China-Malawi trade up 484% in six years

China’s trade volume with Malawi surged to $250 million (K112 billion) in 2013, representing a 484 percent increase since establishment of diplomatic ties seven years ago, Chinese ambassador Zhang Qingyang said on Tuesday.

Zhang said this in Lilongwe during a Chinese Business Forum organised by Malawi Stock Exchange (MSE)-listed Standard Bank Malawi in partnership with the Chinese Embassy.

Malawi established an asymmetrical bilateral relationship with China in 2007 and since then, he said bilateral relations have been on the track of rapid and sound development.

“One of the efforts made is to foster trade between the two countries. In this regard, the Chinese side has tried all means to expand and streamline the bilateral trade,” said Zhang.

He said that besides a rapid growth in bilateral trade between the two countries, more Chinese entrepreneurs are coming to Malawi to invest and do business which he said has created many job opportunities for local people.

The business relations between China and Malawi date back to 2008 when the two countries signed a memorandum of understanding (MoU) covering industry, trade and investment.

Under the agreement, China made a commitment to help increase the productive capacity of Malawi in tobacco, cotton, mining, fertiliser production and in processing hides and skins, among others.

The same MoU also allows Malawi to enjoy preferential access to China markets and in return, Malawi Government encourages Chinese businesses to invest in Malawi.

Zhang hoped that holding of such a trade forum would further strengthen and deepen the economy and trade relations between China and Malawi.

“As Malawi Government is trying to improve the environment for investment, more and more foreign investors will come to Malawi to do business,” he said.

Standard Bank Malawi Limited chief executive officer Andrew Mashanda observed that since choosing China as its preferred business partner, Malawi is enjoying a boom in Chinese investments as well as infrastructure.

Some of the Chinese architectural imprints include the new Parliament Building, Bingu International Convention Centre (Bicc), the five-star President’s Walmont Hotel, the National Stadium and Malawi University of Science and Technology (Must).

“We consider ourselves as the bank of choice for the Chinese business because of the expertise we tap from our global network and the strategic relationship with our shareholder ICBC,” he said.