By Kingsley Jassi:
Malawi’s trade volume with one of the major trading partners, the United Kingdom (UK), dropped by 50 percent in 2025.
Trade records by the UK Government’s Department for Business and Trade show the two countries exchanged goods worth $90.5 million in the fourth quarter period ending September in 2025, which is just half of the $181 million worth of goods the two countries exchanged a decade ago.
The Ministry of Industrialisation, Trade and Tourism spokesperson Patrick Botha, acknowledged that there was a notable decline.
However, the World Bank sees a shift of trade flow as the local exporters develop interest in the African Market.
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During the review period, imports by Malawi dominated the trade volume at $53.6 million despite a 27.3 percent decline over the corresponding period in 2024, while goods exports increased by 17.4 percent to $36 million during the period.
“Malawi was the UK’s 169th largest trading partner in the four quarters to the end of the third quarter of 2025, accounting for less than 0.1 percent of total trade,” the trade factsheet by the department reads.
The country’s poor trade position with the UK stems from low productivity, the bigger problem the country grapples with. 2025 exports were just $966 million against imports worth $3.6 billion.
Over the decade, the country has seen some key export goods to the UK market falling off, notably cane sugar, which used to be top export product along with black tea.
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The UK-Malawi Chamber of Commerce Chairperson, Alex Sukali, said there are numerous challenges the exporters experience that need policy interventions but he could not go into details.
In the latest Malawi Economic Monitor (MEM) the World Bank recently delved into the country’s trade woes, observing a decade long decline that has contributed to the slow growth rate and economic imbalances.
However, the World Bank, in its recent Malawi Economic Monitor observes a marginal increase of exports from the UK to Malawi’s neighboring countries, indicating a shift as the regional market provides future potential for both exports and imports.
The bank further says with tobacco contributing about 61 percent of total exports, failure to diversify the export base contributes to the trade woes while exposing the economy to concentration risk.
“The share of Malawi’s exports destined for African countries rose from 35 percent between 2008-2008 to 39 percent in 2022- 2024. Moreover, the number of Malawian firms exporting to Africa is 2.3 times as high as that of firms exporting to the rest of the world,” reads the MEM.
