Tobacco Asia

68 tobaccoasia Issue 4, 2025 July / August unsustainable over time. Moreover, tobacco prices fluctuate wildly with global demand and weather conditions, leading to foreign exchange shortfalls, import restrictions, and currency devaluation in bad seasons such as drought or global oversup- ply. As Malawi exports mostly raw leaf, there is only low value added. As tobacco dominates pub- lic policy, land use, and research budgets, it stalls broader economic transformation. Around 70% of tobacco is produced by smallholder farmers, many of whom are trapped in cycles of debt and poverty—borrowing input costs for seed or fertilizer is common, while prices in auctions and contract-growing, which accounts for 80% of sales, are unpredictable, and farm- ers lack bargaining power against buyers. A 2021 MwAPATA Working Paper found that poverty rates among tobacco farmers have been rising, indicating that tobacco production is not able to serve as a pathway out of poverty. In light of these factors, diversifying away from tobacco is no longer an option but a strate- gic necessity for building resilience, food security, and long-term prosperity for a country that ranks among the ten poorest nations in the world. The need for a turnaround is even more relevant after Malawi ratified the World Health Organization's (WHO) Framework Convention on Tobacco Control (FCTC) in November 2023, by which it committed itself not only to tobacco control but also to the well-being of its population. Active efforts to transition to other crops Malawi is making active efforts to reduce its de- pendence on tobacco, but they are slow and of- ten fragmented. In January 2021, the government launched Malawi 2063, a long-term national vision aiming to transform Malawi into a wealthy and self-reliant upper-middle-income country by 2063. The vision is implemented through a series of 10- year implementation plans, with the first 10-year plan (MIP-1) covering the period 2021–2030 and promoting a shift towards high-value crops, agro- processing, and industrialization. In line with its agriculture diversification strategy, the Ministry of Agriculture is encourag- ing farmers to grow legumes, such as soybeans, pi- geon peas, or groundnuts; horticultural crops such as macadamia and avocado; and industrial crops like cotton and sugarcane. For farmers interested in alternative crops, government-led programs dis- tribute starter packs, inputs, and training. In March 2025, the finance department an- nounced the relaunch of the Malawi Development Corporation (MDC) to spearhead strategic invest- ments in manufacturing and industry, marking a shift toward a more proactive, state-led industrial approach. The ministry also said it would invest MWK95 billion in irrigation infrastructure that would service over 50,000 hectares of irrigable land and yield 337,000 tons of crops. In addition to government efforts, diversifi- cation has been supported by NGOs and private donors. A major program focused on promoting smallholder agricultural productivity, diversifi- cation, and increased incomes through science, technology, innovation, entrepreneurship, and commercialization is the Centre for Agricultural Transformation (CAT), made possible through five-year (2019–2024) support from Global Ac- tion to End Smoking, with technical support from its affiliate, the Agricultural Transformation Initia- tive (ATI). ATI aims to diversify tobacco-depen- dent economies into other value chains, increase agricultural productivity, and boost smallholder farmer incomes to achieve economic success. As of 2024, the organization stated in its most recent newsletter that it had directly impact- ed over 300,000 smallholder farmers and achieved an 83 percent adoption rate of new technologies for productivity-enhancing practices among target primary producers in its first project phase, CAT I. Smallholder farmers supported by CAT experi- enced nearly a 40% increase in yields within alter- native value chains, the center said. In addition, CAT facilitated the establishment of new buyer– seller relationships for 63% of its smallholder farmers in non-tobacco markets. Working with two main streams—one fo- cused on science, technology, and innovation, and the other on incubation, acceleration, and commercialization—CAT established three so- called smart farms, which are used to explore and showcase, among other things, improved varieties of crops, crop nutrition and protection technolo- gies, farm mechanization, and irrigation technolo- gies. The center also offers innovation and entre- Nixon Lita, c.e.o., TAMA Farmers Trust. Tobacco, unlike the competing crops, is well supported by policy and regulations as it has an act of law specifically to promote the production and trade." —Nixon Lita,TAMA Farmers Trust.

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