Malawi’s Tobacco Sector Generates $542 Million: A Catalyst for Economic Growth

Key Business Points

• Malawi’s tobacco sales have reached a record $542.2 million, marking a 36.6 percent increase from $396.9 million in 2024, with the cumulative volume sold in 2025 reaching 221.8 million kilogrammes.
• The average price per kg dropped to $2.45 from $2.98 last year, reflecting a shift in market dynamics despite the higher earnings, which is a significant factor for malonda a thiku (tobacco farmers) to consider.
• The earnings from tobacco sales would cover approximately 54 days of imports at August 2025 levels, highlighting the importance of tobacco as a foreign exchange earner for Malawi, with malawi kwacha (MWK) benefiting from the increased revenue.

Malawi’s tobacco industry has experienced a significant boost, with record earnings of $542.2 million from tobacco sales this year. This represents a 36.6 percent increase from $396.9 million realised in 2024. The cumulative volume sold in 2025 reached 221.8 million kilogrammes, exceeding the 174 million kg projected by the Tobacco Commission (TC) earlier this year. Zithere za thiku (tobacco marketing) has been a key factor in the success of the industry, with AHL Tobacco Sales Limited playing a crucial role in the sales process.

According to AHL Tobacco Sales General Manager Graham Kunimba, all the tobacco from the Northern Region had been cleared by the final day, with other companies mopping up the remaining bales. The Acting Chief Executive Officer of the Tobacco Commission, Evans Chilumpha, attributed the bumper crop to favourable weather conditions and improved prices in the previous season, which motivated growers to plant more tobacco. However, speculation is rife that vendors smuggled tobacco from neighbouring countries into Malawi, artificially inflating the country’s volumes and raising questions about kupanga ulunde (traceability) and regional trade enforcement.

Tobacco remains mchenga wa malawi (Malawi’s main export crop) and foreign exchange earner, with the industry playing a vital role in the country’s economy. The record earnings from tobacco sales are a significant boost to the economy, and malawi ndiyeno (Malawi’s industry) is expected to benefit from the increased revenue. As the industry continues to grow, it is essential for stakeholders to address the issues of cross-border smuggling and traceability to ensure the long-term sustainability of the industry. With the tobacco industry being a significant contributor to Malawi’s economy, it is crucial for wathu ku malawi (Malawians) to support the industry and ensure its continued success.

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