Trade Minister Sosten Gwengwe has said Malawi needs to adopt a more proactive approach in expanding its agribusiness value chains to effectively contribute to import substitution and compete in the export market.
Gwengwe made the remarks in Lilongwe on Tuesday during the 12th Ndizotheka Eminent Speaker Series, held under the theme ‘Unlocking Wealth Creation Through Enhanced Agro-processing of Priority Value Chains for Nutrition and Diets’.
The event was organised by the National Planning Commission (NPC), Mwapata Institute and the Lilongwe University of Agriculture and Natural Resources (Luanar).
According to Gwengwe, Malawi has numerous small and medium enterprises (SMEs) that produce high-quality products but operate on a small scale.
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He said exports from these SMEs are insufficient to offset the rising costs of fuel and fertiliser.
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Regarding competitive advantage, Gwengwe emphasised that Malawi should not delay scaling up its SMEs until its infrastructure matches that of Johannesburg or London.
While acknowledging the government’s efforts to improve road, rail and port infrastructure, Gwengwe stressed the need to simultaneously upscale businesses.
NPC Director General Thomas Munthali said Malawi should capitalise on the $100 billion food demand within the African Continental Free Trade Area.
Munthali expressed concern over the significant increase in food imports that the country has been making over the past three decades.
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“Essentially, our agenda for wealth creation should be linked to immediate gains in agro-processing and the nutritional needs of our nation,” Munthali said.
Professor Andy Dougill from the University of York said there are opportunities for Malawi in processing drought-resistant food crops such as sorghum and millet.
On his part, Research Director at Mwapata Institute, Levison Chiwaula, stressed that agro-processing could shift Malawi away from exporting primary agricultural products, potentially increasing export earnings.
Co-Director of the Malawi University of Science and Technology Centre of Excellence for Food Systems Transformation, Innovation, and Entrepreneurship, Professor David Mkwambisi, said value addition could enhance Malawi’s export revenues and support import substitution.
