Chinese investors examine country’s tobacco, market

A 23-member Chinese delegation of investors examined the country’s tobacco at the Lilongwe Auction Floors on Friday as momentum gathers around potential import deals.

Their arrival last week has excited the Tobacco Commission (TC) with its chief executive officer Joseph Chidanti Malunga signalling that an agreement would be on the cards after the investors were impressed with product and marketing structures.

His declaration followed closed discussions with the investors who have expressed interest to buy the leaf, the country’s chief foreign exchange earner.

Said Malunga: “They are very impressed. Our system is very organised. One of the most organised markets in the world. That is why everyone is excited about the tobacco market in Malawi.”

He hinted that their engagement focused on enlightening the investors how they can join the tobacco market.

Malunga said: “I would not say everything we discussed, but what I can say is that there is a lot of interest now for Malawi tobacco.

“Many come to ask what they can do and at what time they can enter the market. What are the systems? What is it that they need to do for them to become part of the process?”

He could not disclose when the investors would enter the market. In 2018, TC signed an agreement with a Chinese firm, Tobacco Monopoly, to supply Asian nation with tobacco.

But according to the commission, they were not able due to suspensions of Malawi Leaf operations which were central to the deal.

Recently, a TC delegation travelled to China to engage in discussions with potential buyers in Hunan Province where the Chinese delegation came from.

China is the world’s largest producer of cigarettes and primarily serves the huge domestic market, according to https://tobaccotactics.org.

One of the farmers Nation on Sunday interviewed at the auction floors, John Phiri, said he was pleased that TC was courting more investors.

He was optimistic that increased demand improves price of the leaf which generates 60 percent of the country’s foreign exchange earnings