Malawi commits to promoting cross-border trade

Malawi Government says it is committed to creating a conducive environment for trade and investment to enhance competitiveness in the cross-border business sector.

Minister of Trade and Industry Sosten Gwengwe said this in Mangochi on Wednesday when he opened a day-long workshop of the Revised Kyoto Convention (RKC) and Economic Competitiveness Package (ECP) which the Malawi Revenue Authority (MRA) hosted at Sunbird Nkopola Lodge.

He said the business community stands to benefit by obtaining enhanced competitiveness in national and international markets due to a reduction in delays and costs through efficient and predictable movement of goods across the borders.

“The Revised Kyoto Convention promotes accountability and revenue growth through systematic tracking of duty payments, refunds and other types of financial transactions.

“Therefore, the best practices by customs and administrators can significantly influence and advance economic competitiveness and social development by promoting international trade and investment,” he said.

Gwengwe said government has approved the establishment of One Stop Border Posts at Songwe-Kisumulu Border (Tanzania) and Mwanza-Zobue border (Mozambique) and the National Single Window.

“MRA is already implementing RKC recommended standards aimed at easing payments of taxes using scanners to speed up selectivity of goods to be subjected to physical check and to improve security. There is also an implementation of a declaration processing centre for speedy and uniform valuation clearance procedures,” he said.

Gwengwe, however, stressed that government will in the shortest time accede to the RKC as one way of promoting and maintaining efficient and modern customs harmonisation in line with international standards.

World Customs Organisation (WCO) secretary general Kunio Mikuriya said there is a need to encourage small and medium entrepreneurs (SMEs) and bring into the system informal traders to maximise tax collection.

“We can achieve this vision if our border management is strengthened and if enhanced revenue collection through an innovative approach of our business plans,” he said.

Currently, there are 85 countries which have already acceded to the RKC, 13 of which are in the East and Southern Africa region.