Malawi’s intra-Africa trade in marginal growth, says report

Trade between Malawi and other countries in Africa has grown by three percent between 2021 and 2022, with statistics showing a minimal growth in exports.

Data compiled by the Trade Law Centre indicates that Malawi’s intra-Africa trade accounts for about 32 percent of the country’s total trade, which is way below its neighbouring countries and  major trading partners.

Malawi Intra-Africa Trade and Tariff Profile shows that the country’s total value of intra-trade trade stood at $808 million (about K855 billion), with imports accounting for $413 million (about K 437 billion) while exports accounted for $395 million (about K419 billion).

This created a trade deficit of $18 million (about K19 billion) during the review period, according to the report.

As an agro-based economy, the data shows the country’s main export products to other African countries include groundnuts, unmanufactured tobacco and oil cake.

Malawi University of Business and Applied Sciences associate professor of economics Betchani Tchereni said there is need for Malawi to diversify its export products to generate more foreign exchange.

He said: “This is evident that we can do more and benefit within the region.

“The trade treaties and policies in place should compel us to trade more with our regional peers and think of diversifying our product portfolio.”

Tchereni observed that there have been a number of trade agreements and treaties that Malawi signed  which are beneficial.

Minister of Trade and Industry Simplex Chithyola-Banda said in an interview on Tuesday that government is pushing towards this direction to have a huge stake in the African Continental Free Trade Area (AfCFTA) agri-business boom.

He said the country will leverage on the fact that Malawi is a food basket and sell agricultural produce in the Africa region to tap into the projected 574 percent increase in intra-Africa agriculture trade by 2030.

With AfCFTA’s emphasis has been nailed on ensuring that the agro-products have value addition, Chithyola-Banda said the country can achieve this with the private sector’s participation, adding that government is putting up legislation which will help to create a conducive environment for foreign direct investment.

Data shows that Malawi’s main intra-African trading partners include South Africa, Tanzania, Kenya and Zambia.