Key Business Points
- Tea production in Malawi fell by 7% in the first four months of 2025, with a total output of 24,943,305 kg, highlighting the need for the tea sector to adapt to changing market conditions.
- Innovation and collaboration are crucial to maximizing export earnings from the tea crop, as emphasized by Agriculture Minister Sam Kawale, who noted the industry’s potential to generate over $100 million annually in foreign exchange.
- Investment opportunities exist in Malawi’s tea sector, which employs over 60,000 people and accounts for 10% of global tea production, making it a significant contributor to the country’s foreign exchange earnings.
Malawi’s tea production has experienced a 7% decline in the first four months of 2025, with a total output of 24,943,305 kg, according to the Tea Association of Malawi (Tam). This decrease is significant, as it represents a drop of 1,884,936 kg compared to the 26,828,241 kg produced during the corresponding period in 2024. However, Tam’s Chief Executive Officer Tonda Chinangwa remains optimistic, citing monthly production figures that show signs of recovery. Favourable weather conditions may be a contributing factor to this recovery, with April 2025’s production of 6,784,832 kg exceeding the 6,013,747 kg recorded in April 2024.
The Reserve Bank of Malawi (RBM) reported that tea production for March 2025 totaled 6.1 million kg, down from 6.7 million kg in February 2025 and 7.3 million kg in March 2024. Tea prices have risen slightly to $1.20 per kg, up from $1.10 in February, which may help mitigate the effects of decreased production. Agriculture Minister Sam Kawale has called for greater innovation and collaboration in Malawi’s tea sector to maximize export earnings from the crop. The tea industry is a significant contributor to the country’s foreign exchange earnings, generating over $100 million annually and employing more than 60,000 people, making it the country’s second-largest foreign exchange earner after tobacco.
As one of Malawi’s top cash crops, tea remains a vital source of foreign exchange. The country accounts for 10% of global tea production, according to the Ethical Tea Partnership, presenting opportunities for investment and growth in the sector. With the right strategies and collaboration, Malawi’s tea sector can continue to thrive and contribute to the country’s economic growth. Mkango wake zdzikikulu (tea is a valuable resource) for Malawi’s economy, and with the right approach, it can remain a key driver of foreign exchange earnings for years to come.
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