By Kenneth Zindondo, contributor:
Malawi’s path to stronger economic growth and achieving its 2026 development goals hinges on boosting investment and increasing exports, World Bank’s Senior Private Sector Specialist Ephraim Chilima said.
He was speaking at the University of Malawi when the bank’s officials engaged students and officials from the university’s Department of Economics on the 22nd edition of the Malawi Economic Monitor.
Chilima said the domestic market is too small and limited in purchasing power to drive significant growth on its own.
“Malawi must focus on exporting more to the outside world if we are to meet our ambitious targets for 2026,” he said.
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He said stronger export performance is key to generating foreign exchange, building resilience against external shocks, and supporting overall development.
However, Chilima said Malawi’s exports have declined in recent years while imports have continued to rise, widening the trade gap.
“Exports have become less diversified, with tobacco continuing to dominate goods exports. The forex crisis has hit energy and other exporters hard,” he said.
He said Malawi has too few exporters, producing too little for too few destinations, with many facing low survival rates and high churn. Domestic challenges such as limited access to finance, regulatory burdens, and high transport costs compound the problem.
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World Bank Senior Economist Jacob Engel said non tariff barriers are seriously impeding Malawi’s export potential and creating “thick borders.”
“Exporters face restrictive trade measures, discretionary and unpredictable import and export bans. At borders and along corridors, they encounter long delays and numerous administrative hurdles,” Engel said.
He further said private sector performance has deteriorated due to weak firm level results, governance gaps, regulatory weaknesses and broader business environment challenges.
Meanwhile, Executive Dean of the School of Law, Economics and Governance, Professor Happy Kayuni, said Malawi must prioritise reforms to boost exports.
“We must improve customs procedures and scale up digital trade solutions to reduce inconsistencies and make trading easier and faster,” Kayuni said.
