The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has said policy distortions in the foreign exchange market are making Malawian exports uncompetitive, contributing to the country’s worsening forex shortages and declining export base.
MCCCI President Ronald Ngwira said the country risked further economic deterioration unless the government urgently addressed exchange rate challenges and created a conducive environment for exporters and manufacturers.
Speaking at a Business-to-Business Forum on the sidelines of the 36th Malawi International Trade Fair in Blantyre on Saturday, Ngwira said the number of exporting companies and export products from Malawi had significantly declined over the past decade, weakening the private sector’s capacity to generate foreign exchange.
“This is why we are keen, as the chamber, to engage the government on policy cohesion and where we can grow foreign exchange,” Ngwira said.
He said exporters were struggling to remain competitive because production costs had sharply increased while the official exchange rate had remained largely unchanged for years.
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Ngwira said the mismatch meant Malawian products were becoming increasingly expensive at international markets, making it difficult for exporters to compete regionally and globally.
He also cited the 25 percent foreign exchange surrender requirement as another major burden on exporters, saying there were several policy adjustments the government could make to improve export performance and forex generation.
He further urged the government to strengthen public-private sector dialogue to unlock opportunities under the African Continental Free Trade Area, which he described as a major opportunity for Malawian businesses to access wider African markets.
Speaking at the Forum, Industrialisation, Business, Trade and Tourism Minister Simon Itaye acknowledged that Malawi’s economy remained under pressure.
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He was quick to say the government was pursuing reforms aimed at boosting production, exports and industrial growth.
“We must produce more, add value to what we produce and strengthen the resilience of our economy,” Itaye said.
He said the government’s recovery strategy was anchored on disciplined public finance management, domestic revenue mobilisation, export growth and rebuilding productive sectors of the economy.
Itaye said the government was prioritising sectors that had potential to generate jobs, exports and foreign exchange, citing agriculture, manufacturing, mining and tourism.
He added that Malawi was intensifying regional trade integration through the National Export Strategy II and the country’s strategy under the African Continental Free Trade Area to improve market access and competitiveness of local products.
Malawi has been grappling with persistent foreign exchange shortages driven by a widening trade deficit, with the gap between imports and exports reaching $2.67 billion (K4.67 trillion) at the end of 2025, according to National Statistical Office figures.
The forum, which MCCCI organised, is a new feature of this year’s trade fair and was aimed at creating a formal platform for local and international businesses to negotiate partnerships and investment deals.
