Ministry of Trade and Industry has unveiled a common list of 47 products under the Simplified Trade Regime (STR) between Malawi and Mozambique, which requires a consignment threshold of $1 000 (about K1.7 million) per day.
This comes almost two months after the two countries signed the STR in October 2024 under the 16-member Southern African Development Community (Sadc) protocol on trade.
In a statement, the Ministry of Trade and Industry says the products include malambe (baobab) fruit, malambe powder, spaghetti, fish, tilapia fish, inland fish, cotton seed, salt, cement, banana fruit, banana flour, plastic kitchenware, maize, coconut fruit, pineapple fruit, Irish potatoes, groundnuts and processed chilli.
Reads the statement in part: “The agreement means that small-scale cross-border traders plying their trade between Malawi and Mozambique will be able to clear goods using a simplified set of rules, processes, procedures and documentary requirements for goods appearing in the bilateral common list.”
But Secretary for Trade and Industry Christina Zakeyu said to qualify for the Sadc STR, small-scale cross-border traders should ensure that the consignment is within the agreed threshold of $1 000 per day.
“The consignment originates from within the parties’ territorial jurisdictions and should meet the Sadc and Bilateral Preferential Trade Agreement rules of origin and that the products should be on the common list,” she said.
Malawi already has similar STR agreements with neighbouring Zambia and Zimbabwe through the 21-member Common Market for Eastern and Southern Africa (Comesa), but this new agreement sets a fresh benchmark in the Sadc framework.
Comesa Business Council president James Chimwaza said addressing trade barriers, enhancing digital infrastructure and building capacity can empower entrepreneurs to contribute to the country’s economic development and improve their livelihoods.
“It is possible to achieve regional integration through such agreements, but what matters is to improve the coordination and partnerships between businesses, cooperatives because production alliances are key for integration breakthrough,” he said.
National Association of Small and Medium Enterprises executive coordinator William Mwale described the STR as critical for cross-border trade, citing the simplified imports and exports activities they experience at Mchinji-Mwami One Stop Border Post.
Speaking earlier when signing the agreement with his Mozambican counterpart, Minister of Trade and Industry Sosten Gwengwe said the STR seeks to create new employment and trade opportunities by making it easier for small-scale traders to do business across borders.
He said simplifying the trading process is crucial to unlock economic potential for both countries
