Malawi Agoa exports down
Malawi’s exports to the United States (US) through the African Growth and Opportunity Act (Agoa) continue to decline, falling by 9.23 percent in 2021 alone, published data shows.
During the year under review, Malawi’s exports to the Agoa trade window declined to $31.31 million (about K32 billion) from $34.5 million (about K36 billion) in 2020.
In 2019, Malawi exported goods worth $51.67 (K53 billion), a jump from $40.23 (K41 billion) in 2018. In 2017, Malawi exported goods worth $43.3 (K47 billion).
The performance of Malawi under the Agoa market makes it one of the least beneficiaries in the 2021/22 financial year after Zambia, Namibia, Gabon and Uganda.
In an interview on Tuesday, National Working Group on Trade and Policy chairperson Frederick Changaya said the declining trend dampens the aspirations not only under Agoa, but also in terms of trade for the country.
He said while it was hoped that the country would take advantage of the pact to grow exports, Malawi has failed to grow export.
Said Changaya: “We continue to rely on commodity exports primarily tobacco, macadamia nuts, lentils, pigeon peas, among others. Traditionally, commodities suffer from price oscillations.
“If people were being sensitised regularly to the existence of Agoa, many would have jumped at the opportunity. Similarly, the National Export Strategy should have put incentives for local investors to invest specifically for Agoa. “
He said the commodity- based export will continue performing dismally, thereby failing to achieve milestones such as improved foreign exchange position, reduced trade deficit and growing output.
Through the National Agoa Response Strategy and Action Plan for Malawi, Ministry of Trade and Industry had hoped to increase exports to the Agoa market from $51.3 million (K53 billion) in 2016 by at least 20 percent during the next five years.
This means that by 2021, the country would have exported at least $62 million (K64 billion), which is half of what is being exported at the moment.
The strategy also sought to help Malawi take full advantage of the preferential market access under the Agoa unilateral trade preference programme to increase the growth and competitiveness of the country’s exports to the US market.
The strategy gives government and the private sector tools and actionable recommendations for generating revenue and jobs as the country develops its productive base to drive its export competitiveness and economic empowerment agenda.
Ministry of Trade and Industry spokesperson Mayeso in an interview urged the private sector to take full advantage of preferential markets such as the Agoa.
He, however, said the country’s producers and exporters stand a chance to gain a competitive advantage over exporters in other countries.
The Agoa window gives Malawi and other sub-Sahara African nations duty-free access to US markets for certain goods such as leather, chemicals and agricultural products.
According to the Agoa data, oil and gas, apparel and accessories and transportation equipment remain the top leading exports to the US.
