Tobacco board K400k license locking out local firms

The Tobacco Board of Zambia has set the 2027 2027 tobacco licensing fees as high as K400,000 for buyers, a cost that could lock small and medium enterprises out of tobacco trading.

The fees have raised questions over why a statutory regulator would set such a high entry cost for SMEs seeking to participate in the tobacco value chain.

A check on the statement of invitation issued by TBZ shows that the Board has announced different fees for the 2027 tobacco marketing season, depending on the category of licence. Under the new fees, tobacco graders will pay K40,000, while tobacco sales floor operators will pay K360,000 and buyers will pay K400,000.

The K400,000 buyer’s licence could prove particularly difficult for SMEs with limited working capital, as the amount represents a significant upfront cost before a business can even begin purchasing tobacco.

TBZ has, however, stated that the fees are payable for three years, meaning successful applicants will have licences valid for the three-year period.