MALAWI
TOBACCO IN MALAWI
Brief contextualization of the importance of Tobacco in Malawi
CONTRACT
% of contract farming on total salesalawi’s economy is heavily reliant on the primary sector, namely agriculture. Agriculture provides livelihood to over 90% of the population and represents 29% of the Gross Domestic Product (GDP) of the country. Malawi, the leading Burley producer, is the country that most depends on tobacco for foreign currency earnings (59%), according to the latest figures. The crop has been produced in the country since 1893. Burley tobacco leaf produced in Malawi has a good reputation and as such is in high demand. The tobacco industry is one of the most well organized in the country, with a supply chain well defined from production to export, thus aiding the popularity of the crop. There have been further pressures to diversify from tobacco into other possible crops. However, the lack of a supply chain, like the one the tobacco industry has in place, difficults the process. The country sold US$ 78 million of tobacco products, generating US$ 10 million in Government revenue.
Sources: Malawi Government, KPMG, UN Comtrade, FAO, Euromonitor International, Institute for Agricultural Economics, Tobacco and Nicotine Database and ITGA.
Malawi is the country that is more heavily dependent on tobacco. The nation is the 2nd largest African tobacco producing country
EXPORT PARTNERS
This section aims at identifying the most important commercial partners in terms of Value and Quantity (Source: Calculated from data from UN Comtrade)
-
BELGIUM 37%
-
EGYPT 9%
-
GERMANY 8%
-
CHINA 7%
-
ITALY 4%
-
OTHERS 35%
-
BELGIUM 33%
-
EGYPT 10%
-
GERMANY 9%
-
RUSSIAN FEDERATION 6%
-
POLAND 6%
-
OTHERS 36%