China to Buy Malawi Tobacco

Source from:  BY DICKSON KASHOTI - 11 March 2008 03/14/2008

MALAWI'S new found friend, Mainland China says it is finalising modalities on how to import Malawi tobacco as a way of boosting the country's economy. Fan Gwinjins, Mainland China ambassador designate to Malawi told journalists Monday in Lilongwe that soon his country would sign an agreement with the Malawi government on tobacco exportation. "Tobacco is very important. We in China have our own laws and rules governing the importation of tobacco. Once we finalize this, we will import the Malawi tobacco," said Gwinjins. He, however could not tell whether the importation would start this tobacco season, saying there are procedures to be followed before the agreement is signed. Tobacco is the largest foreign exchange spinner for Malawi; therefore if China imports Malawi leaf, this would boost the economy. This announcement comes barely a day after government announced that burley tobacco will now be selling at a minimum of US$1.61 (K231) from last year's US$1.21 K174) representing a 33 per cent rise in price. Flue cured tobacco will be selling at a minimum price of US$2.20 (K316). There was no minimum price for flue cured tobacco last year but its average selling price was US$1.73 (K242). Malawi's Foreign Affairs and International Cooperation Minister Joyce Banda said her government recognizes that there is but one China in the world. "…The government of the People's Republic of China is the sole legal government representing the whole of China and that Taiwan is an inalienable part of China's territory," said Banda. Lilongwe and Beijing agreed to establish diplomatic relations between the two capitals at ambassadorial level as from December 28, 2007. Banda said out of 53 countries in Africa, Taiwan has relationship with four countries only whilst the rest have diplomatic relationship with Mainland China including Malawi's neighbours and economic allies of Mozambique, Tanzania, Zimbabwe, Zambia and South Africa. Enditem