Malawi - Tobacco Reporter

Malawi 2024 Volume Up 17 Percent

Malawi will produce 17 percent more tobacco this year than it did in the 2023 growing season, reports Malawi24, citing a survey conducted by the Tobacco Commission (TC).

The TC projects production of 140 million kg this season. Last year, the country’s farmers sold 120 million kg.

While the projections are up over those of last year, they are down from earlier estimates. The first crop survey conducted in January 2024 showed a 21 percent increase in 2024 tobacco production from that of 2023.

TC Public Relations Officer Telephorus Chigwenembe attributed the decrease to prolonged dry spells in most parts of the country and the poor establishment and performance of some dark fire cured tobacco in the Malawi’s northern region

The report of the first nationwide survey credited the good prices offered in 2023, increased number of growers, increased sponsorship and availability of inputs as reasons for the larger crop estimates.

Tobacco estimate surveys in Malawi are conducted by players in the industry and are coordinated by the Tobacco Commission.

April 2, 2024

Diversification in Africa: FCTC No Help

While participants in the World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) are keen for tobacco growers to abandon the golden leaf, farmers around the world say they receive little support in switching to alternative livelihoods.

Interviewed by the International Tobacco Growers’ Association, Ryan Swales, president of the Zimbabwe Tobacco Association (ZTA), said he has not witnessed any attempts from the global health body to assist with diversification.

“I do not see any help from the WHO FCTC helping the diversification of tobacco farmers in Zimbabwe,” he was quoted as saying. “We are on our own, and a big proportion of large-scale growers have diversified on their own, with no help from anyone else, be it the tobacco companies or the WHO FCTC. If you ask many growers if they know who the WHO FCTC are, you will be met with a blank stare!”

This sentiment was echoed by ZTA CEO Rodney Ambrose, who noted that for Zimbabwe’s tens of thousands of small-scale farmers, there simply are no viable diversification options. “Our ministry engaged in a study on behalf of WHO FCTC some years back, which clearly concluded that there are no economically viable crops other than tobacco for our small-scale farmers. Tobacco is their livelihood.

“However, we are always willing to further explore diversification options that the WHO FCTC may propose.”

In Malawi, tobacco growers have received support from the Foundation for a Smoke-Free World as the country seeks to broaden its economic base.

February 6, 2024

Malawi Licenses 250 Million Kg

The Tobacco Commission (TC) of Malawi has licensed the production of more than 248 million kg in the upcoming growing season, reports Malawi24.

To give growers that missed the December registration an opportunity to participate in the crop, the TC recently extended the deadline to Jan. 31.

TC Public Relations Officer Theophilus Chigwenembe said the commission has not encountered any major challenges affecting the first round of crop estimates survey for the 2023/2024 farming season, which started on 15th this month.

Despite concerns about Malawi’s heavy economic reliance on tobacco production, the government continues to view the golden leaf as a critical resource for the economy.

During a recent industry conference in Malawi, government representatives stressed the importance of compliance and data-driven strategies.

“We believe that high quality data management will help all stakeholders not only track and trace our tobacco but also guide minimum performance levels that are expected of tobacco leaf suppliers in areas such as sustainable agriculture, environment and human rights,” Medrina Muloza Banda, principal secretary in the ministry of agriculture, was quoted as saying by the Nyasa Times.

“Ultimately, this will make our tobacco compliant with international standards, thereby making our leaf more compliant to the global demand.”

January 21, 2024

Malawi Extends Grower Registration Deadline

Malawi’s Tobacco Commission (TC) has extended the registration and licensing period for tobacco growers until Jan. 31, reports The Nyasa Times.

TC spokesperson Telophorus Chigwenembe said the extension period will allow farmers who missed the December deadline to obtain the proper documentation.

The regulator has also waved late registration penalties and will allow farmers to pay the associated fees after the sale of their tobacco this year.

The TC said it would conduct its first crop estimates in February for the upcoming growing season.

January 14, 2024

Malawi Approves Tobacco Law

Lawmakers in Malawi approved the Tobacco Industry Bill, which stipulates how stakeholders are supposed to operate, reports the Nyasa Times.

In addition to provisions on child labor and tenancy, the legislation includes clauses on traceability and the use of agrochemicals. Lawmakers hope the new rules will improve compliance and make it easier for Malawi to market its leaf around the world.

The Tobacco Industry Bill will also regulate contract and noncontract farming, tobacco production and delivery quota, and prices, along with disposal of tobacco stalks.

November 30, 2023

Malawi Now a Full Party to FCTC

Malawi is now a full party to the World Health Organization’s Framework Convention on Tobacco Control (FCTC). The government ratified the FCTC in August 2023, and the treaty took effect Nov. 16.

“WHO congratulates Malawi for this historic step and reaffirms its strong commitment to collaborating closely with the government to achieve the shared goals of the WHO FCTC,” said Neema Rusibamayila Kimambo, WHO representative in Malawi, in a statement. “Together, we will continue our collective efforts to protect public health and work towards a tobacco-free future.”

The WHO said it is ready to provide extensive support to ensure Malawi’s successful implementation of the convention and welcomes the nomination of a government liaison to work closely with the FCTC Secretariat.

The FCTC, which entered into force in February 2005, provides an internationally coordinated response to combating the health impact of tobacco, setting out specific steps for governments addressing tobacco use and production.

The treaty also promotes crop replacement and diversification.

Malawi is one of the world’s tobacco-dependent economies. Depending on the season, tobacco accounts for between 40 and 70 percent of the country’s export earnings.

In a special report earlier this year, Tobacco Reporter examined industry efforts to help Malawi strengthen its economy by developing supplemental value chains, such as groundnuts, bananas and mushrooms.

November 20, 2023

Malawi Devalues

Malawi is devaluing the kwacha’s by one third.

In a notice to authorized dealer banks seen by Reuters, the country’s central bank said the kwacha’s exchange rate to the U.S. dollar would be adjusted to MKW1,700 from MKW1,180.

The southern African country has been struggling with dwindling foreign currency reserves due in part to declining revenue from tobacco exports.

Malawi earned $282.62 million from tobacco sales during the 2023 marketing season. While this figure was up substantially from the $182.12 million generated by sales of the golden leaf in the previous season, it is not nearly enough to alleviate the nation’s trade imbalance.

In 2020, Malawi’s import bill was $2.8 billion, versus exports of only $800 million, according to the National Statistics Office.

Depending on the season, tobacco accounts for between 40 percent and 70 percent of Malawi’s export earnings. To reduce its heavy reliance on a single commodity, the country has been working to diversify its economy by developing supplemental value chains, such as mushrooms, bananas and groundnuts.

November 9, 2023

Alliance One Malawi Spends Millions on CSR

Alliance One Malawi has spent roughly MKW442 million ($384,721) on its corporate social responsibility programs over the last two years, according to The Nyasa Times.

The company renovated and constructed new classrooms for more than 22 primary schools over the last two years, according to Fran Malila, corporate affairs manager.

“As a corporate responsibility entity, Alliance One thought it wise to renovate as well as construct new classroom blocks in these 22 primary schools so that pupils who are future leaders of this country should learn in [a] better environment,” said Malila. “In the process, we are also fighting child labor as our aim is to see every kid to go to school and not be used as a source of labor in tobacco fields.”

The renovated schools have led to higher student enrollment and retention rates.

According to Malila, the company also constructed a postnatal ward and donated various medical equipment to Mzuzu Central Hospital’s pediatric ward.

October 23, 2023

Malawi Extends Tobacco Farmer Registration

Malawi’s Tobacco Commission has extended tobacco farmer registration and licensing to Oct. 31, 2023, according to The Nyasa Times. The end date was originally scheduled for Sept. 30, 2023.

“We have decided to extend the exercise by one month, giving enough period to them [stakeholders and growers] without charging any fee or penalty to them,” said Tobacco Commission CEO Joseph Chidanti Malunga.

The Tobacco Commission wants farmers to produce as much tobacco crop as possible because there is more demand for higher volumes from traditional and international buyers.

It is illegal in Malawi for farmers to grow tobacco without being licensed.

October 2, 2023

Malawi Tobacco Control Audit Exposes Overages

A board of commissioners-ordered internal investigative audit of the Malawi Tobacco Commission exposed “extravagant over-expenditure and other stupendous financial irregularities” of the 2022–2023 fiscal year budget, according to the Nyasa Times.

Internal Audit Manager Rhoda Zaniku noted in her summary that the commission overspent by MWK22 million ($20,339.04) for the enforcement, liaison, monitoring and evaluation budget, indicating a 357 percent negative variance. The commission’s majority of votes were overutilized by more than the planned activity budgets.

Billboards worth MWK25 million were not budgeted for the 2022–2023 fiscal year. They represented 89 percent of the actual cost of enforcement, liaison, monitoring and evaluation charges. The billboard supplier, Optima Group, requested an 80 percent advanced payment—the commission granted 70 percent “contrary to the Secretary of Treasury instructions, which banned suppliers demanding payments before delivering goods or services.”

Travel and media budgets were also overspent as well as the budget for tobacco consultative meetings and the budget for motor vehicle running maintenance. The internet and VPN budget was overused as well. The audit also showed that the commission had no policy or guidelines on how to use afforestation levy money—only using MWK4.4 million of MWK8 million to procure tree seedlings, with the rest used on materials and expenditure for the National Tree Planting Day event.

“The audit exercise noted that there was no evaluation process when procuring some goods and service [and] that the IPDC [Internal Procurement and Disposal Committee] used the fixed team to evaluate process of procuring of goods and services,” the audit report said.

Of the commission’s budget votes, 40 of the 72 were spent in excess in violation of treasury regulations and the Public Finance Management Act.

Zaniku stated that the Tobacco Commission’s management “must abide to the approved budget for their planned activities or seek approval from the relevant authorities stipulated in the Public Finance Management Act and other statutory guidelines.”

September 25, 2023

Tag: Malawi