Malawi’s Tobacco Industry: A $245.6 Million Game Changer for Local Businesses and Economy
Key Business Points
- Diversify your exports: Malawi’s overreliance on tobacco is a cause for concern, with the country struggling to meet its import cover requirements. Consider investing in other sectors to reduce risk and ensure sustainable foreign exchange inflows.
- Monitor market trends: The tobacco market is highly competitive, with prices and volumes fluctuating significantly. Stay up-to-date with market sentiment and adjust your business strategies accordingly to remain competitive.
- Invest in quality: The quality of Malawi’s tobacco is a major factor in determining its price and demand. Invest in improving the quality of your products to increase earnings and stay ahead of the competition.
Malawi’s tobacco sales have generated $245.6 million in revenue in the first 10 weeks of the 2025 marketing season, according to the Tobacco Commission (TC). This is approximately K425 billion, with over 98.4 million kilogrammes of all types of tobacco sold at an average price of $2.49 per kg. However, both the volume of tobacco sold and the revenue generated so far is lower than that during the corresponding period last year.
In 2024, Malawi sold over 100 million kg of tobacco in the same timeframe, generating more than $299.6 million – 16 percent higher than this year’s earnings – at an average price of $2.89 per kg. The average price in week 10 is at $2.49, which is 14 percent lower than the $2.89 recorded during the corresponding period last year. TC spokesperson Telephorus Chigwenembe noted that while early weeks of the season saw a significant lag, sales volumes were beginning to close the gap on last year’s figures.
Burley tobacco dominates the market, with over 90.8 million kg sold so far, generating more than $221.7 million at an average price of $2.44 per kg. This is 13 percent less than the $254 million earned from burley sales during the corresponding period last year. Economist Marvin Banda commented that the price and volume trends reflected market sentiment regarding the quantity and quality of Malawi’s tobacco, both domestically and internationally. He cautioned that low foreign exchange earnings will negatively impact macroeconomic stability, especially since tobacco remains the number one forex earner for the economy.
Banda reiterated the call for Malawi to diversify its export base to reduce overreliance on tobacco and ensure sustainable forex inflows. Last year, Malawi sold approximately 133 million kg of tobacco, earning over $400 million. The country’s reliance on tobacco exports highlights the need for businesses and investors to explore other sectors and opportunities to drive growth and development.
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