Malawi bemoans low value of intra-regional trade

Government has said despite persistent efforts to boost trade within Southern African Development Community (Sadc) and Common Market for Eastern and Southern Africa (Comesa), the value of intra-regional trade has remained low.
Minister of Industry, Trade and Tourism Joseph Mwanamvekha made the observation in a statement last week as the country joined the rest of Africa in commemorating the Africa Industrialisation Day.
The day was being commemorated under the theme Financing in the Third Industrial Development Decade for Africa: Challenges and Winning Strategies.
Mwanamvekha said while the country had signed a number of bilateral, multilateral and regional agreements in the Sadc and Comesa trade blocs to widen the market for the country’s goods and services, returns from such agreements have been unsatisfactory.

He said in the statement: “Exports from the African region are dominated by unprocessed or semi-processed agricultural produce and mineral products; hence, proving low value returns.
“Such low level of intra-regional trade clearly shows that great emphasis on tariff elimination has not brought about intended socio economic development nor enhancement of life and well-being of the people.”
However, Mwanamvekha said the Comesa Industrialisation Strategy (2015-2025) and the Sadc Industrialisation Strategy and Roadmap (2015-2063) aim at reversing the trend to achieve self-sustaining development for the region.
“This will be achieved through value addition to our products which in turn would increase returns from the export of the natural resources,” he said.
The minister called on the region to take into account innovative ways of financing industrialisation, saying inadequate capital investment was one of the challenges that has retarded the implementation of the existing programmes on industrialisation.
“This includes urgently formalising and operationalising regional development fund, promoting public- private partnerships and ensuring that private sector plays a pivotal role in the implementation of the industrialisation programmes,” he said.
The Africa Industrialisation Day was designated in 1989 by the United Nations (UN) to commemorate achievements that African countries and the international community have made towards industrialisation of the continent.
It is also a day when African countries sensitise the public on the challenges experienced and the role industrialisation plays in attaining sustainable economic growth and poverty reduction.—MANA