• Malawi tobacco earnings hit record $540 million in 2025
• Export volumes surged, offsetting decline in average prices
• 2026 outlook cautious as supply expected to exceed demand

Malawi's tobacco sector earned a record $540 million during the 2025 marketing season, up from $394 million a year earlier, Telephorus Chigwenembe, spokesperson for the Tobacco Commission, said.

According to Reuters, the record was driven by a 66% surge in export volumes to 221,000 metric tons from 133,000 tons the previous year. The increase more than offset a drop in tobacco prices. As output remained high and demand softened, the average price fell to $2.45 per kilogram in 2025 from $2.98 in 2024.

The 2026 season, set to open on April 20 and run through August, is expected to be cautious, with supply likely to continue outpacing demand.

Production is forecast at 197,000 tons against demand of around 170,000 tons, Chigwenembe said. Average prices could fall further, weighing on a sector that accounts for 50% of the country's foreign exchange earnings and 15% of GDP.

Espoir Olodo