Cotton Sales Fuel Malawi’s Economic Surge: K7 Billion Windfall for Local Businesses
Key Business Points
- Increased earnings: Malawi has earned K7.4 billion from cotton sales during the 2025 marketing season, a significant increase from last year’s K5 billion.
- Improved efficiency: The introduction of the Cotton Management Information System (Cotmis) has streamlined market operations, improving efficiency and transparency in the cotton market.
- Digital payment challenges: The new digital payment system has posed challenges to some farmers, highlighting the need for increased awareness and education on its use, as well as more agents to reduce queues and waiting times.
The cotton industry in Malawi has shown significant growth, with earnings from cotton sales reaching K7.4 billion during the 2025 marketing season. This represents a substantial increase from the previous year’s earnings of over K5 billion. According to Prisca Jamali, spokesperson for the Cotton Council of Malawi, the improved performance can be attributed to the introduction of the Cotton Management Information System (Cotmis), which has enhanced efficiency and transparency in the market.
The 2025 marketing season, which commenced in June, saw the sale of 6.1 million kilogrammes of cotton, with this year’s production estimated at 20,000 metric tonnes, more than double last year’s output of 8,000 metric tonnes. The Cotton Farmers Association of Malawi President, Lapson Zidana, noted that most cotton farmers had already sold their produce, with only a few selling points remaining open. However, he described the market experience as mixed, citing challenges with the digital payment system introduced with the new system.
Zidana emphasized the need for increased awareness among farmers on how the new digital system works, as well as deploying more agents to reduce queues and waiting times. He noted that the digital system, although a good development, has posed challenges to some farmers, who struggle to navigate its use. Zidana also highlighted the impact of adverse weather conditions on productivity in some areas, leading to farmers producing less than anticipated cotton volumes. As the cotton market continues to grow, it is essential for stakeholders to address these challenges and ensure that the benefits of the Cotmis system are realized by all farmers.
The structured cotton market, which opened on June 7, 2025, has established 50 aggregation centres nationwide, equipped with Cotmis to enhance transparency and efficiency in the market. This development is expected to have a positive impact on the industry, with zinthu zopusika (business opportunities) emerging for farmers, buyers, and other stakeholders. As the industry continues to evolve, it is crucial for businesses to stay informed about the latest developments and trends, such as the cotmis system, to remain competitive and capitalize on emerging opportunities. With the right support and infrastructure, the cotton industry in Malawi has the potential to drive mphamvu ya uchumi (economic growth) and improve the livelihoods of farmers and communities.
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