Malawi
Exports for Malawi still remain low

Misanet.com / The Nation, 1 November - Though Malawi's exports have for the last three years been improving, they still have a long way to go before they balance with imports, statistics by a recent report released by the National Economic Council (Nec) have shown.

The 2001 Nec report shows that although Malawi's exports, particularly agricultural products, are performing positively as evidenced by their gain over imports, Malawi's trade is yet to gain.

The figures show that although the country's domestic exports have increased from K18.4 billion in 1999 to K22 billion last year, there still remained a big gap to balance up trade.

By February last year, the trade imbalance was at K2.6 billion while the figure improved to K1.5 billion in February this year. "This is quite a big gap and when you look at annual figures, the gain of exports over imports is not very convincing," said an economist with Nec.

He said what was more worrisome was that Free Trade Areas (FTAs) were promoted in the Sadc and Comesa states.

Malawi's commodity production costs are relatively higher than other countries, resulting in uncompetitive prices for local products. In its report, the council attributes Malawi's low exports to high prices and uncompetitive product quality.

- The major challenges of Malawi commodity trade have been price competitiveness, quality and production levels, says the council. "Malawi's prices have been higher at a number of markets which render Malawi's exorts unattractive."

The council observes that production levels for a number of commodities have remained low and that Malawi has failed to satisfy exports requirements. "Even for readily available markets, quality has also been very critical both requiring physical appearance of the commodity and, in some cases, chemical contents," notes the council.

The council says unless Malawi companies improve on quality from production through to marketing, trade balance between Malawi and other countries will remain tilted against local exporters. Malawi relies on agricultural exports for foreign exchange with tobacco as its main earner.

The council also blames the low exports on lack of information to all manufacturers and traders in the country. "There is poor flow of market information to small exporters particularly those in rural areas," it says.

By Isaac Masingati,
The Nation (Malawi)

 

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