Malawi has failed to substantially increase its exports base in the past five years, figures from the International Trade Centre (ITC) Trade Map reveal.
Tabulated statistics show that export revenue has been hovering around $900 million.
For example, last year Malawi exported goods worth $965.5 million, a 2.6 percent increase from the $940.8 million worth exports recorded in 2022.
In 2021, Malawi recorded the highest export value at $1.01 billion.
In 2020, the country recorded the lowest export revenue at $781.9 million.
- Advertisement -
In 2019, Malawi earned $912.9 million through exports.
According to the ITC Trade Map, Malawi’s top five export markets in 2023 were Belgium at $153.8 million, Tanzania at $104.7 million, China at $54.4 million, South Africa at $51.6 million and Zimbabwe at $51.1 million.
Performance in the individual markets has been mixed where in some instances the export value has been increasing and vice-versa.
For example, Malawi’s exports to Belgium have slightly gone up from $151 million in 2019 while exports to Tanzania skyrocketed from $31.9 million and South Africa fell from $61 million in 2019.
- Advertisement -
- Advertisement -
In an interview, local economist Francis Chanthunya said Malawi needs to enhance value addition.
“Malawi needs to improve trade with the European Union and other international markets that demand more exotic brands and finished goods,” Chanthunya said.
Another economist Velli Nyirongo said the recent rise in Malawi’s exports to Tanzania and corresponding decrease towards South Africa underscores a shift in the country’s geographic trade partnerships.
In a separate interview, economist Marvina Banda said Malawi needs to work towards broadening its exports base and reach.
“South Africa is another example of a sweet potato importer which we have neglected to exploit, leaving smugglers to enjoy benefits which the country would otherwise reap,” Banda said.
Malawi is pursuing various policies, including the National Export Strategy (Nes II), in its desperate attempt to narrow the ever yawning trade deficit and ensure an export-led economic growth.
To be implemented between 2021 and 2026, the second Nes is crafted in a way to facilitate an increase of exports as a percentage of gross domestic product from 14.6 percent to at least 20 percent.
The strategy’s main objectives include increasing the contribution of exports to economic and social transformation, promoting diversification of products and markets and enhancing international competitiveness of Malawi’s industries, enterprises and products.
In a recent interview, Malawi Investment Trade Centre Chief Executive Officer Paul Kwengwere said the country is working on enhancing production, working on value addition while scouting for more market opportunities within and outside Africa.
“We have also made progress on export development but I would be quick to point out that we should improve the pace of implementation of our programme,” Kwengwere said.
