AN economic impact assessment study by research analysts, Econex has highlighted the significant role that British American Tobacco Zimbabwe (BAT) plays in the local economy.
The economic impact assessment measures the contribution of a company within a sector to the economy; it captures the direct contribution as well as the indirect and induced impacts.
According to the some of the key findings of the report BAT has contributed a total of US$118.9m to the national economy, equating to 0.8% of Zimbabwe’s Gross Domestic Product (GDP).
Production generated amounted to US$289m equating to 1.4% of Zimbabwe’s production while a total of 44 768 jobs are supported by BAT’s activities.
On average each BAT job in Zimbabwe creates 347 additional jobs across the wider economy while 32 960 agriculture jobs are sustained equating to 0.7% of all agriculture jobs within Zimbabwe.
BAT has 129 employees and has paid US$6.4m in wages and benefits while for every one million capital invested by BAT 615 jobs are created.
The company has contributed a total of US$113.1m in value added to the Zimbabwe agriculture sector equating to 10.7% of Zimbabwe’s total value added from the agriculture sector.
BAT also contributed US$72.8m toward capital investments equating to 3.6% of Zimbabwe’s total capital formation and contributed US$35m directly to government revenue in the form of taxes.
BAT is the largest contributor to excise tax in Zimbabwe accounting for 82% of collections.
Further in 2017 BAT purchased 14% of all raw tobacco leaf produced within Zimbabwe, which equated to 32 million kilograms.
Meanwhile BAT saw volumes grow by 21% in the first six months of 2018 attributable to growth across all segments.
Total revenue was 19% up to US$19.9m against the same period last year. Gross Profit for the six months increased by 22% to 14.6m driven by increased sales volumes and efficiencies in the cost of production.