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    The Tobacco Industry in Mozambique 2026

    Charles Chinya | Mozambique | 13 April 2026

    The Tobacco Industry in Mozambique 2025

    Charles Chinya | Mozambique | 16 January 2025

    The Tobacco Industry in Mozambique 2020

    Stephen Timm | Mozambique | 24 February 2020

    Report Info

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    Report Coverage

    This report on the Mozambican tobacco industry examines the full value chain, from cultivation and processing to the manufacture and marketing of raw leaf and finished tobacco products. It provides information on production volumes, key trends, and trade, and highlights key challenges and opportunities. In addition, the report reviews regulatory developments and broader influencing factors, including the economic environment, labour dynamics, technology, input costs, and environmental considerations, as well as unforeseen disruptions such as the Middle East crisis. The report also addresses British American Tobacco’s pending exit from Mozambique and profiles four major industry players, including Mozambique Leaf Tobacco.

    Introduction

    • Mozambique ranks among the largest tobacco-growing countries in the world and is the fourth largest producer of raw tobacco leaf in Africa.
    • In 2025, tobacco leaf output fell by 22% to 72,380 tonnes (t) from 92,343t in 2024. Despite this decline, exports rose by 16% to US$258.3m from US$217.2m in 2024, reflecting strong demand.
    • Expansion of tobacco production capacity is constrained by climate-related risks, including droughts, floods, and cyclones, coupled with high input costs and inadequate infrastructure.
    • The domestic cigarette manufacturing industry faces significant uncertainty due to the planned exit of British American Tobacco.
    • Alternative products such as e cigarettes (vapes), heated tobacco, and oral nicotine pouches are beginning to emerge, though uptake remains limited compared with traditional cigarettes.

    Trends

    • Conventional cigarettes and hand rolled tobacco continue to dominate the market, with limited adoption of e cigarettes, heated tobacco products, and oral nicotine pouches.
    • Despite production volatility, tobacco leaf remains a key export-oriented cash crop that supports rural livelihoods.
    • Limited domestic value addition remains a key constraint.
    • Mozambique remains a competitive low-cost tobacco producer, but the industry is sensitive to harvest fluctuations and export demand.
    • Mozambique’s cigarette excise taxes remain among the lowest in southern Africa.
    • Smallholder contract farmers remain highly dependent on large buyers and global market conditions.
    • Smoking prevalence among people aged 15 years and over continues to decline.

    Opportunities

    • Conversion of tobacco biomass into biofuels.
    • Craft cigar manufacturing.
    • E-waste recycling, focusing on vapes and other smokeless electronic delivery systems.
    • Establishing tobacco seedling nurseries.
    • Manufacturing cigarettes and hand-rolled tobacco for the domestic market.
    • Providing eco-friendly curing facilities.
    • Providing specialised drying, curing, and processing services.
    • Supplying e-cigarettes and other smokeless alternatives.
    • Tobacco based biopesticides.

    Challenges

    • Climate shocks, including severe flooding and cyclones, affect yields and cause damage to infrastructure.
    • Geopolitical risks and supply chain disruptions.
    • Inadequate infrastructure, including underdeveloped transport networks, hinders logistics, trade, and production.
    • Limited local beneficiation.
    • Shortage of technical and managerial skills.
    • Smallholder tobacco farmers have limited access to credit.
    • The burgeoning illicit cigarette trade.

    Outlook

    • Mozambique’s tobacco industry is entering a decisive period of transition. The closure of British American Tobacco’s cigarette factory is expected to create openings for new players, but also risks disrupting established supply chains, potentially fuelling a surge in illicit cigarette trading.
    • Climate variability, particularly erratic rainfall, floods and cyclones, poses a significant threat to smallholder leaf production, amplifying the vulnerability of rural communities.
    • The new Tobacco Control Law, which comes into effect on 31 December 2025, aims to strengthen regulation of the sector and may slow the expansion of alternative nicotine and tobacco products.
    • Despite trade and logistics disruptions triggered by the Middle East crisis, analysts anticipate that foreign demand for Mozambican tobacco leaf will remain strong.
    • The sector’s growth outlook will depend on its ability to balance regulatory compliance, climate resilience, and illicit trade control with proactive investment in manufacturing capacity and product diversification.

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    The Tobacco Industry in Mozambique
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    R 1 900.00(ZAR) estimated $115.99 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    3. DESCRIPTION OF THE INDUSTRY 4
    3.1. Industry Value Chain 5
    3.2. Geographic Position 6
    3.3. Size of the Industry 7
    4. LOCAL 10
    4.1. State of the Industry 10
    4.2. Key Trends 12
    4.3. Key Issues 13
    4.4. Notable Players 13
    4.5. Trade 14
    4.6. Corporate Actions 16
    4.7. Regulations 16
    4.8. Enterprise Development and Social Development 17
    5. AFRICA 18
    6. INTERNATIONAL 25
    7. INFLUENCING FACTORS 31
    7.1. Unforeseen Events 31
    7.2. Economic Environment 32
    7.3. Labour 35
    7.4. Environmental Issues 36
    7.5. Technology, R&D, Innovation 37
    7.6. Government Support 37
    7.7. Input Costs 38
    8. COMPETITIVE ENVIRONMENT 39
    8.1. Competition 39
    8.2. Ownership Structure of the Industry 39
    8.3. Barriers to Entry 40
    9. INDUSTRY SUMMARY 40
    10. OUTLOOK 41
    11. INDUSTRY ASSOCIATIONS 42
    12. REFERENCES 42
    12.1. Publications 42
    12.2. Websites 43
    APPENDIX 1 44
    Summary of Notable Players 44
    COMPANY PROFILES 45
    AFRO TOBACCO COMPANY S.A. 45
    EMPEROR TOBACCO MOZAMBIQUE, S.A 46
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 48
    MOZAMBIQUE LEAF TOBACCO LDA 50

    Report Coverage

    This report on the tobacco industry in Mozambique includes information on production, manufacture and retail, key trends and issues, notable players, trade and regulations. There is also information on major influencing factors such as the security situation, economic environment health and environmental issues and illegal trading. The report includes company profiles of three players including British American tobacco, Mozambique Leaf Tobacco and Afro Tobacco Company.

    Introduction

    • The industry is dominated by British American Tobacco and Mozambique Leaf Tobacco.
    • Mozambique’s government considers the industry a major contributor to job creation and the provision of economic opportunities to the rural population.
    • Nearly all tobacco is produced by smallholder farmers.
    • Tobacco is mostly grown in a concessionary system, with Mozambique Leaf Tobacco holding the majority of concessions.
    • Production has been highly volatile.
    • While demand for tobacco from traditional global markets is declining, Asian and African demand has been growing.
    • Leaf sourcing is moving to low-cost producing countries, making source markets like Mozambique attractive to investors.
    • Despite the potential to increase production, climate change conditions such as droughts, floods, and cyclones, high prices of inputs and poor infrastructure can affect production.

    Trends

    • An increase in tobacco sales revenues.
    • Growth in tobacco exports.
    • The concession system provides smallholder farmers with a market to sell their tobacco.
    • The introduction of seal (fiscal) stamps on tobacco products, to reduce illicit cigarettes.
    • There is potential for increased tobacco production.

    Opportunities

    • Adequate suitable arable land for tobacco production.
    • The vaping and e-cigarette industry is largely untapped.
    • Unmanufactured tobacco is exempt from export taxes.

    Challenges

    •  High input prices as most are imported.
    • High electricity rates and unreliable electricity availability.
    • Most small-scale farmers have limited access to credit and often cannot afford production inputs.
    • Mozambique is a conduit route for illicit cigarette trade.
    • Poor infrastructure.
    • Production can be affected by droughts and adverse wet conditions.
    • Shortage of management and technical skills.

    Outlook

    • Mozambique has implemented smoke-free restrictions and health warnings but has yet to implement full tobacco controls.
    • Tobacco continues to be an important economic commodity that creates seasonal job opportunities and supports smallholder tobacco farmers.
    • Tobacco sales revenues are forecast to grow steadily.
    • Drought, flooding and cyclones highlight Mozambique’s vulnerability to climate change hazards which can affect tobacco production growth.
    • Other factors such as political security and poor infrastructure all have a bearing on tobacco production.

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    R 9 500.00(ZAR) estimated $579.95 (USD)*

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    R 6 650.00(ZAR) estimated $ 405.97 (USD)*

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    Historical Reports

    The Tobacco Industry in Mozambique 2026-04-13

    R 20 000.00(ZAR) estimated $1220.95 (USD)*

    View Report Add to Cart

    The Tobacco Industry in Mozambique 2020-02-24

    R 1 900.00(ZAR) estimated $115.99 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    3. DESCRIPTION OF THE INDUSTRY 4
    3.1. Industry Value Chain 5
    3.2. Geographic Position 6
    3.3. Size of the Industry 7
    4. LOCAL 8
    4.1. State of the Industry 8
    4.2. Key Trends 11
    4.3. Key Issues 11
    4.4. Notable Players 11
    4.5. Trade 12
    4.6. Regulations 14
    4.7. Enterprise Development and Social Development 14
    5. AFRICA 15
    6. INTERNATIONAL 19
    7. INFLUENCING FACTORS 22
    7.1. Unforeseen Events 22
    7.2. Security Situation 22
    7.3. Economic Environment 23
    7.4. Labour 24
    7.5. Environmental Issues 25
    7.6. Health Issues 26
    7.7. Technology, R&D, Innovation 26
    7.8. Government Support 27
    7.9. Input Costs 27
    7.10. Illicit Tobacco Trade 28
    7.11. Corruption 28
    8. COMPETITIVE ENVIRONMENT 29
    8.1. Competition 29
    8.2. Ownership Structure of the Industry 29
    8.3. Barriers to Entry 29
    9. INDUSTRY SUMMARY 30
    10. OUTLOOK 30
    11. INDUSTRY ASSOCIATIONS 31
    12. REFERENCES 31
    12.1. Publications 31
    12.2. Websites 31
    ANNEXURE 1 33
    Industry Legislation 33
    APPENDIX 1 34
    Summary of Notable Players 34
    COMPANY PROFILES 36
    AFRO TOBACCO COMPANY S.A. 36
    BRITISH AMERICAN TOBACCO P L C (INCORPORATED IN ENGLAND AND WALES) 37
    EMPEROR TOBACCO (PTY) LTD 41
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 42
    MOZAMBIQUE LEAF TOBACCO LTDA 44

    Report Coverage

    This report focuses on The Tobacco Industry in Mozambique and includes latest available information on the state and size of the sector and factors that influence it, including economic and climate factors. There are profiles of four companies including British American Tobacco, which has one of its three southern African plants in Mozambique, and Universal’s Mozambique Leaf Tobacco, which dominates the growing and processing of tobacco. Emperor Tobacco Mozambique, which was setting up a manufacturing facility in Maputo to manufacture its brand Rico, is also profiled as is major distributor JT International South Africa.

    Introduction

    The tobacco industry forms part of Mozambique’s agricultural sector, which contributed 24% of GDP in 2015 (the last year of available statistics), according to statistics from the Ministry of Agriculture and Food Security. Tobacco contributes about a third of total agricultural exports and almost 4% of the value of the country’s total exports of goods and services. The majority of the agricultural sector is made up of subsistence farming, with mostly small family farms growing tobacco alongside other crops. About 130,000 to 150,000 farmers grow tobacco in Mozambique. The industry is dominated by British American Tobacco (BAT) (manufacturing) and Universal’s Mozambique Leaf Tobacco (MLT) (growing and processing). A new cigarette manufacturer set up in Mozambique in 2018, and its effect on the sector is unclear at this stage. Figures are tightly guarded by market players and few in the sector want to comment on the market. While demand for tobacco in traditional global markets has been declining, Asian and African demand has been growing steadily and leaf sourcing is moving to low-cost producing countries, making the Mozambican tobacco sector attractive for investors.

    Strengths

    • Diverse soil types and climatic conditions are suitable for a large variety of crops.
    • The concession system in operation in Mozambique provides smallholders with a market to sell their tobacco to large processors.

    Weaknesses

    • High dependence on foreign aid.
    • Limited access to credit by smallholder farmers.
    • Management and technical skills shortages.
    • Monopsony means farmers are often price takers.
    • Most small-scale farmers cannot afford production inputs such as fertiliser, pesticides and improved seed.
    • Weak infrastructure

    Opportunities

    • About 85% of the country’s arable land is unused.
    • As the country becomes richer more smokers are likely to change to vaping and other perceived healthier tobacco products.
    • There is no immediate move to legalise growing or smoking cannabis in some form, as South Africa and Zimbabwe have done. But this is something to keep an eye on.

    Threats

    • Despite the signing of a peace treaty in August 2019, the threat of violence lingers.
    • Droughts and irregular weather are set to increase with climate change.
    • Pests destroy a large percentage of crops.
    • Smoking prevalence among Mozambicans is steadily declining.

    Outlook

    Tobacco is a promising crop, given expectations of double-digit growth in the prevalence of smoking by 2030. Mozambique’s agriculture sector has plenty of room to grow, given the large percentage of unused arable land. The country has about 36 million hectares of arable land, of which only around 6 million hectares is currently in use. By one estimate just over 1 million hectares of land has been acquired in recent years by investors for farming activities. However, it is uncertain what effect climate change will have on tobacco cultivation which is mainly carried out in the central and north of the country, and which is expected to see higher rainfall and flooding in the near future. It is also unclear how what effect the addition of a new entrant, Emperor, will have on the market. For now, the industry in Mozambique remains highly controlled and dominated by two companies.

    Read More..
    The Tobacco Industry in Mozambique
    The Tobacco Industry in Mozambique 2020

    Full Report

    R 1 900.00(ZAR) estimated $115.99 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 81.19 (USD)*

    Buy Now +

    Historical Reports

    The Tobacco Industry in Mozambique 2026-04-13

    R 20 000.00(ZAR) estimated $1220.95 (USD)*

    View Report Add to Cart

    The Tobacco Industry in Mozambique 2025-01-16

    R 9 500.00(ZAR) estimated $579.95 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. COUNTRY INFORMATION 1
    2.1. Geographic Position 2
    3. DESCRIPTION OF THE INDUSTRY 5
    3.1. Industry Value Chain 5
    4. SIZE OF THE INDUSTRY 7
    5. STATE OF THE INDUSTRY 9
    5.1. Local 9
    5.1.1. Regulations 10
    5.1.2. Enterprise Development and Social Economic Development 11
    5.2. Continental 11
    5.3. International 12
    6. INFLUENCING FACTORS 13
    6.1. Government Support 13
    6.2. Economic Environment 14
    6.3. Technology, Research and Development (R&D) and Innovation 16
    6.4. Labour 16
    6.5. Marketing 17
    6.6. Health Concerns 17
    6.7. Environmental Concerns 17
    6.8. Industry Social Initiatives 18
    6.9. Illicit Cigarettes 19
    7. COMPETITION 20
    7.1. Barriers to Entry 20
    8. SWOT ANALYSIS 20
    9. OUTLOOK 21
    10. INDUSTRY ASSOCIATIONS 21
    11. REFERENCES 22
    11.1. Publications 22
    11.2. Websites 22
    APPENDIX 1 24
    Summary of Major Players 24
    COMPANY PROFILES 26
    BRITISH AMERICAN TOBACCO PLC 26
    EMPEROR TOBACCO (PTY) LTD 30
    JT INTERNATIONAL SOUTH AFRICA (PTY) LTD 32
    MOZAMBIQUE LEAF TOBACCO LDA 34

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