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, including with South Africa, Zimbabwe, and Botswana. A customs agreement with Botswana (1956) allows duty-free trade of most goods originating in either country.

• AfCFTA: Ratified; seen as critical for unlocking export potential. The National Export Strategy II prioritizes capitalizing on the continent-wide market.
• SADC: Member benefiting from preferential access via the SADC Trade Protocol.
• COMESA: Founding member of the COMESA Free Trade Area, enabling duty-free trade with partners like Kenya.

• Malawi Investment and Trade Centre (MITC): One-stop shop to promote and facilitate investment and exports (Investment and Export Promotion Act, 2012). Services include project appraisal, site identification, permits assistance, and JV facilitation.
• Investment Freedom: The Constitution guarantees freedom to invest and own property. Foreign investors generally receive national treatment with no ownership restrictions in most sectors (100% foreign ownership allowed). For IPOs, foreign participation is capped at an aggregate 49%—not applicable to subsequent trading.

• Aligned with SADC and COMESA common external tariffs; all imports declared with duties calculated on CIF value.
• Industrial Policy Focus: Import substitution in wood products, leather goods, and pharmaceuticals to encourage local production.
• Maximum tariff rate: 25%.

Malawi is transitioning from exporting raw agricultural commodities to producing and exporting value-added goods and services—a central pillar of Malawi Vision 2063 and the National Export Strategy II (NES II).

Current Trade Snapshot:

• Primary Exports: Tobacco (dominant), groundnuts, tea, and dried leguminous vegetables—highlighting the urgency of diversification.
• Key Imports: Petroleum products, fertilizers, pharmaceuticals, and second-hand clothing—indicating opportunities for import substitution.

• Agriculture & Agribusiness
  • Potential: Commercialisation, diversification, and value addition—moving beyond raw tobacco, tea, and sugarcane to higher-value processing; developing oilseeds and horticulture value chains.
  • Value Addition: Grow agro-based industries to create jobs and provide stable markets for farmers.
• Mining – Beyond Extraction
  • Untapped Potential: Significant resources: rare earths, uranium, niobium, bauxite—key driver of industrialisation.
  • Value Capture: Kanyika Niobium Project offtake secured; off-take deals for rare earths (Songwe Hill) and uranium (Kayelekera), with government equity stakes.
• Manufacturing Growth
  • Industrialisation Pillar: Build a resilient, self-sufficient economy under MW2063.
  • Import Substitution: Target sectors include pharmaceuticals, wood products, and leather goods; NES II prioritises competitiveness of “Made in Malawi” for regional/global markets.

As a land-linked country, Malawi’s competitiveness hinges on efficient transport and logistics through regional corridors and modern trade systems.

• The Nacala & Beira Corridors:
  • Strategic Gateways: Primary routes to the sea via Mozambique’s ports of Nacala and Beira—vital for exports like tobacco and tea.
  • Impact: Corridor efficiency directly affects transport costs and trade volumes; ongoing development aims to upgrade infrastructure and streamline logistics.

• National Single Window: Officially launched in May 2025. A single electronic portal for all regulatory documents, aiming to cut clearance times, reduce costs, and increase transparency. Integrates with MRA’s ASYCUDA World system; phased rollout targets 22 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 delivered a 16.2% reduction in processing time and a 43.2% decrease in documentation errors.