Performance of Tobacco Leaf Exports

British American Tobacco Uganda is pessimistic about the performance of its tobacco leaf exports due to the drought that has hit the West Nile region in Uganda.

Mr Alain Shacher BATU’s managing director told journalists in Kampala, that the company is concerned about the severe shortage of rains in tobacco growing regions.

“This means that in the leaf business we will have a tough year. But we are doing all we can to make sure we manage the business,” Mr Shacher said on the sidelines of the company’s AGM last week.

The firm’s leaf export revenue arm has already suffered a setback with the loss of products valued at about Shs23 billion.

In January, about 2,000 tonnes of leaf exports were lost in a fire that burnt a Kampala warehouse where the exports are stored before shipment.

Last year, BATU generated about Shs106 billion - a half of its revenue, from tobacco leaf exports while the other half was earned from cigarette sales within Uganda.