Malawi’s tea sector is facing a mixed bag of fortunes. While output plunged by 25% in the second quarter, falling to 13.4 million kg from 18.2 million kg in the first quarter, earnings from exports unexpectedly climbed. The latest data from the Reserve Bank of Malawi (RBM) shows that foreign exchange earnings from tea increased to $1.8 million from $1.6 million in the same period last year.
This uptick in revenue, despite the sharp drop in production, was driven by a notable increase in sales volumes, highlighting the industry’s resilience in the face of seasonal challenges. According to the RBM’s Financial and Economic Review, tea sales rose to 1.6 million kg in the quarter, up from 1.4 million kg in the preceding quarter.
Seasonal Dip and Strategic Shifts
The Tea Association of Malawi attributes the production decline to the country’s typical weather patterns. Tonda Chinangwa, the association’s chief executive, explained that the second quarter is usually a dry period, which reduces tea output. “Production is typically higher in the first quarter, then drops during the second and third quarters, before picking up again in the fourth quarter. This pattern is mainly driven by rainfall distribution,” he said.
However, the tea industry is not just relying on the weather. Stakeholders are working on initiatives to improve output and productivity. Beatrice Makwenda, a program officer at Trust Africa, noted that the industry is “decisively working towards improving both production and productivity by strengthening smallholder institutions and creating a conducive environment for social dialogue.”
Makwenda added that these changes in industry practices, combined with research into modern varieties and technologies, will lead to ethical tea production. This will not only sustain current markets but also unlock new opportunities, reinforcing tea’s role as Malawi’s second-largest foreign exchange earner after tobacco.
Economic Contribution
Tea is a vital part of Malawi’s economy, contributing about 8% of the country’s foreign exchange earnings and 11% of national employment, with the industry supporting some 60,000 workers. The focus on improved trade and production is seen as a viable alternative to aid and development assistance, according to Tea Association chairperson Sangwani Hara. This strategic pivot towards enhanced trade underscores the sector’s long-term vision to strengthen its economic footprint and secure a more sustainable future.
