Malawi’s exports eased in February this year following a decline of tobacco exports, worsening the trade balance compared to same period last year
Preliminary merchandise trade data from National Statistical Office (NSO) shows that exports were recorded at $32.6 million (about K53 billion) in February, 40.9 percent lower than the $55.1 million (about K96.4 billion) registered in February 2024 and also way below the $126.7 million (about K221.8 billion) recorded in January this year.
The report indicates that this happened at a time imports continue to rise, having jumped from $181.6 million (about K318 billion) in February 2024 to $293.7 million (about K514 billion) in February 2025, widening the trade deficit.
Reads the report in part: “The trade deficit grew to $261.1 million [about K457 billion] in February 2025, up by 106.4 percent from $126.2 million in February 2024 as exports decreased relative to imports.”
The data further shows that the export-to-import ratio is 0.1, indicating that exports were equivalent to 10 percent of the import value in February 2025 due to a sharp decline in tobacco exports during the month.
In the month under review, the key export commodities were tobacco, valued at $11.3 million (about K20 billion), which is 34.6 percent, followed by tea at $6.2 million (about K11 billion) or 18.9 percent and pulses at $2.6 million (about K4.5 billion) oreight percent of the total exports.
This is a significant fall in tobacco exports from $45.2 million (about K79 billion), which was 78 percent of total exports in January 2025.
National Working Group on Trade Policy chairperson Fredrick Changaya said on Tuesday that this highlights the need to diversify the country’s exports.
“We need to diversify our exports to make more finished products. If you look at our exports, they are dominated by tobacco and this is not a safe situation because it is likely to get affected by seasonal changes,” he said.
Malawi Investment and Trade Centre acting director of trade promotion and facilitation Lovemore Ndege said in an interview on Tuesday that government has a number of initiatives to solve the trade deficit problem.
“We are developing industries that are supposed to produce products that are for the export market in order to reduce the trade deficits and bring forex as well into the country,” he said.
Scotland-based Malawian economist Velli Nyirongo, cautioned that the trade deficits and the declining forex reserves that follow will likely limit the country’s capacity to import essential commodities such as fertiliser and fuel.
He said: “Without sufficient foreign reserves to purchase these goods, there could be severe disruptions to economic activities, food security, and overall stability.
“Shortages could also lead to higher prices domestically as businesses pass on the costs of acquiring scarce goods to consumers, further exacerbating inflation.”
Earlier at a budget report dissemination meeting co-facilitated by Oxfam in Malawi and the Economics Association of Malawi, economist Wytone Jombo cautioned that persistent forex problems could undermine the country’s growth prospects.
Malawi imports goods worth $3 billion (about K5.2 trillion) against exports valued at $1 billion (about K1.7 trillion), according to NSO data.
