Tobacco deal struck
By Business Reporter
ZAMBIA and Malawi will soon sign a memorandum of understanding (MoU) which will allow local crop marketing companies to export tobacco to that country, Eastern Province Minister, Isaac Banda has said.
Mr Banda said during a Press briefing in Chipata yesterday that negotiations to facilitate the signing of the MoU between governments of the two countries had reached an advanced stage.
The minister said after signing of the MoU, the Malawian government would open its borders to allow local crop marketing companies that were buying tobacco from Zambian farmers to export tobacco to Malawi.
“A week ago, we addressed tobacco companies after some individuals complained that their tobacco was not being accepted by buyers because of the refusal by Malawi to allow Zambian tobacco to be exported to that country,’’ Mr Banda explained.
Mr Banda said now that the Malawian government would allow to open its borders for tobacco exports, crop marketing companies should involve all farmers that were selling the crop not to concentrate only on those who got loans from them.
He said companies should start asking for more funding from their headquarters in order to buy all the tobacco from farmers, adding that the companies should also offer better prices to encourage farmers to produce more tobacco next farming season.
