For four months in a row, Malawi has seen its merchandise trade balance declining to $131.9 million (K156.0 billion) as at October.
This is according to figures from the Reserve Bank of Malawi published in its October 2023 Monthly Economic Review.
The central bank indicates that the decline stems from a trade balance of minus $179.8 million (K202.8 billion) reported in September 2023, but a little higher if compared to the minus $137.3 million (K142.6 billion) gap in October 2022.
RBM indicates in the report that the merchandise trade deficit narrowed due to a growth in exports and a drop in imports.
Exports increased to US$133.2 million (K156.9 billion) in October 2023 from US$111.9 million (K125.8 billion) in the previous month while imports of goods declined by 9.1 percent to $265.1 million (K312.9 billion) from $291.6 million (K328.6 billion) recorded in September 2023.
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Speaking recently after meeting exporters in Blantyre, Minister of Trade and Industry Sosten Gwengwe challenged private sector players to enhance production of export commodities.
Gwengwe said the government is engaging industry players on strides to improve the output.
“The IMF injection on its own may not yield the intended results in addressing our balance of payment problems. That is why the private sector remains key in making sure that these positive developments continue,” Gwengwe said.
Economics Association of Malawi President Betchani Tchereni said the country should work towards diversifying the economy.
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Tchereni said, for example, the mining sector has untapped potential which if rigorously explored may help grow the economy.
“I am appealing to the government, the mining company, and the authorities to start because the more we wait the more we delay the huge exports and job creations that may come with mining,” Tchereni said.
Malawi is still struggling to widen its export base as the country’s production remains in its infant stage.
