By Grace Makawa:
Malawi’s ability to benefit from the African Continental Free Trade Area (AfCFTA) will depend on how quickly the country addresses structural challenges, increases investment and identifies products and services that can compete in the continental market, experts say.
This comes at a time a readiness study, to be released by the Ministry of Trade, is expected to contribute to that process by helping identify where Malawi stands as it seeks to position its goods and services within the continental market.
In an interview, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) President Ronald Ngwira said the AfCFTA was an exciting opportunity for Malawi.
He, however, said volumes involved and implementation needed to be carefully examined.
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“Most importantly, it is about good management,” Ngwira said.
Ngwira said Malawi needed to look closely at the volumes it could produce and how AfCFTA would be implemented.
He said effective management would be central to determining whether the country could turn the agreement into meaningful economic opportunities.
AfCFTA provides Malawi with access to a continental market of more than 1.3 billion consumers, creating opportunities beyond traditional agricultural exports.
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This broadens the potential benefits for Malawi, as companies would not only be looking to sell agricultural and manufactured products across borders but could also provide services in other African markets.
For the agriculture sector, the government is looking at investments that can develop long-term and potentially higher-value value chains.
country is exporting
Ministry of Trade spokesperson Patrick Botha said Malawi needed to critically examine what the country was exporting and identify areas with greater potential to generate value.
Botha said the government had been engaging the private sector on investment opportunities, with some companies committing to invest in agriculture.
He cited macadamia production as one of the areas that were attracting investment interest, saying long-term agricultural products could generate more returns than some other value chains.
“We need to scrutinise what the country is exporting,” Botha said.
Botha said the ministry had also released a study assessing Malawi’s readiness to participate in the continental market, describing it as one step in navigating the country’s preparedness for AfCFTA.
Botha said the size of the market should be viewed in terms of the constant demand it represents, with more than 1.3 billion people requiring food throughout the year.
He said the demand also extended to clothing, presenting opportunities for sectors such as textiles.
Botha said AfCFTA also covers trade in services, creating potential opportunities for Malawian businesses in sectors including information and communication technology, health, education, tourism and construction.
