Earnings from tobacco—Malawi’s main export crop— hit $267.5 million as at the end of week 14 of sales, figures from AHL show.
The revenue is $27 million more than the $240 million the country realised by the end of the preceding week.
It is also higher than the $141.6 million the leaf fetched during the same period last year.
Available figures show that 113.9 million kilogrammes (kg) of all types of tobacco were traded, up from 67.7 million kg last year.
AHL tobacco sales further indicate that the green gold was being sold at an average price $2.34 from $2.09 last year.
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The revenue from tobacco is slightly higher than the $250 million monthly import bill.
Economist from University of Business and Applied Sciences Betchani Tchereni said the revenue should be secured for essential imports only as the country continues to grapple with an acute shortage of forex.
He reiterated the need for diversifying the country’s exports base.
“We need to have other avenues that can bring in foreign exchange,” Tchereni said.
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Recent figures show that import cover rose to $321.53 million, representing 1.29 months of import cover, by the end of June 2023 from $194.82 million (0.78 months) in May.
Financial Market Dealers Association President Leslie Fatch attributed the improvement to the tobacco season which, he said, has seen quality tobacco being brought to the market and has fetched good prices.
He, however, added that while such progress gives confidence to the market, it can be overshadowed by the apparent huge demand for forex.
“The increased import cover works in the interim and we hope that there are sustainable efforts to maintain the growth in the long run,” Fatch said.
In an earlier interview, Reserve Bank of Malawi Governor Wilson Banda also expressed optimism that the tobacco market will stabilise the foreign exchange situation but was quick to say that the government was working on sustainability plans.
