Ministry of Trade and Industry has attributed the rise of non-traditional exports to its National Export Strategy (NES II) which targets to improve trade facilitation.
Published November 2024 National Statistical Office (NSO) international merchandise trade statistics show that pulses consolidated their second position on exports –contributing 2.8 percent at $4.1 million (K7.2 billion) ahead of tea and sugar.
The statistics also showed that sugar slumped to position fourth, contributing 0.8 percent, swan wood account for 0.7 percent while plastics and scrap metal each contributed 0.4 percent and natural rubber 0.3 percent.
In an interview with Business News, Ministry of Trade and Industry spokesperson Patrick Botha said the terms of trade are in line with the ministry’s National Export Strategy II which targets competitiveness and diversity of export base beyond traditional crops such as tobacco and tea.
He said: “The products that have shown an increase are not our traditional products like tobacco, tea, sugar. This reflects that our export diversification efforts are bearing fruits.
“Malawi also intends to leverage regional integration through its participation in regional blocs such as African Continental Free Trade Area, Tripartite, Southern African Development Community and the Common Market for Eastern and Southern Africa as opportunities to explore new markets for such value-added products like rubber.”
According to NSO, the trade deficit declined by 24.8 percent from $202.1 million in October 2024 to $152.1 million in November.
Reads the NSO report in part: “Imports increased by 5.1 percent from $286.7 million [K502 billion] in October 2024 to $301.2 million [K527 billion] in November 2024. At the same time, total exports increased by 76.3 percent from $84.6 million [K148 billion] in October 2024 to $149.1 million [K261 billion] in November 2024.
“In terms of exports, the main commodities were tobacco valued at $104.3 million [69.9 percent] followed by pulses at $4.1 million [2.8 percent] and Tea at $3.7 million [2.5 percent],”.
National Working Group on Trade Policy chairperson Fredrick Changaya said it is not surprising that trade balance remains in the negative because most of the country’s exports are raw products.
“We export raw materials and import more industrial goods. We need to seriously reconsider industrial policy.
“Without that we will continue talking about negative terms of trade despite here and there witnessing a boom in exports.”
Malawi recorded a cumulative trade deficit of $2 billion (K3.6 trillion) in the first 11 months of 2024 to November which is five percent worse than the $1.9 billion (K3.4 trillion) registered in 2023.
Malawi launched NES II in 2021 to achieve export competitiveness focusing on increasing made-in-Malawi products in regional markets.
The NES II aspires to increase exports of ‘Made in Malawi’ goods to regional and global markets and improve export readiness.
