Trade and financial experts have urged government to move from rhetoric to execution after the Malawi Trade Report 2025 exposed deep structural weaknesses in the economy.
The report, launched yesterday in Lilongwe by Export Development Fund (EDF), shows a fall in exports of over seven percent and a stubborn $2.4 billion (K4.3 trillion) trade deficit.
Speaking at the launch, Minister of Industrialisation, Business, Trade and Tourism George Par t r idge said the findings should trigger immediate action, not another round of speeches.
“We will be measured not by our reports, but by outcomes in export growth, job creation and foreign exchange,” he said. “This is not a moment for incremental adjustments. It requires fundamental realignment.”
Malawi’s external position weakened in 2024 as exports contracted faster than imports, widening the trade deficit despite a marginal slowdown in import demand.
Official data show that imports edged down from US$3.33 billion in 2023 to $3.31 billion in 2024—a modest 0.6 percent decline—reflecting relatively stable import demand.
However, exports fell more sharply, dropping by 6.8 percent from $1.03 billion to US$0.96 billion.
Partridge warned that while tobacco earnings hit a six-year high of $569.9 million (K970 billion) this year, Malawi remains dangerously dependent on a single crop that accounts for over 50 percent of its foreign exchange earnings and 13 percent of the economy.
Services exports, particularly telecommunications and computer services, are emerging as the fastest-growing sector— rising from $42 million (K75.6 billion) in 2019 to $154 million (K277 billion) in 2023—but remain under-supported.
“The evidence is clear: transformation is already happening in unexpected sectors. Our job now is to scale it,” Partridge said.
A key shift highlighted in the report is the need to target regional markets rather than chase distant global ones. Malawi’s export share in Africa stands at 0.3 percent, nearly 100 times higher than its estimated 0.0004 percent share globally.
Speaking at the same event, EDF board chairperson Ted Nankhumwa said this is where the country’s quickest wins lie.
“Our best prospects are regional,” he said. “We must capture the US$208 million [K374 billion] in identified export potential, especially in sugar and value-added agro-products.”
From the financial sector, FDH Financial Holdings Group chief executive officer William Mpinganjira said the report gives banks “a clear map” of where financing must shift.
“The financial sector is liquid, but most of that liquidity is tied up in government securities instead of productive firms,” he said in an interview on the sidelines of the event.
“If we want sustainable foreign exchange, we must finance export-facing businesses, not just government borrowing.”
Mpinganjira said banks need to help medium and large SMEs improve governance and reporting to qualify for export credit, adding: “The issue is not lack of money. The issue is where the money is going.”
