Forget about cigarette manufacturing plant—JTI

JTI Leaf Malawi has said it is no longer interested in investing in cigarette manufacturing business despite government’s sudden change of heart to have the firm rescind its decision on the matter.

Instead, the tobacco firm has said it is willing to continue investing further in JTI Leaf Malawi operations and not in cigarette business.

JTI Leaf Malawi managing director Fries Vanneste reiterated on the matter in Lilongwe on the sidelines of a two-day media capability building workshop on the Integrated Production System (IPS).

Vanneste was asked to react to Minister of Information, Tourism and Civic Education Kondwani Nankhumwa remarks at the opening of the workshop that the new government intends to re-engage JTI Leaf Malawi to consider a comeback on cigarette manufacturing factory plans.

“His Excellency the President Peter Mutharika has bemoaned the business as usual attitude in government where it takes a maximum of 135 days for an investor to complete the registration process. And so, we must get back to JTI and discuss the modalities on how they can come back and invest in cigarette factory,” he said.

However, reacting to the minister’s sentiments, Vanneste said the tobacco firm is still unmoved by government willingness to have the factory established, saying the firm had already channelled the money that was earmarked for the factory in Malawi to other investments outside the country.

Said Vanneste: “In the meantime, JTI started investing the money in Egypt, Sudan and Belgium. So, the company is still committed to investing in JTI Leaf Malawi. Cigarette manufacturing is out for the time being and we are not looking into that any more, but we are still interested in investing further in JTI Leaf Malawi.”

He said the company is not ready to rescind its decision on the matter at the moment as the issue has to be discussed at higher level in Geneva, the headquarters of the company, for further consideration.

JTI Leaf Malawi, formerly Africa Leaf, wrote and submitted an investment proposal to Malawi Government in October 2010, following government’s interest to have the firm set up a cigarette manufacturing factory.

But since then, government had been dilly-dallying on the matter and feeling frustrated coupled with changing macroeconomic environment in 2012, JTI intensified the exploration of other investment destinations, hence Egypt, Sudan and Belgium.

At a press briefing in Lilongwe last Tuesday, President Peter Mutharika decried the laissez-faire attitude in dealing with investors.