Mkwawa Tobacco Processors Limited to bring revolution, increase productivity in the tobacco sector

Tobacco is one of the leading cash crops in the country, playing a sig­nificant role in employment, foreign income, and social development. This sector has a long history, offi­cially beginning during the colonial period and continuing to grow after independence.

Tobacco farming is mainly car­ried out in the Western and Central regions of Tanzania, including the regions of Tabora, Iringa, Kigoma, Mbeya and Singida. Smallholder farmers are the primary producers of tobacco, farming under a cooper­ative system or through contracts with purchasing companies.

The tobacco sector contributes greatly to Tanzania’s economy. According to statistics, tobacco is among the crops that significantly contribute to foreign income.

Additionally, this sector provides employment for millions of people, including farmers, workers in pro­cessing factories, and those involved in transportation.

Despite its significant contribu­tion, the tobacco sector faces several challenges. One of these challenges is the fluctuating global market price of tobacco, which affects farmers.

The government and stakeholders in this sector have been making vari­ous efforts to address these challeng­es. One strategy is to encourage the use of better technology in tobacco farming to increase production and improve the quality of the crop.

One of the major stakeholders in the tobacco sector in the country, which has made and continues to make great efforts to revolution­ize this sector, is the Mkwawa Leaf Tobacco.

Mkwawa Leaf Tobacco has brought about significant changes in the tobacco sector in the country by providing new employment oppor­tunities, and this factory has had a substantial impact on the economy, especially for tobacco farmers by bringing about positive changes to farmers.

By establishing better infrastruc­ture and modern processing tech­nologies, this entity has improved the quality of products and increased the value of tobacco produced in the country.

Mkwawa Leaf Tobacco through the Mkwawa Tobacco Processors Limited (MTPL) has brought about employment currently having 5,000 including the expansion to pro­cess 180,000 MT from the current 70,000 MT.

In order to diversify the market adding a local cigarette component to the International piece for sus­tainability purposes, Mkwawa Leaf Tobacco has begun implementing a project to construct a large Serengeti Cigarette Company (SCC) located in Morogoro.

With the planned 10 lines SCC plant is expected to maximize employment to 7,000, transform­ing Morogoro region into a leading source of income both foreign and local.

The launch of this factory took place on August 6, 2024, with the guest of honor being the President of the United Republic of Tanzania, Samia Suluhu Hassan.

Speaking at the factory’s ground­breaking ceremony, President Samia said the factory is very impor­tant to the nation and the govern­ment because it will create jobs for young people.

“MTPL currently has 5,000 work­ers, and when this cigarette facto­ry is completed, employment will increase to over 12,000. This is a significant employments opportu­nities for our young people, and we are very grateful to the investors,” said President Samia.

She said the factory will also increase tobacco exports, helping to raise incomes for tobacco farmers due to the increase in the price of tobacco from $1.4 to $2.4 per kilo­gram.

President Samia said the invest­ment made has empowered tobacco farmers and motivated them to grow the crop. “This investment allows tobacco farmers to sell everything, from the leaf itself to the roots and leaf joints, which are processed here in the country through MTPL.”

President Samia also urged the factory to support farmers and encouraged them to join the gov­ernment’s efforts in environmental conservation, especially in produc­tion activities.

The Minister of Agriculture, Hus­sein Bashe, said the investment in the factory, valued at $300 million, will increase the jobs generated in the tobacco sector in Morogoro Region from 5,000 to 12,000. Tobac­co production will increase to reach 300,000 tons per year, and the value of tobacco exports will reach $700 million.

“Through the SCC, we have agreed with four major companies worldwide to come and do ‘blending’ their cigarettes for export to their countries, so we thank you for your guidance and efforts to improve the tobacco sector in the country,” said Bashe.

For his part, the owner and CEO of MTPL and SCC, Ahmed Huw­el, said the investment being made in these factories is significant. He also thanked the sixth-phase gov­ernment for creating a conducive investment environment in the country.

“This major expansion of MTPL and the construction of SCC is a result of the favorable investment environment established by the gov­ernment, so we thank you, and we also have great confidence in your leadership and all the ministers,” said Huwel.

Huwel said the factory is Tanza­nian-owned, with the tobacco pro­cessed being grown by Tanzanians, contributing to adding value to the crop and improving the lives of tobacco farmers in the country.

The construction of the Serengeti Cigarette Company makes Tanza­nia the second country in Africa to have such a factory owned by locals and using locally produced raw materials.