Malawi 2020 Tea Revitalization Program
Malawi 2020 Tea Revitalization Program
Competitive and sustainable tea industry in Malawi.
Accelerator/Incubator | Malawi | Income/Productivity Growth
Overview
The Malawi tea industry has lost its competitive position as a profitable tea growing country. A combination of poor quality tea, very low prices and heavily seasonal production has led to declining gross margins and an inability for most producers to reinvest sufficient cash back into their business. Capital investment is required to replace aging and lower yielding tea bushes, to upgrade outdated factory machinery, and to invest in irrigation equipment to extend the season. However, the cost of local finance and lack of cash generation from current production hinder the required injection of capital. Furthermore, the producers have been under heavy pressure to pay a living wage to 50,000 tea workers and a living income to 15,000 smallholders. To address the issue of low wages a strong supply chain partnership was formed in which over 20 organizations have committed themselves to work together to achieve a competitive, profitable Malawian tea industry where workers can earn a living wage and smallholders are thriving, by 2020.
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