ALLIANCE One Tobacco Tanzania Limited (AOTTL) has fully settled 169.7 billion Tanzanian shillings (approximately 64.7 million U.S. dollars) to tobacco growers and stakeholders for the 2026 marketing season, according to a statement released after a factory study tour in Morogoro. Of this amount, 154.2 billion shillings (58.7 million U.S. dollars) was paid directly to farmers for tobacco purchases, with the remaining funds allocated to statutory and industry-related expenses, including district cess, cooperative union dues, and regulatory fees. The payment completion was highlighted by AOTTL Corporate Affairs Manager and Spokesperson Advocate John Magoti during a visit by representatives of the Western Tanzania Tobacco Cooperative Union (WETCU), emphasizing the company’s commitment to transparency and sustainability in the tobacco value chain.
Magoti stated that timely payments are vital for farmers to meet household expenses, cover production costs, and reinvest in agricultural operations. AOTTL supports growers through contract farming, agronomic training, and access to improved tobacco varieties to enhance productivity and resilience against climate and disease challenges. The company’s supply chain directly benefits over 100,000 households, contributing to rural livelihoods and economic growth. Additionally, AOTTL has invested in renewable energy, operating a 570-kWp solar power system at its Kingolwira facility and increasing use of Compressed Natural Gas (CNG) to reduce environmental impact. The company has also established 1,784 hectares of forest plantations under the Joint Forest Management (JFM) program, planting over four million trees to support forest restoration and sustainable wood fuel supply.
Under the Tobacco Afforestation Programme (TAP), AOTTL collaborates with growers and primary societies to promote tree planting and sustainable land management, alleviating pressure on natural forests. The company allocates over 500 million shillings annually to community development initiatives, including education, clean water access, and environmental conservation. WETCU representatives praised a recent study tour at AOTTL’s Morogoro facility, noting its value in understanding tobacco processing standards. Leaf Woman Ms. Hanifa Nalola highlighted the industry’s role in women’s employment, while Agronomist Mr. Walwa Msuka emphasized the importance of improved farming practices to meet market quality requirements. Magoti reiterated the need for continued collaboration among growers, cooperatives, and processors to ensure long-term sector sustainability.
The payments for the 2026 season underscore AOTTL’s role in stabilizing rural economies, though challenges persist, as seen in Tabora where farmers recently called for fairer market prices. Magoti stressed that strengthening the tobacco value chain requires ongoing efforts to enhance crop quality, mitigate production risks, and maintain environmental stewardship. With its dual focus on farmer support and ecological responsibility, AOTTL aims to balance economic growth with sustainable development in Tanzania’s tobacco sector.