By Sheminah Nkhoma
The Export Development Fund (EDF) launched its report revealing a 7.1 percent decline in trade in 2024, despite a 9 percent increase in services exports.
During the report launch on Tuesday in Lilongwe, Minister of Industrialisation, Business, Trade and Tourism George Patridge urged local authorities to overhaul Malawi’s trade strategy to prevent ongoing deficits.
The minister stated that exports were valued at $958.5 million while imports reached $3.3 billion, resulting in a $2.36 billion deficit.
He recognised that these findings indicate slow progress in the country’s trade initiatives, emphasising diversification as a vital solution to overcome trade barriers and build on gains from tobacco production and sales.
Patridge highlighted that tobacco remains Malawi’s top exported product, with exports rebounding to $569.9 million—the highest in six years—as evidence that targeted policies and investments are effective.“When we support our producers with the right policies and infrastructure, they can compete globally,” he said.
He further announced government plans to prioritise value addition in sugar and agro-processing, expand industrial parks, and grow digital trade, which comprises nearly half of service exports.
He identified the African Continental Free Trade Area (AfCFTA) as Malawi’s most significant untapped opportunity, noting that the country’s export share within Africa is only 0.3 percent.
“Malawi must move from being a passive participant to an active shaper of its trade future, as the window for action is narrowing,” said Patridge.
Board Chairperson of EDF, Ted Nankhumwa, stated that progress depends on understanding the issues, and the report highlights Malawi’s potential.
“Malawi’s trade performance can improve if the country fully leverages regional trade blocs such as SADC, COMESA, and the AfCFTA markets, as the report indicates Malawi is failing to utilise, missing out on opportunities valued at over $200 million,” Nankhumwa said.
William Mpinganjira, a representative from the public sector, remarked, “This report will enable us as a financial service to identify areas to focus on.”
“For us to finance such services, we first look at areas where Malawi has potential, especially in the export sector. This report is quite informative because it shows us the growth areas the country has,” he added.
Malawi contributes just 0.004 percent to the global market and 0.364 percent to Africa’s total trade.
The EDF, a development finance institution owned by the Reserve Bank of Malawi (RBM), aims to boost Malawi’s productive capacity and diversify the economy.
The launch was held under the theme “Resilience and Realignment: Tracking Malawi’s Trade in a Volatile Global Economy,” tile Global Economy,”
