JTI persuades Malawi in Tobacco Industry Reformations

Published Date : Jul 29, 2014

JTI Leaf Malawi - Malawi’s leading Tobacco Company partnered with its country’s government in the drive to transform the tobacco industry. It has committed with Malawi Government, its stakeholders, and growers for the same cause. This transformation is alleged to reinforce Malawi’s socio-economic development. 

Malawi’s Minister of Agriculture Allan Chiyembekeza toured the JTI’s offices, and viewed the state-of-the-art facilities and warehousing and processing factories in Kanengo, while Fries Vanneste, company’s Managing Director spoke in the capital. Fries Vanneste added that his company realizes the importance of tobacco industry to the country and therefore, over the years they have made attempts to reform a number of aspects in this industry. They have collectively gathered various policies and regulations that directly cause an impact on the agricultural sector. Due to this, they have mapped out ways to address this issue and provide a win-win situation for government, growers, and other buying companies in the industry. 

JTI is currently into designing a new marketing scheme known as contract farming. It is a Facilitated Farming Scheme that supports Malawi’s tobacco marketing system as the Integrated Production System. This scheme is a healthy way of profiting the growers with different farm inputs through technical guidance and loan financing. Under this scheme, tobacco buyers also agree with the recipients in providing them quantities of tobacco in advance to produce per year. 

The contract farming scheme is a catalyst for promoting agricultural practices, improving quality of product, ensuring farming enterprises, and other social responsibilities.

Minister of Agriculture Allan Chiyembekeza thanked JTI for investing in Malawi. He said this kind of an investment from investors such as JTI is a good sign for the country and its growing economy. The Malawi government is in the pursuit of creating an enabling industrial environment that permits the private sector to expand and flourish.