This study was prepared by Dr. Charles S. Mataya and Mr. Ernest W. Tsonga, consultants for the UNCTAD/UNDP project entitled, “Economic aspects of development of agricultural alternatives to tobacco production and export marketing in Malawi”. Their terms of reference are included as an annex to this report.

The project was carried out in furtherance of resolution 1993/79, entitled “Multisectoral collaboration on tobacco or health”, of the Economic and Social Council of the United Nations (ECOSOC). Besides expressing concern about the serious health consequences of tobacco use, the resolution also expressed concern about the possible economic effects of reduced tobacco production in the tobacco-producing countries, which are still unable to develop viable economic alternatives to tobacco production. Paragraph 7 of the resolution called for assistance with development of agricultural alternatives to tobacco as follows:

“Invites Member States and organizations of the United Nations system to develop a range of options, including bilateral and effective multilateral collaboration on agricultural diversification or development of other economic alternatives to tobacco agriculture, as appropriate, to assist economies for which tobacco is a major export, where demand for their tobacco products has decreased as a result of successful strategies for tobacco control.”

Subsequently, ECOSOC resolution 1994/47 reiterated the need to address all the issues raised in resolution 1993/79, with national plans of action to be developed, upon request, taking into account the economic and social aspects of tobacco production and consumption and the serious health consequences of tobacco use.

The project was requested by the Government of Malawi and was implemented by the UNCTAD secretariat with financial and administrative support of UNDP/Malawi.

Chapter I of the report was prepared for the First Expert Workshop under the project, which was held on 11 March 1999 to review the consultants’ assessments of previous research and make plans for carrying out their study. After the consultants completed the study, the Second Expert Workshop, held on 21 and 22 July 1999, considered its findings on diversifying beyond tobacco, identification of limiting factors and proposals for future policy, strategies and institutional options. The Second Expert Workshop adopted the recommendations in chapter III on diversification out of tobacco production and export marketing in Malawi.