TOBACCO RAKES IN $542 MILLION

 

Malawi has record $542.2 million from tobacco sales this year, marking a significant jump from $396.9 million realised in 2024.

This represents a 36.6 percent increase in earnings from the green gold.

This is according to final figures released by AHL Tobacco Sales Limited on its X page following the closure of the Mzuzu market on November 28.

In perspective, Malawi’s import bill was recorded at $300.9 million in August 2025, which means the $542.2 million earned from tobacco this year would cover approximately 54 days of imports at that month’s levels.

The cumulative volume sold in 2025 reached 221.8 million kilograms (kg), far exceeding the 174 million kg projected by the Tobacco Commission (TC) earlier this year.

This represents a 66 percent increase from the 133.4 million kg sold in 2024.

The average price per kg, however, dropped to $2.45 from $2.98 last year, reflecting a shift in market dynamics despite the higher earnings.

AHL Tobacco Sales General Manager Graham Kunimba confirmed that all the tobacco from the Northern Region had been cleared by the final day, with Alliance One Tobacco, Limbe Leaf Tobacco and Africa Tobacco Services mopping up the remaining bales.

“We closed the last market which is Mzuzu market on November 28, 2025 but the rest of the markets were closed a long time back. As far as we are concerned all the remaining tobacco was bought and there were no farmers who claimed their tobacco was yet to be bought,” Kunimba said.

Acting Chief Executive Officer of the Tobacco Commission Evans Chilumpha attributed the bumper crop to favorable weather conditions and improved prices in the previous season, which motivated growers to plant more tobacco.

“We expected 174 million kilograms but we have more than 220 million kg. We cannot rule out the issue of cross border smuggling. At some point our crop was smuggled out, but we also saw tobacco coming back into Malawi hence the increased figures,” Chilumpha said.

While officials maintain that the surge was largely weather-driven, speculation is rife that vendors smuggled tobacco from Zambia and Mozambique into Malawi after neighboring countries closed their markets earlier.

The rumor mill suggests this influx may have artificially inflated Malawi’s volumes, raising questions about traceability and regional trade enforcement.

Tobacco remains Malawi’s main export crop and foreign exchange earner.

Reported by: Chimwemwe Mangazi

Source: (Times Group) tobacco-rakes-in-$542-million


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