Equip Group

Blantyre is the most expensive city to raise a family in Malawi.

Food alone costs a household around MWK 730,000 a month. That's MWK 120,000 more than Lilongwe, and nearly 30% more than what a family in Mzuzu spends on the same basics. Once you add rent, household items, and school fees, the total cost of a modest family life in Blantyre exceeds MWK 1.19M every month.

The trend is worth watching as a signal of where things are heading.

From seedbed to sale, Malawi's to***co value chain involves farmers, curers, graders, transporters, auction floors, and international buyers with each stage adding (or losing) value depending on how well each stage is managed.

The To***co Control Commission (TCC) regulates it end to end, licensing growers, graders, transporters, floor operators, and buyers.

At the auction floor, international buyers hold pricing power, especially in a season like 2026, where supply is outrunning demand.

The to***co leaf is exported in a semi-processed state, to be finished and packaged as the final product outside of Malawi.

The long term conversation should be whether Malawi can one day manufacture to***co products within the country to maximize on the benefits of the full value chain.

Ministry of Industrialization, Business, Trade & Tourism - Malawi | The To***co Commission | NASFAM

***co

Malawi's to***co buying season opened on April 20th at Kanengo Auction Floors in Lilongwe. In the first week, 2.2 million kg was sold at an average price of $2.13/kg, generating $4.8 million.

This would be considered a slow start considering the 2025 season was a record year. Malawi sold 221 million kg and earned $542 million, a 37% increase from the 2024 season. Despite the record revenue, the price farmers received per kilogram was fell. That trend is continuing in 2026.

This season, Malawi is expected to produce 197 million kg of to***co. Buyers have indicated purchasing needs of 170 million kg. That leaves a surplus of 27 million kg with no guaranteed buyer, which puts further downward pressure on prices. When supply exceeds demand, sellers lose bargaining power.

The volume is impressive. The value story is more complicated. Will the per kg value to***co continue its downward trajectory through the 2026 season?

Ministry of Industrialization, Business, Trade & Tourism - Malawi | The To***co Commission | NASFAM
***co