Malawi reduces trade restrictions within COMESA

Date:

The Ministry of Trade and Industry has expanded the list of goods eligible for trade under the Common Market for Eastern and Southern Africa (COMESA) Simplified Trade Regime (STR). This decision follows concerns raised during the COMESA STR Policy Dialogue held in Kenya last month and will enable traders to import and export a broader range of items, particularly those dealing in low-value consignments.

Patrick Botha, spokesperson for the Ministry of Trade and Industry, stated that this expansion aims to reduce trade costs and improve market access for small-scale businesses. He emphasized, “We are committed to creating a level playing field for these traders. By expanding the common list, we hope to encourage more entrepreneurs to participate in cross-border trade and contribute to the country’s economic growth..”

The expanded list now includes agricultural products, live animals, food items, furniture, stationery, and other assorted goods. However, some delegates at the policy dialogue expressed concern over the exclusion of products that, despite having originating status within the region, have not been included in the list. STR regulations exempt goods that contain components from non-COMESA countries.

In response, Malawi Investment and Trade Centre CEO Paul Kwengwere assured that local cross-border traders would not be negatively impacted, as each border post has a specific list that is updated regularly to reflect new developments.

Steve Yohane, president of the Cross-border Traders Association of Malawi, welcomed the move but called on authorities to harmonize the various lists developed by the government. He mentioned, “We reached an agreement with Zimbabwe last year, but the government has yet to formalize it. Harmonizing and gazetting these lists would lead to significant improvements.”

James Chimwaza, president of the COMESA Business Council, added that addressing trade barriers, improving digital infrastructure, and enhancing capacity-building initiatives are key to empowering entrepreneurs and boosting the economy.

Although Malawi joined the COMESA STR in 2010 with a threshold of $3,000 to support small-scale informal traders, a recent review by the Trade and Law Centre (Tralac) showed limited progress in trade volume growth. The review suggested that many traders continue to use informal routes and that smuggling remains widespread.

Last year, Malawi’s President Lazarus Chakwera and Zambia’s President Hakainde Hichilema inaugurated the Mwami one-stop border post, where goods under the STR can be traded. Despite successes in the East African Community and discussions about a similar regime under the African Continental Free Trade Area (AfCFTA), more efforts are needed to fully realize the benefits of the COMESA STR in Malawi.

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