By Benadetta Chiwanda Mia:
The number of active vehicles in the country, as reflected in the Malawi Traffic Information System (Maltis), surged to 381,945 as of December 2024, up from 361,518 in 2023.
This marks an increase of 20,427 new vehicle registrations in 2024.
Motorcycle registrations also rose notably, reaching 31,167 from 27,766 in the previous year, marking a 12 percent increase.
This significant increase highlights growing demand for personal and commercial transport in the face of critical foreign exchange challenges
The development coincides with a worsening trade deficit, driven by the country’s import bills exceeding export earnings—a concern for economic sustainability.
Throughout 2024, Malawi’s imports outpaced exports by a growing margin, with the trade deficit expanding by 6.3 percent from 2023, according to the National Statistical Office.
December 2024 alone saw imports reaching $298.1 million, a 13.6 percent increase from December 2023.
Conversely, exports showed a promising growth of 37.6 percent, amounting to $64.6 million from the previous $46.9 million.
Despite this advancement, the December trade deficit soared to $233.5 million, representing an 8.4 percent rise.
The growing importation of vehicles—particularly second-hand cars—has been cited as one of the major factors depleting the country’s already limited foreign exchange reserves.
Economic expert Marvin Banda described the trend as a “hard pill to swallow”, given Malawi’s weak export capacity.
“Vehicles consume a significant portion of our forex, which is concerning,” Banda said.
Secretary to the Treasury Betchani Tchereni said the situation entailed rising demand for fuel, spare parts and vehicle imports, which was further straining foreign exchange reserves.
“This is why the government has introduced tax incentives for hybrid and electric vehicles to reduce the forex burden caused by fossil fuel consumption,” he said.
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