BLANTYRE (Reuters) – Malawi’s sales of tobacco, its biggest foreign exchange earner, increased to roughly $282 million in the latest season, up from $182 million a year earlier, its industry regulator said.
Dwindling tobacco revenues in recent years have contributed to acute dollar shortages that have resulted in a lack of imported fuel, fertiliser and medicines in the donor-dependent southern African country.
Malawi has turned to the International Monetary Fund for financial support and launched debt restructuring talks with creditors.
Although higher than a year earlier, Malawi’s tobacco sales in the 2023 season fell short of previous years when they exceeded $350 million.
Tobacco Commission spokesman Telephorus Chigwenembe said tobacco output was more than 121 million kilograms in the latest season, up from 85 million kilograms previously, helped by better weather.
Average prices also increased from $2.14/kg to $2.35/kg.
“The selling season was shorter and more efficient with a low leaf rejection rate. The country also registered an increase in buyers from eight to 10, with each needing to fulfil their own demand which increased competition at the market,” he said.
In 2021 President Lazarus Chakwera warned tobacco sales were in terminal decline and urged a switch to high-growth crops like cannabis.
Decades of public health education have gradually convinced people worldwide of the dangers of tobacco, leading to a drop in sales. At the same time cannabis has started to be accepted as a medicine.
(Reporting by Frank Phiri; Editing by Alexander Winning and Louise Heavens)