Ministry hails Comesa on Cross-Border trade
The Simplified Trade Regime (STR) and the incoming cross-border market at the Mchinji-Mwambi border between Malawi and Zambia will improve trade facilitation for local cross-border traders, the Ministry of Trade and Industry says.
Minister of Trade and Industry officer Ovilera Pherani said this on Wednesday during a media training workshop the Common Market for East and Southern Africa (Comesa) held to build the capacity of journalists in reporting the bloc’s regional integration and cooperation activities.
In his presentation at the workshop, Pherani said Comesa’s support in the construction of the cross-border trader’s market, which is expected to commence in June, will help improve local traders’ access to international markets and build on the progress made by the bloc’s STR.
The STR is a trade agreement facilitated by the Comesa that allows cross-border traders within the bloc to enjoy duty-free status when importing goods originating from other member States.
Pherani said: “This initiative has helped to strengthen trade between Malawi, Zambia and Zimbabwe and there are talks to include more products under this initiative.”
According to Malawi Revenue Authority (MRA), the list of eligible products includes some agricultural products, live animals, food products, furniture, stationery and other assorted items. Therefore, traders enjoy duty-free status on such goods originating from any of the three member-States.
In a separate interview, Cross-Border Traders Association of Malawi president Steve Yohane said the cross border market will help local traders have a strategic point where they can market their products to international customers.
He said: “Malawi does not have a strategic market where traders from other regions can find quality goods ready to buy. We have local markets in Mchesi where people can buy these goods but they are not packaged and are usually of a lower market.
“So, the cross border market will provide a strategic point where local manufacturers can sell their merchandise. We requested that we have this market where local traders can even package their products and market them to external traders.”
The Cross-Border Traders Association of Malawi is a member of the Cross-Border Network for East and Southern Africa (CBTNESA), a coalition that brings together cross-border traders from Malawi, Zambia, Zimbabwe, Ethiopia and the Democratic Republic of Congo (DRC).
Comesa is supporting the construction of the market and is optimistic that having a strategic selling point will help local traders and their counterparts from CBTNESA member countries to trade and exchange ideas.
Zambia and Zimbabwe are some countries within the bloc that have benefitted from having markets controlled by cross-border traders.
