Revenue from tobacco—Malawi’s top export crop—hit a five-year record high last week, raking in $281.3 million figures from AHL Tobacco Sales show.
The last time Malawi earned close to such an amount was in 2018 when the green gold fetched $337.5 million.
These earnings are higher than the $166.4 million released last year when 78.4 million kilogrammes (kg) of tobacco were sold at an average price of $2.12 per kg.
By the end of week 17 of trading on Friday, about 119.5 million kilograms (kg) of all types of tobacco were sold at an average price of $2.35 per kg.
Minister of Agriculture Sam Kawale said the 2023 tobacco marketing season will remain on record as one of the most successful.
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“The ministry has also ensured more buyers are on the market to enhance competition. For the country to satisfy this growing demand, your Ministry has instructed the Tobacco Commission to go on a massive Grow More campaign across the country,” Kawale said.
The revenue from tobacco is just $30 million above Malawi’s monthly import wage bill of $250 million.
Financial Market Dealers Association of Malawi President Leslie Fatch said Malawi needs to urgently work on diversifying its exports base.
“We always say that we need to stop relying on tobacco as a foreign exchange earner because the challenge is which other avenues do we get foreign exchange from and it is unfortunate that such calls have not been given the much needed attention,” Fatch said.
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Tobacco remains Malawi’s top export and the highest foreign exchange earner seconded by tea then sugar.
This year’s tobacco market opened in April and is expected to close on Friday.
