Malawi’s trade deficit widened to $322.5 million (about K565 billion) in May this year despite an increase in export earnings, latest figures from the National Statistical Office (NSO) show.
The International Merchandise Trade Statistics Bulletin for May 2026 indicates that exports rose by 26.4 percent to $43.7 million from $34.6 million recorded in May 2025.
However, imports increased at a faster pace, climbing 16.4 percent to $366.2 million from $314.7 million over the corresponding period.
The trade deficit widened by 15.1 percent from $280 million to $322.5 million.
The figures further show that exports covered only 12 percent of the country’s import bill during the month.
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On month-to-month basis, exports fell sharply, by 65.5 percent, from $126.8 million in April to $43.7 million in May while imports rose by 23.2 percent from $297.3 million to $366.2 million.
This pushed the trade deficit up by 89.2 percent from $170.5 million in April.
The figures show that tobacco remained Malawi’s leading export commodity, generating $16.5 million and accounting for 37.8 percent of total exports.
Tea contributed $6.1 million, or 13.8 percent, while groundnuts earned $3.9 million, representing 8.9 percent of exports.
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The country’s top 10 export commodities accounted for 75.9 percent of total export earnings.
Fuel continued to dominate the imports value, as petrol imports were valued at $70.1 million, representing 19.1 percent of total imports, followed by diesel at $59.7 million or 16.3 percent.
Fertiliser imports stood at $19.7 million, accounting for 5.4 percent of the import bill.
Economics Association of Malawi President Bertha Chikadza said the figures underlined the need for Malawi to diversify its export base and reduce dependence on tobacco.
She said products such as macadamia nuts, dried common peas, chickpeas and raw sugar offered opportunities for export growth because demand was rising on international markets.
“Malawi needs to shift from the export of raw materials to finished products. This requires significant investment in industrialisation and manufacturing,” she said.
Meanwhile, Ministry of Trade spokesperson Patrick Botha has said the government is pursuing structured commodity markets to improve pricing and formal trade.
“We want to establish commodity exchange markets for key products, just like we have in the tobacco sector. That way, we will be in control of pricing and negotiate better markets for producers and traders,” Botha said
