Malawi secures K1.2BN market in china—MITC

Malawi Investment and Trade Centre (Mitc) has secured a preferential quota and duty-free market access in China for soya beans and sesame seeds worth approximately $100 million (about K1.2 billion).

In a written response yesterday, Mitc chief executive officer Paul Kwengwere indicated that the one-stop centre has received an interest for 100 000 metric tonnes (MT) of soya beans and 20 000MT of sesame seeds from a prospective buyer in China.

He courted those who may have the commodities to engage the Mitc.

Said Kwengwere: “The buyer is willing to sign a three to five year contract with prospective suppliers and outlined product specifications, payment terms and other logistical issues.

“We are awaiting the Malawian exporters to send their offers to the buyer and to negotiate logistical arrangements of the same. The payment terms preferred by the buyers are letters of credit agreed with bankers of both buyer and seller.”

Kwengwere said Mitc is also looking at markets for grains, oil seeds, sugar, pulses, poultry, plastic products and manufacturing products in Zimbabwe, Mozambique, Zambia, Tanzania, the Democratic Republic of Congo, Kenya, Uganda and South Africa. 

In addition, he said the centre is opening up markets for horticulture products and goat and beef products in the Middle East and Gulf countries. 

Further, Kwengwere said they are also looking for markets for cannabis and mining products in Europe and America.

In recent years, Malawi has failed to sustain its export trade, opting for traditional products and cheap labour

However, Ministry of Trade and Industry has been pursuing a number of policies and strategies to boost exports, including the National Export Strategy II as well as the commencement of trading under African Continental Free Trade Area, which is a market of 1.2 billion people with an estimated $3 trillion in combined gross domestic product.

Malawi has also been banking on the Buy Malawi Strategy launched six years ago to enhance competitiveness of local firms, stimulate local production, promote industrialisation and enhance import substitution.

Farmers Union of Malawi chief executive officer Jacob Nyirongo said in an interview the country needs a pro-active role in positioning its agriculture system to take advantage of such opportunities.

He said the country needs more pro-active agricultural production systems that should take advantage of opportunities such as these ones.

Parliamentary Committee on Trade, Industry and Tourism chairperson Paul Nkhoma called on government to promote value-addition for the commodities to be exported so that the country generates more forex and does not export jobs.