Bongani Cigars, a company founded by Kamal Moukheiber in 2016, is changing the landscape of premium cigar production in Mozambique. Based in Maputo, the company rolls between 10,000 to 12,000 cigars each month, employing a dozen workers and utilizing tobacco sourced from both Mozambique and the Dominican Republic. Each cigar is priced at approximately US$13, targeting major markets including Mozambique, South Africa, the United States, and Europe. Moukheiber's inspiration for starting Bongani Cigars stemmed from observing a noticeable absence of African cigars in the global market, leading him to fill this niche [217a942e].
This initiative aligns with the broader context of the tobacco industry in Africa, particularly in Zimbabwe, where there are ongoing discussions about the need to remodel tobacco financing to retain more revenue within the country. Currently, Zimbabwe only retains about 12 percent of the net earnings from tobacco exports due to reliance on offshore funding. The Tobacco Industry and Marketing Board (TIMB) has reported a significant increase in tobacco exports, amounting to approximately US$370 million in the first two months of 2024, compared to US$122 million during the same period last year [aa991707].
The growing success of Bongani Cigars highlights the potential for premium tobacco products in Africa, which could complement the efforts in Zimbabwe to enhance local financing models for the tobacco industry. By shifting from offshore funding to local financing, Zimbabwe could retain a larger share of the revenue generated from its tobacco exports. However, challenges remain, including the reluctance of local banks to provide credit to tobacco farmers due to collateral issues [aa991707].
As Bongani Cigars continues to thrive, it serves as a model for other African countries to explore opportunities in the premium tobacco market. The company's name, 'Bongani,' which means 'be grateful' in Zulu, reflects a commitment to quality and local production, paving the way for a new chapter in African tobacco entrepreneurship [217a942e].