Malawi yet again, failed to tame its appetite for foreign products in 2024, evidenced by a 6.3 percent widening in its trade deficit.
A trade deficit occurs when a country’s imports exceed exports.
Latest figures from the National Statistical Office (NSO) show a steady rise in Malawi’s trade deficit, where, in 2022, it was recorded at -$2.10 billion, which worsened to -$2.17 billion in 2023.
The trade deficit was further recorded at -$2.31 billion in 2024 representing a 6.3 percent jump when compared to 2023 figures.
This is stemming from a corresponding increase in imports. For example, in 2022, total imports amounted to $2.99 billion which rose to $3.14 billion in 2023.
Further, imports surged to $3.26 billion in 2024.
However, Malawi’s exports, while increasing, have remained minimal, recorded at $863.67 million in 2022, $919.8 million in 2023, and $927.3 million in 2024. Meanwhile, a January 2025 trade bulletin published recently by the NSO indicates that there was growth in both exports and imports.
According to the bulletin, total exports for January 2025 amounted to $126.7 million, showing a 221.6 percent growth compared to $39.4 million in January 2024.
It further indicates that total imports increased from $224.2 million in January 2024 to $273.5 million in January 2025 reflecting a 22 percent increase.
“As exports grew at a faster rate than imports, the trade deficit narrowed to $146.8 million in January 2025, down by 20.5 percent from $184.7 million in January 2024. The export-to-import ratio was 0.46, indicating that exports were equivalent to 46 percent of the value of imports in January 2025,” the bulletin reads.
In an interview, Economics Association of Malawi President Bertha Chikadza said such trends can be tamed by implementing measures aimed at increasing exports and reducing imports, or both.
“The 2025-26 budget has outlined some measures aimed at increasing exports and reducing imports. Such measures include incentivising production, supporting export diversification, including high valued products sectors and digital export trade,” Chikadza said.
Economist Marvin Banda said the import and export portfolio paints a picture of a nation which even though is in economic peril still insists on transacting in goods that are not pertinent to economic recovery and growth.
“Trade tariffs have to be placed on imports that the nation has competing substitutes in order to excite the use of Malawian made products,” Banda said.
Presenting the 2025-26 national budget statement in Parliament last week, Minister of Finance Simplex Chithyola Banda said Malawi has to produce and export to protect foreign exchange reserves.
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