By Kingsley Jassi
Traders plying between Malawi and Mozambique have been given an easier border access to ensure they thrive and boost the two countries’ trade volumes following the signing of Simplified Trade Regime (STR).
This is the first ever STR between the two countries and was signed on Friday in Lilongwe under the Southern African Development Community (Sadc) protocol after six months of negotiations. The process was supported by the World Bank.
Malawi is a net importer, and according to United Nations’ Comtrade figures, in 2023 Malawi imported goods worth $107.7 million against exports valued at $28 million.
But according to Minister of Industry and Trade Sosten Gwengwe, with the arrangement in place, cross border trading with goods worth up to $3 000 will enjoy the preferential customs procedures that will be less tedious at the border posts.
“By simplifying customs procedures, harmonising the threshold value and common list of products under the STR, we are not only facilitating trade for our small-scale cross border traders between our two countries, but also empowering them to compete at regional and global scale,” he said.
However, Gwengwe challenged agencies like the Malawi Revenue Authority, the Immigration Department and their Mozambican counterparts to follow the agreement with eased procedures for the traders as they cross the border.
He said three months after the MOU signing, there will be a review to check if there has been improved experience of crossborder traders, pirsuant to the STR.
Mozambican Minister of Industry and Commerce Silvino Augusto Jose Moreno, said the two countries’ natural and infrastructural connections through two corridors underscore the need to continue improving the business environment to make the cooperation more competitive and strategic within the context of the Sadc and across the African continent.
“The economic diplomacy approach that Mozambique has been implementing, especially with Malawi, finds greater expression in the Preferential Trade Agreement and the One-Stop Border Post Agreement signed in 2021,” he said.
He further said in addition to seeking to improve the well-being and quality of life of the two populations, there is also an aim to promote economic diversification through increased exports and investments, with a special focus on the participation of micro, small and medium enterprises.
The Simplified Trade Regime Framework negotiation meetings and other technical support were from the World Bank through the Southern Africa Trade and Connectivity Project under the Ministry of Transport and Public Works.
Malawi has bilateral STR agreements with countries like Zambia and Zimbabwe under the Comesa protocol and had no STR agreement under Sadc.
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