Ministry of Trade and Industry says the country’s trade partnership with India is a potential driver of agricultural transformation.
In her remarks at the India-Malawi Hybrid Meet for Engineering Goods, Ministry of Trade and Industry deputy director of trade in goods Charity Musonzo said Malawi’s trade ties with India could provide local farmers and suppliers with advanced equipment from the Asian country to bolster mechanisation and irrigation.
He said: “India’s engineering in the agricultural sector is more advanced than ours. We can use our trade ties and business partnerships to tap into these resources and secure the equipment we need to improve efficiency in the agricultural sector.”
In an interview on the sidelines of the event, Indian High Commissioner Subbiah Gopalakrishnan said his government and traders from his country are looking forward to complementing Malawi’s development efforts in all key economic sectors.
However, delegates to the meeting acknowledged that the Indian market presents a unique opportunity, but stressed that there are some challenges that need to be addressed to realise the potential offered by the trade ties.
Anderson Engineering managing director Harold Jere said the two parties will have to address three key challenges, namely differences in specifications, delayed shipments and high prices.
“The differences in specifications are a problem because sometimes what we order is not what we get. After this meeting, we hope that this will change and we will know for sure what we are ordering before it gets here,” he said.
Representatives from the Indian delegation also expressed concern that local suppliers tend to delay payments, citing problems with accessing foreign exchange from authorised dealer banks.
On the perennial forex shortages, Gopalakrishnan assured the Indian exporters that the problem is “temporary” and expressed optimism that they will be resolved.
“We know there have been some challenges, but it does not mean that Indian traders should stop exporting to Malawi. We are trying to establish business relationships and we expect those partnerships to continue even when there are challenges,” he said.
The meeting, held in Lilongwe, was organised by the Indian High Commission in Malawi in collaboration with the Engineering Export Promotion Council of India.
It brought together Indian exporters, who attended the meeting via Zoom, government officials and local suppliers.
Malawi’s foreign exchange shortages has been an ongoing problem, largely due to the country’s underproduction of goods for the export market.
