Egypt to Construct Two Tobacco Processing Factories

Source from:  Malawi News Agency 04/23/2015

The Egyptian government says it will construct two tobacco processing factories in Malawi as a way of supporting the tobacco industry in the country.

The Egyptian Ambassador to Malawi, Maher El-Adawy disclosed this in an interview with Mana on Tuesday in Lilongwe.

El-Adawy said his government plans to construct the tobacco factories in Malawi as way of supporting the economic growth of the country, because tobacco is regarded as the main forex earner for the country.

"We have always been in a good relationship with Malawi and we are happy to support it especially in the tobacco industry because we know that tobacco is the main forex earner and by doing so we will help the country's economy to grow," he said.

The Ambassador said the construction of the two factories will not only assist in strengthening the economic base of Malawi, but also in job creation.

"We believe the construction of the two factories will also create employment for some quarters of the Malawian society thereby helping them to improve their lives," said El-Adawy.

According to the Ambassador, one factory will be constructed in Lilongwe, while the designation place for the second factory will be decided by government.

El-Adawy said the construction of the two factories is expected to commence soon.

Commenting on the issue, Minister of Information, Tourism and Culture, Kondwani Nankhumwa described the plan as a step in the right direction.

"We are happy and very grateful for the news as government, because as you have been aware, this government has been emphasizing much on investing into the agriculture industry because it is the backbone of our economic growth and this is one step towards that," said Nankhumwa.

He added, "Much of our tobacco is exported for processing because we do not have the capacity to do so. So by having these two tobacco processing factories, Malawi will start processing the tobacco on its own and sell the products on our own for a profit."

A recent World Bank report, indicates that 90 percent of Malawi's tobacco is exported to other countries for processing, concurring with what Nankhumwa said.

Malawi is one of the top ten producers of tobacco in the world, which accounts for most of Malawi's agricultural export earnings. Enditem