Malawi is actively implementing policies to diversify its economy beyond its traditional reliance on agriculture, create an attractive and transparent investment climate, and deepen its integration with regional and global markets. The overarching goal, as articulated in long-term plans like the Malawi Vision 2063, is to transform the nation into an inclusively wealthy and self-reliant industrialized country. A key strategy is to use trade as a tool for structural transformation, building a robust productive base, and moving up the value chain.

• World Trade Organisation (WTO): As a member of the WTO, Malawi is integrated into the global rules-based trading system, which governs its trade relations with numerous partners.
• Bilateral Agreements: Malawi maintains several bilateral trade agreements to enhance economic ties. Key agreements include those with South Africa, Zimbabwe, and Botswana. A customs agreement with Botswana, dating back to 1956, allows for duty-free trade of most goods originating in either country.

• AfCFTA (African Continental Free Trade Area): Malawi has ratified the AfCFTA Agreement and views it as a critical framework for unlocking its export potential. The National Export Strategy II specifically prioritizes capitalizing on the continent-wide market to achieve its diversification goals.
• SADC (Southern African Development Community): As a member of SADC, Malawi benefits from preferential access to a large regional market through the SADC Trade Protocol.
• COMESA (Common Market for Eastern and Southern Africa): Malawi is a founding member of the COMESA Free Trade Area (FTA), which provides for duty-free trade among member states, facilitating smoother trade with key regional partners like Kenya.

• Malawi Investment and Trade Centre (MITC): The primary government agency acting as a one-stop shop to promote and facilitate investment and exports. Established by the Investment and Export Promotion Act of 2012, MITC provides services such as project appraisal, site identification, assistance with permits, and joint venture facilitation.
• Investment Freedom: The Constitution of Malawi guarantees the freedom to invest and own property. Foreign investors are generally granted national treatment with no restrictions on ownership or sector, allowing for 100% foreign ownership in most areas. However, foreign participation in a company's Initial Public Offering (IPO) is limited to a 49% aggregate stake, a restriction that does not apply to subsequent trading.

• Malawi's tariff policy is based on the SADC and COMESA common external tariffs. All imports must be declared, with duties calculated based on the Cost, Insurance, and Freight (CIF) value of the goods.
• Industrial Policy Focus: Key sectors for import substitution include wood products, leather goods, and pharmaceuticals, suggesting strategic tariff use to encourage local production.
• Maximum tariff rate: 25%.

Malawi is implementing a clear strategy to transition from an exporter of raw agricultural commodities to a producer and exporter of value-added goods and services. This is a central pillar of the Malawi Vision 2063 and the National Export Strategy II (NES II), which aim to make Malawi a competitive and sustainable sourcing destination.

Current Trade Snapshot:

• Primary Exports: The economy is heavily reliant on a few key agricultural products. Tobacco is the dominant export, followed by groundnuts, tea, and dried leguminous vegetables. This narrow export base makes economic diversification a critical national priority.
• Key Imports: Major imports include petroleum products, fertilizers, pharmaceuticals, and second-hand clothing. This highlights significant opportunities for import substitution through local manufacturing and production.

• Agriculture & Agribusiness
  • Potential: Agriculture is the backbone of the economy, and the government's strategy focuses on commercialisation, diversification, and value addition. The goal is to move beyond exporting raw tobacco, tea, and sugarcane to processing these into higher-value products and developing other value chains like oilseeds and horticulture.
  • Value Addition: The vision emphasises the growth of agro-based industries to create jobs and provide a ready market for agricultural produce.
• Mining – Beyond Extraction
  • Untapped Potential: Malawi possesses significant mineral resources, including rare earth elements, uranium, niobium, and bauxite. The mining sector is identified as a key driver for industrialisation.
  • Value Addition: Recent developments show a strategic push to ensure value is captured domestically. For instance, the Kanyika Niobium Project has secured an offtake agreement for its output, signalling market confidence. Similarly, off-take deals have been signed for rare earths from the Songwe Hill project and uranium from the Kayelekera mine, with the government securing equity stakes in these projects.
• Manufacturing Growth
  • Industrialisation Pillar: Industrialisation is a core pillar of Malawi Vision 2063, aiming to build a resilient and self-sufficient economy.
  • Import Substitution: The National Industrial Policy explicitly targets import substitution in sectors like pharmaceuticals, wood products, and leather goods to reduce reliance on imports and build domestic capacity. The NES II also prioritizes enhancing the competitiveness of "Made in Malawi" products for regional and global markets.

As a land-linked country, Malawi's trade competitiveness is heavily dependent on efficient transport and logistics. The government is focused on leveraging key regional corridors and modernizing trade systems.

• The Nacala and Beira Corridors: A Regional Lifeline
  • Strategic Gateways: These corridors are Malawi's most critical routes to the sea, connecting it to the ports of Nacala and Beira in Mozambique. They are essential for transporting the country's main exports, such as tobacco and tea, to international markets.
  • Impact: The efficiency and development of these corridors directly impact transport costs and trade volumes. High transport costs can significantly reduce the competitiveness of Malawian products. Development efforts within these corridors aim to improve infrastructure and streamline logistics to boost trade.

• National Single Window: Malawi officially launched its National Single Window system in May 2025. This electronic platform allows traders to submit all regulatory documents through a single portal, aiming to dramatically reduce clearance times, cut costs, and increase transparency. The system integrates with the Malawi Revenue Authority's ASYCUDA World system and is being rolled out in phases, with a plan to include 22 government agencies by September 2025.
• Customs Modernisation: In partnership with the Global Alliance for Trade Facilitation, a new licensing framework and training for customs clearing agents has already resulted in a 16.2% reduction in customs processing time and a 43.2% decrease in documentation errors, improving the speed and reliability of cross-border trade.