Mutharika says WHO FCTC Serious Threat to Tobacco Production: Commends JTI for Commitment to Support Tobacco Industry
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| President Mutharika his Vice and Minister of Agriculture |
President Professor Arthur Peter
Mutharika says tobacco production is still facing a lot of challenges and key among
them is the issue of the anti-smoking lobby spearheaded by the World Health Organization
Framework Convention on Tobacco Control (WHO FCTC) in order to safeguard human
health.
He says Anti smoking
lobby has had and will continue to have negative effects on demand for tobacco
world-wide and may therefore seriously affect Malawi’s foreign exchange
earnings and the livelihoods of tobacco farmers.
“The WHO
FCTC is a serious threat to tobacco production since it restricts demand and
supply of tobacco products through various strategies, which include
restrictions on marketing and consumption of tobacco products.” Said President
Mutharika when opening JTI’s new Factory Warehouse Extension and Factory Line
Upgrade Project in Lilongwe
“My
Government is concerned with this development” he said, “but Malawi cannot stop
overnight growing tobacco. We will continue growing tobacco based on trade
requirements until when there is no demand.”
He however said his government will continue
seeking other alternatives such as Green Belt Initiative, Cotton
Up-scaling Programme, and Oilseeds Promotion Programme, a well as encouraging farmers to
transition and switch from
tobacco to other economically
viable enterprises.
President Mutharika further commends JTI
for initiating investment that promises future of tobacco industry in Malawi
and promised that his government is committed
to passing a new laws that support sustainable growing and selling of tobacco,
which will protect the livelihoods of the country’s millions of smallholder
growers including creating conducive environment for business of tobacco
companies.
Tobacco contributes 60% of foreign exchange earnings to Malawi.
Paul Neumann, Senior Vice President of JTI said
the new warehouse and substantial upgrades to their tobacco processing line at
their site in Lilongwe, is worth more than 5 billion Kwacha and it is JTI’s long-term
commitment to the future of tobacco in Malawi.
“Seeing people develop as they learn new
techniques in management, contribute to the development of our long-term
business strategy, and bring online sophisticated IT projects, makes me
confident that JTI is bringing Malawians, and Malawi, further onto the stage of
international business.” He said
“That future is bright, but seems at
times a long way off. I believe that we are on a journey towards that horizon,
together.”
He said JTI apart from continuously supporting its
business in Malawi through targeted social and economic investments the company
is improving the lives of not only individuals, but of entire communities in order
to boost mutual success.
He also mentioned that JTI’s long-term focus on
four basic areas among them preserving tobacco growing and related businesses, demonstrate
Social and Environmental leadership, and maintain close relationships with
growers to achieve a stable long-term supply of tobacco leaf is key to future
shared prosperity.
He said the company is convinced that Malawi
is a great place to invest because of mutual desire that exists in this area
and added that for the past four years JTI invested over 400 million dollars with
foreign currency and buying of the leaf apart from other investments in social
responsibility and programs on ending child labour.
JTI Malawi operations employ more than 1
300 people and works directly with over 11 000 growers, and after some years since
the company terminated its plans to build a cigarette manufacturing plant in
the country following government administration delays Mr. Neumann firmly said
that their business model does not support such investment now but JTI is not
done with other kinds of investments in Malawi.
The newly built warehouse adds additional
storage area equivalent to more than two football pitches, while the upgrades
to the processing plant (threshing) enhance quality, productivity and safety.
