Malawi’s AGOA exports rise 6.5%
Malawi’s exports to the United States (US) through the African Growth and Opportunity Act (Agoa) have increased by 6.5 percent, US government figures show.
The figures contained in the latest Agoa update show that Malawi’s exports to the Agoa trade window rose by 6.5 percent to $16.94 million (about K18.56 billion) as at June 2023 from $15.9 million (about K17.23 billion) in June 2022.
Overall, the data shows that Malawi has maintained an increase and trade surplus with the United States over the past two decades with US exports from Malawi standing at $29 million (about K31.43 billion) while Malawi exports to the US stand at $54 million (about K58.53 billion)
Ministry of Trade and Industry spokesperson Mayeso Msokera in an interview said the Agoa market access window has offered a lot of products originating from Malawi duty-free and quota-free access to the US market, thereby increasing revenue for the country.
“Our producers and exporters stand a chance to gain a competitive advantage over exporters in other countries,” he said.
On his part, National Working Group on Trade and Policy chairperson Fredrick Changaya said there is need for awareness on the existence of the window and incentives for exports to ensure more Malawians take advantage of the pact to grow exports.
Since Agoa’s inception in 2000, Malawi has exported goods worth $1.55 billion (about K1.68 trillion) to the US while just under $1.15 billion (about K1.24 trillion) qualified for Agoa preferences.
On the other hand, imports from the US stand at $733 million (about K794.61 billion).
Malawi is among top countries in Africa that have adequately utilised the Agoa trade window over the past 23 years ranked on position 15 out of 35 countries.
The Agoa trade window covers textile as well as non-textile products such as leather, chemicals and other agricultural products from the beneficiary countries. It was designed to contribute to economic growth through good governance and free markets.
Under Agoa, whose lifespan was recently extended to September 30 2025, there are some 5 240 tariff items eligible as long as they were wholly grown, fished or mined in an Agoa country such as Malawi.
According to the data, Malawi’s exports to the US comprise mostly agricultural products such as tobacco, sugar, tea and nuts.
The Agoa window gives Malawi and other sub-Saharan Countries duty-free access to US markets for certain goods such as leather, chemicals and agricultural products.
