Malawi’s exports benefiting from preferential access to the European Union (EU) market grew by 19 percent between 2022 and 2024, underscoring opportunities to boost foreign exchange earnings even as exporters grapple with regulatory requirements and supply-side constraints, it has emerged.
Minister of Industrialisation, Business, Trade and Tourism Simon Itaye disclosed this in Lilongwe on Wednesday during commemorations marking 25 years of the EU’s Everything But Arms (EBA) initiative.
He said total exports to the EU grew by 13 percent during the same period, demonstrating the importance of preferential market access in supporting the country’s export sector.
EBA allows Malawi and other least-developed countries to export virtually all products to the EU duty-free and quota-free, excluding arms and ammunition.
Itaye said the next priority is to translate market access into greater industrial production, employment and value addition, particularly in agricultural commodities such as tea, coffee, sugar and nuts.
“For us, the next chapter of EBA should further involve a gradual shift towards creating stronger productive capacity, greater value addition and sustainable export growth,” he said.
Itaye cited tea, which is frequently exported in bulk for processing, packaging and branding abroad, as an example of opportunities to retain more value within Malawi.
Itaye said continued cooperation with European investors, alongside improvements in domestic processing and trade facilitation, would be critical to converting these opportunities into sustainable export growth.
However, EU Ambassador to Malawi Daniel Aristi-Gaztelumendi said some businesses have stopped exporting to Europe since January this year because of compliance challenges associated with the EU deforestation regulation.
He cited findings from a survey conducted by the Malawi Confederation of Chambers of Commerce and Industry (MCCCI), which also revealed that some exporters face certification audit costs, ranging from $3 000 (about K5.2 million) to $5 000 (about K8.7 million).
Other challenges include inadequate packaging, outdated equipment, low production volumes and high transport costs along the Nacala and Beira corridors.
“But access is not the same as exports,” Aristi-Gaztelumendi said, stressing the need to address obstacles preventing businesses from fully exploiting preferential market opportunities.
He said fuel shortages have compounded the challenges by disrupting production, transport and supply chains, affecting exporters’ ability to honour international contracts.
Aristi-Gaztelumendi said the EU is seeking to strengthen trade facilitation, improve certification and traceability systems and support investment in processing equipment to enhance export competitiveness.
He said that Malawi preferential market access will continue under the EU’s revised Generalised Scheme of Preferences effective January 1 2027.
Aristi-Gaztelumendi said anticipated graduation of some major Asian economies from preferential arrangements can create additional opportunities for African exporters.
On her part, MCCCI chief executive officer Daisy Kambalame said changing European market requirements present opportunities for businesses that invest in understanding and meeting international standards.
She said inadequate information about product traceability, environmental sustainability and safety requirements sometimes prevents exporters, particularly small and medium enterprises, from accessing the market.
“I think the key intervention is to ensure that there is enough information for the producers to know what that market requires,” she said.
Kambalame said the private sector lobby group is working to simplify regulatory information to help businesses comply with market requirements and expand exports.
EBA is an initiative of the EU under which all imports to the EU from least developed countries are duty-free and quote-free, with the exception of armaments.
