By Kingsley Jassi:
Tobacco revenue may hit the $500 million mark at the end of the season as record sales have already hit the highest mark in six years.
Three weeks ahead of market closure on August 29, as announced by the Tobacco Commission (TC) in a statement on Wednesday, the auction floors have seen 186 million kilogrammes (kg) sold, raking in $473 million.
However, the increased revenue level this year appears to have been on ground of increased tobacco volumes, which is crawling back to old levels of above 200 million kg.
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“As of 5th August, 185.8 million kilogrammes of tobacco valued at $473.37 million had been sold at an average price of $2.55. Tobacco production in 2025 is the highest for Malawi in six years,” the TC statement reads.
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Agriculture policy expert Tamani Nkhono Mvula commended trends in the industry.
However, he was cautious, saying the global trend is still showing declining demand for tobacco, which may eventually start affecting local producers.
He further said there was an increasing market share by Zambia and Mozambique, which are also emerging as competitors.
“This requires Malawi to invest in production and build capacity because that is what these countries have done,” Nkhono Mvula said.
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With the tobacco industry being the most structured and predictable market, Nkhono said there was a need to replicate the best practices in other potential industries, citing legumes.
“It is very predictable for tobacco farmers on where to sell their produce. That encourages the farmer to produce more. But that is hardly the case with the other agriculture industries, which do not have proper support systems,” Nkhono Mvula argued.
Malawi’s tobacco industry reached a milestone in 2024, generating over $545 million worth of exports, from $389 million the previous year, representing 57 percent of exports.
