Africa-Press – Malawi. Malawi’s strides to shift towards export-oriented industrialisation seem to be yielding fruit, albeit minimal, as latest figures show a pick-up in total export trade value.
Malawi is pursuing various policies including the National Export Strategy (NES II) in its attempt to narrow the ever yawning trade deficit and ensure export-led economic growth.
To be implemented between 2021 and 2026, the second NES is crafted in a way to facilitate an increase of exports as a percentage of gross domestic product from 14.6 percent to at least 20 percent.
The strategy’s main objectives include increasing the contribution of exports to the economic and social transformation, promoting diversification of products and markets, and enhancing international competitiveness of Malawi’s industries, enterprises and products.
Figures show that, as at close of 2021, trade value picked up to $1.019 billion from $880 million in 2018. However, the value went down again in 2022 to $940.8 million.
Fluctuations of numbers within the first two years of NES II implementation period has made commentators doubt the possibility of Malawi’s attainment of the growth aspirations.
But the Malawi Investment and Trade Centre (MITC), a government entity mandated to oversee trade promotion, has said the country is poised to realise NES II dreams within the set timeframe.
Paul KwengwereIn an interview Tuesday, MITC Chief Executive Officer Paul Kwengwere said the country is working on enhancing production, working on value addition while scouting for more market opportunities within and outside Africa.
“We have also made progress on export development but I would be quick to point out that we should improve the pace of implementation of our programmes. That would deliver quick and huge results to improve our trade balance by 2026,” Kwengwere said.
He cited fast-tracking the implementation of megafarms, the Shire Valley Transformation programme, setting up of special economic zones and mobilising investors among interventions required for Malawi to attain the Nes II aspirations.
“The country is also making huge progress on export trade promotion, development and facilitation which is in line with goal number three of the NES II. But in a separate interview, economist Marvin Banda said Malawi’s approach to actualising the strategy lacked clear coordination and corroboration.
He lamented slow take-off of projects in sectors such as mining and tourism, saying the situation defuses the aspiration of diversifying the economic base.
“The challenges the country has been facing are not new; yet we are taken by surprise when implementation of our plans doesn’t go as required,” Banda said. Malawi—a net-importer—is banking on the African Continental Free Trade Area, among others, for a market opportunity for its export products.
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