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Agriculture

Update: Tobacco Earnings Plunge as Government Audits K20 Billion Irrigation Project

Friday, May 22, 2026
Photo: Malawi24

Update: Malawi's tobacco sector is facing major challenges as earnings dropped by K15 billion in the first four weeks of the 2026 marketing season, according to Malawi24. The revenue decline is driven by low prices and a persistently high rejection rate that has reached 91 percent for auction tobacco. Furthermore, local farmers testifying before the Parliamentary Committee on Agriculture alleged severe pricing discrimination at the Limbe Auction Floors. According to Nyasa Times, farmers claim white-owned commercial farms receive up to $4.80 per kilogramme while local smallholders are paid as little as $0.60 per kilogramme for comparable leaf.

In an effort to reduce the country's reliance on imported agricultural inputs, a local enterprise called Wait Holdings has launched a new fertiliser blending plant in Blantyre, Nation Online reports. Operating under the MlimiFert brand, the facility has a production capacity of 50 metric tonnes per hour. Managing Director Irene Mlundira announced that the company is investing an additional $5 million to expand blending capacity and distribution for its soil-specific nutrient products.

Meanwhile, the Supreme Court of Appeal has upheld a High Court order directing the state-owned Smallholder Farmers Fertiliser Revolving Fund of Malawi to pay K18.5 billion to 30 business operators for breach of contract, according to Nation Online. The court dismissed the fund's application to halt the execution of the judgement, noting that general damages are still to be assessed.

In government action, the Ministry of Agriculture has launched a forensic audit into K20 billion spent on the Nthola-Ilola Irrigation Scheme in Karonga District. Nation Online reports that Minister of Agriculture Roza Fatch Mbilizi toured the site and stated that the project has shown little physical progress despite the massive investment. An additional K17 billion required to complete the reservoir and irrigation systems will be withheld until the audit is finalised.

Sources

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