Malawi is expected to commence trading under the Guided Trade Initiative (GTI) of the African Continental Free Trade Agreement (AfCFTA) within the next three months, the Ministry of Trade has said.
In a written response to a questionnaire, Ministry of Trade spokesperson Patrick Botha described the upcoming trade as a milestone that would provide a practical framework for testing trade mechanisms, resolving challenges boosting intra- African trade.
“Although Malawi has not yet started trading under the GTI, several critical preparatory activities have been completed, and some companies have already expressed interest in participating,” Botha said.
He said the ministry had launched various initiatives to enhance private sector participation in AfCFTA, including training on trade protocols, implementation modalities and available market opportunities.
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Botha further said operational tools such as the Pan-African Payment and Settlement System (PAPSS), which allows companies to trade in local currencies, were ready for deployment, adding that Malawian banks had adopted the system and were preparing to go live.
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Additionally, he lauded the Malawi Revenue Authority’s recent launch of the online E-Tariff Book, which has digitised all Harmonised System (HS) codes across all trade agreements, including the AfCFTA.
The Economic Report on Africa 2025 by the United Nations Economic Commission for Africa (Uneca) underscored the AfCFTA’s potential in addressing the continent’s socio-economic challenges.
The report calls for accelerated implementation of the agreement, reducing tariffs, eliminating non-tariff barriers, harmonising trade policies across member states, developing regional value chains and integrating climate policies into AfCFTA implementation strategies.
Financial institution Bridgepath Capital Limited, in its review of the Uneca report, stressed the binding nature of the AfCFTA agreement, urging State parties to conduct a comprehensive review of domestic policies and laws, address any gaps and ensure alignment with AfCFTA standards.
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Malawi ratified the AfCFTA agreement in January 2021, aiming to commence trading by October 2024.
However, the country is yet to launch trade activities, with many traders citing limited readiness up to April 2025.
Economist Edward Chilima said participation in the AfCFTA would open Malawi to a much larger market for its goods and services.
