Malawi exports to Brazil jump 300%

Malawi’s total exports to Brazil rose by about 300 percent to an all time high of $8.42 million (K3.7 billion) in 2012 from $2.15 million (K946 million) the previous year while imports from Brasilia were stuck at $2.36 million (K1 billion)

Figures from the Trade Law Centre (Tralac) on Africa—Brazil trade show that in 2012 Malawi’s top exports to Brasilia, one of the world’s emerging markets, included tobacco, electronic integrated circuits, plants for pharmacy, perfume and insecticides and tea.

Malawi’s top imports from Brazil include tractors, bulldozers, tires, lifting and handling machines and parts for generators.

The rise in exports to Brazil as imports stagnated means that Malawi turned the previous trade deficit into a surplus.

In 2009, Malawi and Brazil signed a Framework Agreement for Technical Cooperation, a commitment to promote the modernisation and diversification of Malawian agriculture, energy, mining and trade.

The agreement with Brazil, a member of the Brics—a short form for Brazil, Russia, India, China and South Africa—is seen as important in relations between the two developing economies.

Malawi generally suffers trade deficits with the rest of world.

The International Monetary Fund (IMF) in Malawi’s country report indicated that total trade deficit in 2012 stood at $658.2 million (K290 billion), with $2 billion (K880 billion) imports and $1.5 billion (K660 billion) exports.

According to the Reserve Bank of Malawi (RBM), exports are projected at $1.4 billion (K616 billion) by the end of 2013 while imports are estimated at $2.5 billion (K1.1 trillion), leading to a trade deficit of $1.1 billion (K484 billion).

Malawi launched the National Export Strategy (NES) last year which aims at providing a priorities road map for building Malawi’s productive base to generate sufficient export to match the upward pressure on Malawi’s import while at the same time maximising the direct contribution of export to economic and social development.