By Mcloyd Chilangiza
Malawi risks missing trade opportunities and losing out on millions of potential jobs under the African Continental Free Trade Area (AfCFTA) due to poor transport systems, border delays and persistent trade barriers.
This has been raised by local traders and economists in response to a recent report by the Mo Ibrahim Foundation titled Africa on the Move: Boosting Mobility and Connectivity, which found that barriers restricting the movement of goods, services and people continue to constrain intra-African trade across the continent.
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According to the report, full implementation of AfCFTA could increase intra-African trade from 18 percent to 53 percent which would generate approximately $470 billion in additional income and create 14 million jobs by 2035.
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However, the report found that poor infrastructure and logistics bottlenecks continue to weaken Malawi’s competitiveness on the regional markets.
For example, the report says Malawi’s indirect rail access to Mozambican ports pushes transport costs up while poor road connectivity and border delays continue to disrupt trade flows.
“Road transport, which carries about 90 percent of Africa’s passenger and freight traffic, remains unreliable due to poor connectivity and border inefficiencies,” reads the report.
The report also shows that visa restrictions continue to limit labour mobility and cross-border business expansion, with only 28 percent of Africans able to travel visa-free within the continent despite ongoing regional integration efforts.
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Cross Border Traders Association of Malawi president Steve Yohane said the report is a true reflection of the challenges affecting Malawi’s trade sector.
“Malawi has signed different trade agreements and instruments, yet traders still face high tariffs, unclear tax systems, harassment and corruption at borders, poor infrastructure and border delays,” Yohane said.
Economics Association of Malawi President Bertha Chikadza said high logistics costs, cross-border delays and unreliable transport links are further reducing the competitiveness of Malawi’s exports.
Another economist Paul Kwengwere warned that failure to improve transport connectivity could turn Malawi into “a passive consumer” of imports from other African economies rather than being an active producer.
On digital trade systems, Kwengwere cautioned that Malawi could face delays in integrating into emerging regional payment platforms such as PAPSS if macroeconomic imbalances persist.
