Malawi’s tobacco sector generated a record $540 million in 2025, driven by a sharp 66% increase in export volumes to 221,000 tons, according to Telephorus Chigwenembe, spokesperson for the Tobacco Commission. The volume offset a decline in average prices to $2.45 per kilogram from $2.98 a year earlier, as tobacco remains a key contributor to the economy, accounting for roughly half of foreign exchange earnings.
Looking ahead, the 2026 season is expected to face pressure, with production forecast at 197,000 tons against demand of about 170,000 tons. The supply-demand imbalance is likely to weigh further on prices, raising concerns over revenue stability in a sector critical to Malawi’s economic outlook.
