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Tag: Africa

  • Tanzanian Tobacco Growing

    Tanzanian Tobacco Growing

    Tobacco is Tanzania’s top export for the second straight year, totaling $517.1 million in 2024, up from its previous record of $340.4 million in 2023, according to the Bank of Tanzania. Tobacco passed traditional “king” crops cashew nuts and tobacco two years ago and now accounts for more than a third of the country’s agricultural exports, as Tanzania becomes Africa’s second-largest tobacco producer behind only Zimbabwe.

    With heavy support from the government — providing significant subsidies, working with leaf companies to purchase the crop, and investing in tobacco processing infrastructure — Tanzania’s market is expected to continue its growth, projected to produce $667.9 million in 2025 and continue growing at an annual rate of 3.44% until it reaches $764.8 million in 2029.

    Agriculture Minister Hussein Bashe has emphasized the importance of fair practices within the local tobacco industry. The government has initiated crackdowns on exploitative practices by cooperative leaders to ensure that farmers receive equitable compensation for their produce. There is also a $300 million cigarette factory being constructed in Morogoro to enhance the nation’s processing capacity and ensure the farmers always have a viable market.

  • Deloitte Fined for Audit of Malawi Leaf Company

    Deloitte Fined for Audit of Malawi Leaf Company

    The Institute of Chartered Accountants in Malawi (ICAM) has fined Deloitte Malawi after finding the auditing firm guilty in cases involving its audits of Malawi Leaf Company.

    ICAM conducted investigations through the Ethics and Investigations Committee and convened disciplinary hearings through the Disciplinary Committee on cases of its members, according to Malawi24.

    In one case, ICAM says Deloitte did not give due diligence to the procedures in auditing Malawi Leaf Company (MLC) , a subsidiary of Auction Holdings Limited. Deloitte assured that AHL Group had complied with the applicable International Financial Reporting Standards.

    The company was found guilty for this and the ICAM council has imposed on Deloitte a maximum penalty of a severe reprimand and a fine of 1.5 million Kwacha.

    Between 2014 and 2016, ICAM says Deloitte did not give due diligence to the procedures in auditing and assured financial statements for the years in question that had errors and misstatements because they included fictitious sales made to Eastern Tobacco Company for $1.2 million.

    The company was found guilty for this and the council has imposed on Deloitte a maximum penalty of severe reprimand and a fine of 1.5 million Kwacha.

    However, Deloitte was found not guilty on a third charge related to overvaluing stocks in financial statements for 2014, 2015 and 2016.

  • Kenya Plans to Raise Taxes on Vaping

    Kenya Plans to Raise Taxes on Vaping

    Credit: Vector Shop

    Kenya’s Treasury Cabinet Secretary, Ukur Yatani, has proposed to change the excise tax on liquid nicotine to Sh70 ($0.60 cents) per milliliter in a bid to make it less accessible to users, including school children and the youth.

    Vaping industry advocates warn the new proposals to raise excise tax on nicotine products will push safer alternatives for smokers out of reach and help the black market thrive, according to The Standard.

    Campaign for Safer Alternatives (Casa), a lobby that aims for smoke-free environments in Africa, said the tax changes would result in higher prices of e-cigarettes and negatively impacting those who rely on them to help them stay off cigarettes.

    “Doubling the tax on vapes and nicotine pouches is the opposite of a cash cow. If anything, it will drain more money from the Treasury by forcing vapers into the black market,” said Casa chairman Joseph Magero on the proposals contained in the Finance Bill.

    “Already, Kenya’s sky-high vaping taxes have created a thriving black market for vape products, with many shops selling un-taxed vapes in broad daylight.”

    He said the tax increase will also raise the healthcare costs for Kenya’s government by leaving vapers with no choice but to revert to smoking or using unregulated black market vapes.