Ministry of Trade and Industry’s move to ban some imports has attracted mixed reactions, with the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) saying the move is against regional trade integration aspirations.
The private sector lobby group also fears the move could cause a rise in inflation, limit consumer choice and affect international trade relations.
But some stakeholders such as Malawi Milk Producers Association feel the move is an opportunity to grow the local industry, although there is need to capacitate some economic sectors.
In a government gazette dated March 13 2025, Minister of Trade and Industry Vitumbiko Mumba announced an import ban on maize flour, fresh milk, rice and fruits, except those that do not grow in Malawi.
The ban also extends to vegetables, except those that do not grow in Malawi, peanut butter, honey, popcorn, meat products such as sausages, bacon and cold meats, toothpicks, matches, bottled water, table eggs, plastic utensils, wooden furniture, mops, Irish potatoes, garlic, ginger, onions and security boots.
In a written response on Saturday, MCCCI chief executive officer Daisy Kambalame said while it is important to know how government is incentivising production to meet the deficit created by imports ban, the move is against the African Continental Free Trade Area, Southern African Development Community and Common Market for Eastern and Southern Africa regional trade integration aspirations.
She said despite government being justified to impose the ban considering the current foreign exchange crisis, “a kneejerk reaction” can also be counter-productive.
Said Kambalame: “Import bans could strain trade relations with other countries, particularly those that supply the goods in question, which could lead to trade restrictions.
“This could reduce Malawi’s ability to negotiate favourable trade agreements, further isolating it economically.”
She suggested a consultative strategic approach to evaluate the long-term effects of the imports ban in Malawi.
“While it may protect and encourage local industries in the short-term, it also has the potential to cause inflation, limit consumer choice and affect international trade relations,” said Kambalame.
Chamber for Small and Medium Enterprises executive secretary James Chiutsi said the ban will protect local industries from foreign competition while creating more jobs and fostering economic growth.
“We, therefore, plead with local financiers, skills development agencies, both public and private, to offer top notch services to our local producers,” he said.
Milk Producers Association executive director Herbert Chagona said the policy should define fresh milk as many imports are in the form of UHT (ultra-high temperature), which takes a big chunk of dairy exports and crowds out local fresh milk.
He said: “This policy will also be useless if milk processors do not increase prices at farm-gate.
“No farmer will be willing to continue to sell the milk at K450 per litre when they can sell the same litre at K1 500 to a vendor while spending K410 to produce one litre of milk.”
Chagona said the policy will only be effective if the government makes available forex for processors to buy packaging materials.
Data from the association shows that in 2024, 54 million litres of milk was sold on the formal market.
National Working Group on Trade and Policy chairperson Frederick Changaya, who is also managing director of Applecore Grain and Milling Limited, said in an interview that nascent industries that can lift the industrial index of a country higher require tactical protectionism.
He, however, said there is need for provision of cheaper capital, stronger border controls, deterrent laws and consumer awareness.
In the government gazette notice, Mumba warned that any person who contravenes the provisions of the order will be liable to penalties specified under penalties Section 14 of the Control of Goods Act.
According to published Mwapata Institute data, importation of food and beverages, both primary and processed, constituted about 80 percent of food imports between 2010 and 2018, an indication that much of the food imports in the country are for direct consumption.
Mwapata said there was a drastic upsurge in food imports of about 64 percent between 2015 and 2016 while food exports grew by two percent during the same period
