Alliance One Tobacco Tanzania Limited (AOTTL) has paid Sh169.7 billion to tobacco growers and other stakeholders for the 2026 marketing season.
The company said Sh154.2 billion was paid directly to growers for tobacco purchases, while the remainder covered statutory and industry-related payments, including district cess, cooperative union dues, Tobacco Board regulatory and research fees, and council levies.
Speaking during a factory study tour by representatives of the Western Tanzania Tobacco Cooperative Union (WETCU) in Morogoro, AOTTL corporate affairs manager and company spokesperson John Magoti said all grower payments had been completed.
‘Timely payment is critical to growers and their families. It enables farmers to meet household needs, settle production costs, reinvest in farm operations and prepare for the next crop season,’ he said.
Magoti said the company’s supply chain supports more than 100,000 tobacco-growing households, while its grower programmes include contract farming, agronomic support, training and improved tobacco varieties.
AOTTL also operates a 570kWp rooftop solar system at its Kingolwira processing facility and has expanded the use of compressed natural gas (CNG).
The company said it had established about 1,784 hectares of forest plantations under the Joint Forest Management programme in partnership with the Government, communities and other stakeholders. More than four million trees have been planted under the programme, it said.
The company also invests more than Sh500 million annually in community programmes covering education, clean water, environmental conservation and community welfare.
The visiting WETCU delegation said the tour had provided insights into tobacco processing and quality requirements.
WETCU agronomist Walwa Msuka said the visit had highlighted how some processing challenges originate at farm level.
‘Proper crop handling, cleanliness and avoiding contamination with non-tobacco materials are essential in maintaining quality standards,’ he said.
He said the lessons would help strengthen farmer education and extension services to improve tobacco quality.