Tobacco earnings hit $143 million – The Times Group

Malawi’s Tobacco Sector Boost: K146 Billion Windfall for Local Economy

Post was last updated: May 27, 2025

Key Business Points

  • The tobacco marketing season in Malawi has seen a 9% drop in sales by weight and a 21% decline in revenue, with 58.9 million kg of tobacco sold generating $143 million in revenue.
  • The average price of tobacco has decreased by 13.5% to $2.43 per kg, affecting the overall market performance and foreign exchange earnings.
  • The decline in tobacco sales and prices is a concern for the agricultural sector, with experts warning of demotivated farmers and potential increases in smuggling.

Malawi’s tobacco industry is facing a challenging start to the 2025 marketing season, with revenue and volume sold remaining lower compared to the corresponding period last year. Latest figures from the Tobacco Commission show that 58.9 million kilogrammes of tobacco have been sold, generating $143 million in revenue. This is a decline of nearly 6 million kg from the 64.7 million kg sold in the same period last year, which raked in $182 million.

The decline in volume and revenue is a cause for concern, with the average price of tobacco falling from $2.81 per kg in 2024 to $2.43 per kg in the current season. This represents a 13.5% decrease in unit prices, which is negatively impacting the overall market performance and foreign exchange earnings. The decline in tobacco sales and prices is a warning sign for the agricultural sector, which is a significant contributor to Malawi’s economy.

Agriculture policy expert Leonard Chimwaza has expressed concern over the decline in average prices and reduced earnings, stating that it is not good news for the country or producers. He warned that the current prices will demote tobacco farmers and lead to increased cases of smuggling. The Tobacco Commission, however, remains optimistic, with spokesperson Telephorus Chigwenembe predicting that earnings will pick up as more tobacco is presented to the market.

The decline in tobacco sales and prices is a reminder of the need for diversification of Malawi’s economy, with a focus on developing other sectors such as agriculture, manufacturing, and tourism. As the country looks to attract more investment and promote local entrepreneurship, it is crucial to address the challenges facing the tobacco industry and explore opportunities for growth in other areas. With the right strategies and investments, Malawi can build a more resilient and diverse economy that benefits all stakeholders.

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Vanessa Banda
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