles from Mexico to the United States in 2023. Mazda President Masahiro Moro said on Nov. 7 that the tariff issue is “not a problem that can be solved by individual companies” and it would carefully examine the details before deciding its response.

NISSAN MOTOR

Nissan Motor (7201.T), opens new tab has two plants in Mexico where it makes the Sentra, Versa and Kicks models for the U.S. market. It produced nearly 505,000 vehicles in Mexico in the first nine months of 2024. The company does not disclose how many of those were exported to the U.S. market.

STELLANTIS

Stellantis (STLAM.MI), opens new tab operates two assembly plants in Mexico: Saltillo, which makes Ram pick-ups and vans, and Toluca, for the Jeep Compass mid-sized SUV. The Franco-Italian group also owns two assembly plants in Ontario, Canada: Windsor, where it makes Chrysler models, and Brampton, currently under retooling and scheduled to resume production in 2025 with a new Jeep model.

TOYOTA MOTOR

Toyota Motor (7203.T), opens new tab builds its Tacoma pick-up truck at two plants in Mexico. It sold more than 230,000 of them in the U.S. in 2023, representing about 10% of its total sales in that market. Toyota used to produce the Tacoma in the U.S. but now ships all of them from Mexico, which accounts for most of the production at the plants.

VOLKSWAGEN

Volkswagen’s (VOWG_p.DE), opens new tab factory in Puebla is the largest auto plant in Mexico and one of the largest in the VW Group, according to the carmaker’s website. Nearly 350,000 cars were made there in 2023, including the Jetta, Tiguan and Taos, all for export to the U.S.

AUTO SUPPLIERS

AUTOLIV

Sweden’s Autoliv , the world largest maker of airbags and seat belts, said it employs around 15,000 staff in Mexico, declining to comment on exports into the U.S. from there.

MICHELIN

Tyre maker Michelin (MICP.PA), opens new tab has two plants in Mexico — Queretaro and Leon — and three in Canada: Pictou, Bridgewater and Waterville.

YANFENG

Chinese seat maker Yanfeng Automotive Interiors have been producing in Mexico for years to supply automakers including General Motors (GM.N), opens new tab and Toyota, which had relocated their capacity to Mexico to lower costs.

OTHERS

Other part makers with plants in Mexico serving automotive production for the U.S. market include Italian tyremaker Pirelli (PIRC.MI), opens new tab, Italian premium brake maker Brembo (BRBI.MI), opens new tab and Italy’s Eurogroup Laminations (EGLA.MI), opens new tab.

Eurogroup Laminations, which has Tesla (TSLA.O), opens new tab among its clients, specialises in stators and rotors, two key components of electric motors and generators.

U.S. automaker Tesla encouraged its Chinese suppliers to set up plants in Mexico in 2023 to mainly supply its planned factory in Mexico.

Tesla originally planned to start production in Mexico in early 2025 but has largely shifted to an expansion plan for its Texas plant.

Tech giant Apple plans to invest in a manufacturing plant in Indonesia that produces components for smartphones and other products, Indonesia’s investment minister said on Thursday.

Rosan Roeslani told reporters that Apple (AAPL.O), opens new tab and Indonesia are still ironing out details of the planned investment.

The minister had said earlier this week that Indonesia was expecting a $1 billion investment from the tech company.

Bitcoin catapulted above $100,000 for the first time on Thursday, a milestone hailed even by sceptics as a coming-of-age for digital assets as investors bet on a friendly U.S. administration to cement the place of cryptocurrencies in financial markets.

Once it broke $100,000 in Thursday’s Asian morning, boosted by U.S. President-elect Trump’s nomination of pro-crypto Paul Atkins to run the Securities and Exchange Commission, it was soon at an all-time high of $103,619, a surge of about 6% on the day. It was last fetching $102,650.

The total value of the cryptocurrency market has almost doubled over the year so far to hit a record just shy of $3.8 trillion, according to data provider CoinGecko. By comparison, Apple (AAPL.O), opens new tab alone is worth about $3.7 trillion.

Bitcoin’s march from the libertarian fringe to Wall Street has minted millionaires, a new asset class and popularised the concept of “decentralised finance” in a volatile and often controversial period since its creation 16 years ago.

Bitcoin has more than doubled in value this year and is up more than 50% in the four weeks since Donald Trump’s sweeping election victory, which also saw a slew of pro-crypto lawmakers being elected to Congress.

“We’re witnessing a paradigm shift,” said Mike Novogratz, founder and CEO of U.S. crypto firm Galaxy Digital.

“Bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream – this momentum is fuelled by institutional adoption, advancements in tokenisation and payments, and a clearer regulatory path.”

Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.

“We were trading basically sideways for about seven months, then immediately after Nov. 5, U.S. investors resumed buying hand-over-fist,” said Joe McCann, CEO and founder of Asymmetric, a Miami digital assets hedge fund.

Bitcoin’s proponents cheered Trump’s nomination of Atkins to the SEC.

A former SEC commissioner, Atkins has been involved in crypto policy as co-chair of the Token Alliance, which works to “develop best practices for digital asset issuances and trading platforms,” and the Chamber of Digital Commerce.

“Atkins will offer a new perspective, anchored by a deep understanding of the digital asset ecosystem,” said Blockchain Association CEO Kristin Smith.

“We look forward to working with him … and ushering in – together – a new wave of American crypto innovation.”

A slew of crypto companies including Ripple, Kraken and Circle are also jostling for a seat on Trump’s promised crypto advisory council.