Malawi is among the 88 percent of countries where non-tariff measures (NTMs) now impose higher export costs than tariffs, according to the May 2026 Global Trade Update by United Nations Trade and Development.
The update says NTMs, which include product standards, health regulations and administrative procedures, have become the main barrier to trade for many developing economies.
While tariffs increased by 16 percent for developing countries and 18 percent for least developed countries in 2025, least developed countries lose about 10 percent of their exports to G20 markets because many firms fail to comply with technical and safety standards.
Reads the update in part: “NTMs are a central part of recent trade agreements. Negotiations now focus more on aligning rules, recognising standards and simplifying procedures, rather than cutting tariffs.
“The challenge is not only the measures themselves. It’s also how difficult they are to find and understand.”
According to the update, improving transparency could reduce NTM-related trade costs by about 19 percent, while aligning regulations and recognising standards could lower costs by 15 to 30 percent.
On the other hand, stronger regulatory cooperation in Africa could reduce trade costs by up to 40 percent in sectors such as agriculture and manufacturing while maintaining health, safety and environmental protections.
Published World Bank data show that trade barriers are limiting Malawi’s export potential and contributing to potential revenue losses of about $235.1 million, or roughly K411.8 billion.
Speaking at the launch of the World Bank Malawi Economic Monitor recently, Deputy Minister of Industrialisation, Trade and Tourism Edgar Tembo acknowledged the structural challenge, saying export performance has not kept pace with import requirements.
He said the government has pledged reforms aimed at improving trade facilitation and industrial competitiveness.
Tembo said reforms “must be coherent, sequenced, and sustained,” adding that export-oriented industrialisation remains central to job creation and foreign exchange generation.
In 2025, Malawi’s trade deficit widened by 15 percent to $2.67 billion (about K4.6 trillion) from $2.2 billion (about K3.8 trillion) the previous year driven by an increase in imports and a decline in exports, according to National Statistical Office (NSO).
