The implementation of reforms at the Tobacco Commission is bearing fruits giving us hope for greater efficiency in promoting the production and marketing of tobacco in Malawi.
Reforms turned around our financial performance having earned a K325million profit in 2021.
In the previous year, we recorded an K81million loss but sound financial management measures that we put in place helped us avoid another loss in the 2020/2021 financial year.
When we reported this to him Monday this week, Vice President Dr Saulos Chilima who is also responsible for public sector reforms was impressed.
We reported on progress of reforms we have implemented between March 2021 and February this year.
In the 2019/2020 financial year, our revenue came to K3.6 billion but we recorded a loss of K81million.
However, by the end of the 2020/2021 financial year, our revenue was at K3.5billion but we recorded a K325 million profit.
This enabled us to remit 20% of the surplus to Government.
This makes us one of the few parastatal organisations that are recording profits in the country.
As a Commission, we operate without government subvention and we generate revenue from statutory levies.
The turn in our financial position came about because of reforms.
When we met Vice President Dr Saulos Chilima, we covered five reform areas – the strengthening of the regulatory framework; enhancement of tobacco production and marketing integrity; the improvement of stakeholder understanding of the Commission’s mandate and roles; improvement of financial sustainability; and the strengthening of institutional capacity.