Malawi’s Tobacco Sector Hits $500m Milestone: A Catalyst for Economic Growth

Key Business Points

• Tobacco sales in Malawi have exceeded last season’s earnings, with a total of $507.4 million (nearly K900 billion) earned as of August 22, 2025, from the sale of 200.5 million kilograms of tobacco.
• The average price per kilogram of tobacco has dropped to $2.53, compared to $2.98 per kilogram in the previous season, despite the overall increase in earnings.
• The Tobacco Commission has extended the selling period for the 2025 marketing season to September 12, aiming to clear remaining volumes and providing more opportunities for farmers and traders to participate in the market.

Malawi’s business community has reason to be optimistic about the country’s tobacco industry, with the latest figures showing a significant increase in earnings compared to the previous season. As of August 22, 2025, tobacco sales have reached $507.4 million, which is above the $400 million earned in the same period last year. This increase can be attributed to the higher volumes of tobacco sold, with 200.5 million kilograms of tobacco sold at an average price of $2.53 per kilogram. The volumes have surpassed the estimated production for this season, which was pegged at just over 174 million kilograms.

The Tobacco Commission’s decision to extend the selling period for the 2025 marketing season is expected to have a positive impact on the industry, allowing more farmers and traders to participate in the market and sell their produce. The revised schedule means that the Chinkhoma and Lilongwe floors will now close on September 5, instead of August 22 and 29, respectively, while the Mzuzu floors will close on September 12. This extension provides an opportunity for the industry to clear remaining volumes and maximize earnings.

For local entrepreneurs and farmers, this development presents a chance to capitalize on the growing demand for tobacco and increase their revenue. The extension of the selling period also allows for more time to negotiate prices and secure better deals, which can be beneficial for those involved in the industry. As the sector continues to grow, it is essential for stakeholders to stay informed about market trends and developments, such as the zopusazo la thόkο (tobacco market trends), to make informed decisions and take advantage of emerging opportunities.

The increase in tobacco sales is a significant boost to Malawi’s economy, and the Tobacco Commission’s efforts to support the industry are commendable. As the country continues to navigate the challenges of the global market, it is crucial for the business community to remain informed and adaptable, leveraging opportunities like the extended selling period to drive growth and development. With the tobacco industry being a significant contributor to Malawi’s economy, it is essential for stakeholders to work together to ensure the sector’s continued success and kupezeka kwa zovala (growth of the economy).

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