Malawi Leaf Sales Boost to Economy

Source from:  tobaccoreporter.com Monday, June 12, 2006 06/13/2006

Despite having suffered a difficult selling season, Malawi expects that its leaf tobacco earnings will reach $178 million this year, up 9.8 per cent on those of last season, according to a report by Mabvuto Banda for Reuters quoting the Tobacco Control Commission's general manager, Godfrey Chapola. Malawi's 2005/06 tobacco crop is estimated at 158 million kg, nine per cent more than was produced during the previous season, but seven per cent less than that of the 2003/04 season. Finance Minister, Goodall Gondwe, told Reuters that the earnings increase was encouraging because "we were all scared the [buyer] boycotts would shrink our forex earnings this year." Apparently, Gondwe is forecasting that Malawi's economy will grow by 8.4 per cent and that inflation will fall to 10.9 per cent on account of improved agricultural production. Tobacco accounts for more than 70 per cent of Malawi's export earnings and about 15 per cent of its gross domestic product. Enditem