Local think tank Mwapata Institute has called for strategic reforms to address the complexities of Malawi’s export mandates, which were introduced in 2021 to supplement the Control of Goods Act (Coga) of 2018.
In a policy brief titled ‘What are the potential impacts of export mandates on Malawi’s economy and development trajectory?’ published on Monday, the institute cautioned that the mandate could undermine Malawi’s aspirations to become a predominantly exporting country, as outlined in the National Export Strategy.
The brief warns that the 2021 Export Mandate may have unintended consequences that could negatively affect the country’s trade dynamics.
Reads the brief in part: “One immediate risk is the potential rise in informal trade, as small exporters might bypass the formal system to avoid regulatory burdens.
“Another risk lies in the competitiveness of Malawi’s exports in the global market. If export regulations are perceived as cumbersome or overly restrictive, they may discourage foreign investment and hinder Malawian producers’ ability to meet international demand.”
The institute said the imposition of export bans, quotas or taxes could distort the market, making Malawi’s products less competitive compared with those from neighbouring countries with more flexible trade environments.
To avoid these pitfalls and ensure the 2021 Export Mandate achieves its objectives, Christone Nyondo, a research fellow at Mwapata Institute and co-author of the brief, recommended that the government focus on improving the clarity and transparency of the mandate’s implementation.
“Specifically, it is essential to precisely define how the 2018 Coga will safeguard infant industries and establish clear criteria for gradually phasing out government protection once these industries are ready to compete independently,” he said in a WhatsApp response.
Instead of relying on export bans, Nyondo proposed that the government consider replacing them with variable export taxes and quotas to provide a more flexible and less distorting regulatory framework, managed by an automated system based on predefined triggers.
He also suggested the establishment of a multi-sectoral liaison committee to work closely with the Ministry of Trade and Industry in overseeing the implementation of Coga.
“This committee includes representatives from government agencies, civil society, farmer organisations, and smallholder farmers to ensure all stakeholders are adequately represented,” said Nyondo.
On his part, agricultural policy expert Tamani Nkhono Mvula also weighed in on the issue, stressing that government should take a disaggregated approach to balance the need to boost exports to ensure food security.
He further urged government to provide farmers with access to finance, extension service, and quality inputs to ensure that Malawi can capitalise on regional and international trade agreements such as the African Continental Free Trade Area.
