TFTA excites local businesses
The Tripartite Free Trade Area (TFTA) pact is an opportunity for the country’s businesses to grow if they increase their exports to the region, local businesses have said.
Small and Medium Enterprises Association (SMEA) president James Chiutsi, speaking in an interview in lieu of the recently signed TFTA agreement signed by President Peter Mutharika in Egypt, commended government for being party to the pact.
Chiutsi was, however, quick to mention that the pact requires the country to step up on production and match the product quality that the international market demands.
“This initiative reminds us to pull up our socks in order to compete competently on the international market. We also call on government to back this up by the establishment of industrial shells which our SMEs have been crying for.
“Further, some government institutions like the Malawi Bureau of Standards need to be capacitated to issue internationally accepted certificates, otherwise we will not benefit from this initiative,” he said.
Concurring with Chiutsi, local business people’s lobby group Indigenous Business Association of Malawi (Ibam) president Mike Mlombwa welcomed the development, saying the country’s businesses stand to benefit from the pact.
“This is exciting news to both business people in the country and government. It will earn us foreign exchange and exposure to other business opportunities and markets,” he said.
He urged government to ensure that SME’s are reached with the message, saying there is little information about this development as such the average Malawian is not aware of the pact.
This is not the first attempt for the country to improve trade with other African countries.
In 2013, the country attempted to improve trade across borders by launching cargo scanners on its main borders to limit the frequency of physical examinations, thereby facilitating legitimate trade and improving the doing business environment in the country.
The country also launched the National Export Strategy (NES) in 2012 to prompt exports with focus on oil seed products including cooking oil, soaps lubricants paints and varnishes among others.
The TFTA, among other major benefits, enables free movement of goods and services in 26 African countries.
