Zimbabwe Emerges as Investment Hub with Launch of Africa’s First Nicotine Extraction Plant

A significant milestone in Zimbabwe’s agricultural and industrial landscape has been reached with the establishment of a multi-million-dollar tobacco waste processing facility in Harare, operated by African Extracts Private Limited. Backed by renowned Indian investor Mr. Sunny Sethi, the state-of-the-art plant officially opened on Friday, 17 March, following the completion of its second phase. The facility is now ready to begin processing tobacco, with two additional phases remaining before the facility is fully capacitated.

Located in the Waterfalls industrial area[VIDEO], the modern infrastructure was constructed entirely from the ground up. This is the first facility of its kind in Africa and one of only a few worldwide, alongside plants in India and China. The investment marks a welcome development for Zimbabwe, reinforcing its position as a trusted hub for international capital, particularly from the Global South.

This landmark project represents a strategic advancement in the country’s value addition efforts within the tobacco sector. Zimbabwe, already a leading producer of flue-cured tobacco, has historically derived limited downstream value from its tobacco crop, with only 10 percent of its production benefiting from value addition processes. However, the government has set an ambitious target to elevate this figure to 30 percent as part of its broader economic transformation agenda. The commissioning of African Extracts’ facility creates new opportunities for both the agricultural sector and the broader economy.

The facility specialises in the extraction of high-grade nicotine from tobacco waste, an innovative approach that not only introduces new revenue streams but also exemplifies modern principles of sustainability and circular economy practices. Traditionally, tobacco waste has been treated as refuse or distributed freely. African Extracts, however, is converting this residual biomass into valuable industrial inputs, with extracted nicotine destined for high-demand international markets, including the United States and Europe, where it is utilised in sectors such as pharmaceuticals and biotechnology.

Speaking at the opening ceremony held at the plant on Friday, Tobacco Industry and Marketing Board (TIMB) acting chief executive officer, Mr. Emmanuel Matsvaire, underscored the importance of this investment to Zimbabwe’s agricultural value chains. Mr. Matsvaire noted that the facility will materially increase the proportion of tobacco waste being commercially leveraged, thereby boosting Zimbabwe’s export receipts and enhancing farmer profitability. Furthermore, Mr. Matsvaire highlighted the environmental benefits of the initiative, as the post-extraction waste will be repurposed into organic fertilisers, providing a cost-effective and sustainable alternative to synthetic fertilisers for Zimbabwean farmers.

African Extracts CEO, Mr. Sunny Sethi, affirmed the company’s commitment to advancing Zimbabwe’s industrial and agricultural development objectives, stressing the importance of collaborative engagement with local farmers and supply chain actors. Mr. Sethi outlined the company’s current processing capacity of 20 tonnes of tobacco waste daily, with a target of scaling up to 1,200 tonnes per month. He also highlighted the company’s efforts to embed knowledge transfer and capacity building within local communities by training personnel on safe nicotine handling and modern waste management practices.

At the heart of this project is a strong foundation of South-South cooperation, reflecting a broader trend of emerging economies in the Global South investing in one another’s development. Mr. Sunny Sethi’s investment exemplifies India’s growing interest in Africa, and particularly Zimbabwe, as a dynamic partner for sustainable industrial ventures. African Extracts has other investment portfolios into other African nations, including Kenya, reinforcing the company’s commitment to unlocking Africa’s agricultural potential through innovation and responsible investment.

The initiative further aligns with Zimbabwe’s economic reform agenda, which emphasises beneficiation, value addition, and the promotion of agro-industrialisation. By transforming agricultural by-products into valuable commodities, African Extracts is not only enhancing the competitiveness of Zimbabwe’s tobacco industry but also contributing to the country’s broader goals of job creation, value addition, rural development, and export diversification.

Moreover, the plant’s capacity to produce organic fertilisers from tobacco waste positions Zimbabwe as a leader in green technologies within the agricultural sector. This is particularly relevant as nations across Africa seek to balance productivity with sustainable environmental practices. By reducing reliance on chemical fertilisers, Zimbabwean farmers stand to benefit from improved soil health and enhanced yields, while contributing to the nation’s food security objectives.

African Extracts’ innovative business model is underpinned by cutting-edge technology, environmental sustainability, and a forward-looking strategy that aligns well with Zimbabwe’s aspirations to become a hub for agro-processing and manufacturing. The company’s operations demonstrate how private sector investment can be mobilised to accelerate national development goals while contributing to regional economic integration, as well as South-to-South cooperation.

Zimbabwe continues to attract high-calibre investors and forge partnerships that bring together technology, capital, and expertise, ventures such as African Extracts’ tobacco waste processing plant stand as tangible proof of the country’s promise as a reliable investment destination. In an era defined by south-south collaboration and shared prosperity, this project is a testament to what can be achieved when emerging economies work together to unlock latent value and foster inclusive growth.

For additional information or inquiries please visit africanextract.com