Item added to your cart
The Tobacco Industry in Mozambique
Mozambique’s tobacco industry forms part of its agricultural sector and 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. 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.
The government is drafting an updated Strategic Plan for Agrarian Sector Development to transform the agricultural sector from predominantly subsistence to a more competitive one. It is also looking to boost investment in the sector through six corridors, which it runs in partnership with private investors. Recent large natural gas deposits discovered in the north hold much promise for the economy, which has been improving but is characterised by a lack of diversity, with the agriculture sector accounting for about 30% of GDP and around 72% of the labour force.
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.