Malawi total trade drops 1.5 percent
Malawi’s 2013 total trade—imports and exports combined—dropped by about 1.5 percent compared to the previous year, latest data from the United Nations Conference on Trade and Development (Unctad) has shown
The Unctad figures indicate that in 2013, Malawi’s total trade fell to $3.85 billion from $3.91 billion in 2012.
The data show that exports dropped to $1.15 billion from $1.18 billion while imports dropped slightly from $2.72 billion to $2.7 billion, consequently shrinking the trade deficit in the period.
But regardless of the slight slump in exports last year, in 2013 Malawi sold 168.6 million kilogrammes (kg) of tobacco, the country’s main export, compared to 80 million kg sold the previous year, representing a 111 percent increase.
However, the final average price for the 2013 marginally declined to $2.14 per kg from $2.22 per kg recorded in 2012, representing a four percent decrease.
In terms of imports, Malawi consumption of fuel, one of the country’s main imports apart from fertiliser, has dropped due to the automatic pricing mechanism adopted in mid 2012.
Ministry of Industry and Trade spokesperson Wiskes Nkombezi recently noted that Malawi’s biggest problem is that it has a big appetite for imported goods which has been responsible for the rising imports.
He noted that the country rolled out the ‘Buy Malawi Campaign’ which is aimed at encouraging consumption of locally produced goods because in the current trade regime, an economy cannot ban imports.
Commenting on the National Export Strategy (NES) which was launched in 2012, Nkombezi said the policy will not bear results instantly because it is a long-term programme.
But the Economist Intelligence Unit (EIU) as quoted by Nico Asset Managers Limited forecasts that exports will rise in 2014 as tobacco production continues to increase.
But the suspension of Kayelekera mine in Karonga might increase the current account deficit if it is closed for a long time.
Uranium accounts for 10 percent of total exports but tobacco export growth will prevent a worsening shortfall.
Malawi was tipped to fetch K71 billion ($161.6 million) from uranium in 2013, according to the International Monetary Fund (IMF) estimates.
