A new Malawi Trade Report shows that the country’s exports declined by 7.1 percent in 2024, widening the trade deficit to US$2.36 billion.

The inaugural report, released today by the Export Development Fund (EDF), indicates that Malawi imported goods worth US$3.3 billion against export earnings of US$958.5 million during the year.

According to the report, Malawi contributed only 0.004 percent to global trade and 0.364 percent to Africa’s total trade, underscoring the economy’s limited participation in international markets.

EDF Board Chairperson, Dr. Ted Nankhumwa, says Malawi’s trade performance can improve if the country fully leverages regional trade blocs such as SADC, COMESA, and the African Continental Free Trade Area (AfCFTA).

The report highlights that Malawi remains heavily dependent on agricultural exports yet continues to struggle to balance the trade equation. It notes that Malawi contributes only US$4 for every US$100,000 traded globally.

However, it suggests that increasing production of groundnuts, tea, soybean, cane sugar, and soybean oilcake could help Malawi unlock an estimated US$200 million in untapped intra-African market opportunities.

Dr. Nankhumwa says Malawi must prioritise strategic imports while boosting local production of goods that can be manufactured domestically to narrow the widening trade gap.

“We need to bear in mind how to increase our exports and substitute imports with locally produced commodities. We must prioritise new avenues, especially in the service sector, so we don’t continue bleeding as we are doing now,” said Nankhumwa.

“If we are to compete on the global stage, we need to produce more. We have the potential to rebound.”

Minister of Industrialisation, Business, Trade and Tourism, George Partridge, emphasised diversification as key to addressing persistent trade imbalances and building on gains made in tobacco production and sales.

He said the government is accelerating efforts to broaden the export basket by supporting sectors beyond tobacco, including manufacturing, mining, and agro-processing. 

According to Partridge, expanding the export base will reduce overreliance on a few commodities and help stabilise foreign exchange inflows year-round.

“There are things already on the ground that are not being utilised. We need to implement them now. That is why the trade deficit continues to deteriorate. We’re losing a lot of dollars, and this report must be adopted to ensure we industrialise and take advantage of regional market opportunities,” said Partridge.

The report was developed in collaboration with the University of Malawi’s Department of Economics.