Seize opportunity on Sadc meet, Malawi urged

The Malawi Government should seize the opportunity for hosting the 33rd Sadc summit to address a number of trade barriers such as trade permits, export taxes, import licenses and bans which hamper commerce within the 14-member trade bloc.

Malawi is currently hosting the Southern African Development Community (Sadc) summit from August 10 to 18 at the Bingu International Conference Centre in Lilongwe.

Local business operators and cross border traders have told Business News this week that the challenges they face in doing business within the region have been there for long with no solution in sight, hence the summit presents the right forum to address them.

They have argued that time is now ripe for the country to impress upon the trade bloc to ensure that trade within the region is less restrictive.

MBL Holdings Limited group chief executive officer Leston Mulli, whose business tentacles are in the agriculture, transportation and energy sectors, said the Malawi Government should take advantage of the summit to address barriers that have stifled trade over the years.

“With the Summit in Lilongwe, the government should push for policies that will ease the doing of business. Heads of State and Governments have been talking about regional trade integration for a long time. We need to see action now and not just talk. The government should advance this agenda and make sure that Malawians benefit,” he said.

Mulli said a number of business operators are facing problems at the borders due to delays to be cleared largely due to inefficient customs and standard agencies which increases trade cost which hovers at around $600 per day for one truck.

“As transporters, we are supposed to meet deadlines when supplying goods and this is affecting us because of poor trade policies within the member States. If businesses are not being conducted, how does government expect to get revenue,” he said, stressing that high on the agenda during the summit should be to iron out the policies to benefit the business community.

With the delays businesses faces particularly at border posts, its means that those trading within the region need to have deep pockets and plenty of patience, which is an added cost to their businesses could affect their profitability.

Cross border Trade Association of Malawi chairperson Dixies Chanza, in an interview on Tuesday, said they have been presenting their challenges to the Sadc Heads of States and Government but nothing seems to be moving.

He said their challenges in doing business, among others, are harassment of women traders at border posts, a number of road blocks and delays in clearing their good, particularly at Songwe, a border post between Malawi and it northern neighbour Tanzania.

“It takes between eight to 10 hours to be cleared at Songwe border post and it becomes costly for most of the business. We have been discussing these issues with authorities and this time around we want to find a lasting solution in view of the Sadc summit,” said Chanza.

The association is expected to make a presentation at the ongoing summit to enlighten the leaders on the challenges they are facing.

Recently, trucks carrying exports from Malawi were stuck at Mwanza Border due to changes in procedures Mozambique effected in April this year.

Mozambique effected a transit bond system in April causing delays to Malawi’s trucks carrying goods.

Malawi Revenue Authority (MRA) Mwanza deputy station manager Julio Mpinga was quoted as saying imports at the border post are cleared within an average of four hours while exports take about 1.5 hours but this applies where the transporter has valid documentation.