Malawi is expected to start trading with peers under the African Continental Free Trade Area’s (AfCFTA) Guided Trade Initiative in October this year, the Ministry of Trade has said.
This follows a recent visit by AfCFTA secretariat officials to assess Malawi’s readiness.
The AfCFTA Guided Trade Initiative is a pilot preferential trade arrangement launched in October 2022. About eight countries, including Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia, started trading under the pact.
In an interview Tuesday, Ministry of Trade spokesperson Patrick Botha said all documentation requirements had been met by Malawi.
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“All things being equal, according to our plan, we are hoping that by October we should have our first consignments exported,” he said.
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According to Botha, local industry is ready and willing to commence trading under the pact.
He said players need “to add a little bit of the necessary steps and processes” to perfect the products.
“Apparently, the AfCFTA team which came into the country was convinced and confirmed that we are ready,” Botha said.
Malawi Confederation of Chambers of Commerce and Industry Chief Executive Officer Daisy Kambalame said AfCFTA’s GTI presents a crucial opportunity for Malawi to unlock significant market advantages.
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She said by concentrating on diversifying, commercialising and adding value to its agricultural products, Malawi can effectively capitalise on the advantages offered by the initiative.
“The government is making notable strides in enhancing trade facilitation in the logistics sector through rejuvenation of railway system, one stop border posts and coordinated border management.
“However, it is critical for local businesses to produce goods at competitive prices in order to thrive in the continental marketplace. Unfortunately, high production costs for Malawian goods pose a substantial barrier, limiting their competitiveness in the wider African market,” she said.
She said access to finance remains a significant hurdle for many small and medium-sized enterprises (SMEs) in Malawi.
According to Kambalame, the macroeconomic environment must be conducive to attract investment in the country.
Executive Director at the Competition and Fair Trading Commission (CfTC) Steve Lloyd Nkhoma said the AfCFTA creates an opportunity to integrate in the industrial setup with companies from other countries.
“Fears are there. Every agreement has opportunities and risks. We don’t have that vast industrial base that we can say instantly that we are going to benefit from the revolution, the opening up of the continental market,” Nkhoma said.
In an earlier interview, AfCFTA Principal Officer in the Directorate of Trade in Goods and Competition Diana Akullo Ogwal said following the progress made on the GTI, many countries are coming to join and more products are being traded.
She said that in the first phase, agricultural commodities dominated the list of traded products, apart from batteries, air conditioning units, among others.
