WTO accession
31 May 1995
Population
15,380,888
Per capita growth rate (%)
2.6
Poverty head count (%)
50.4
WB Ease of Doing Business rank
155
Share of international non-oil trade (%)
0.835
Value of non-oil goods traded (in US$ million)
2314
Logistics performance Index (LPI)
2.27
2011 data - Sources: UNCTAD, World Bank, WTO, UN Comtrade

Malawi joined the Integrated Framework (IF) in 2001 and undertook preparations for its Diagnostic Trade Integration Study (DTIS). The DTIS was validated in September 2003, and its recommendations were incorporated into the 2003 National Growth Strategy for Malawi. In 2006, the DTIS was reviewed and updated in the light of new trade developments, which recommendations were incorporated in the 2006 Poverty Reduction Strategy Paper (PRSP).

 

Subsequently, two projects were launched under the IF Trust Fund Window II: Trade Policy Advisory Services and Capacity Building for Trade Integration; and Standardization, Quality Assurance and Management to improve the capacity of the Malawi Bureau of Standards.

Description of the projects (objectives and interventions)

Under the EIF, Malawi's Tier 1 'Support to National Implementation Arrangements (NIAs)' project is under implementation since July 2011, having been approved by the EIF Board in June 2011 after revision of the project approved in September 2009. The project aims at strengthening the in‐country capacities to implement the EIF, i.e., mainstream trade, address supply‐side constraints, facilitate donor coordination and priority actions identified in the DTIS and its Action Matrix.

The Tier 1 project is focused on supporting the implementation of the National Export Strategy (NES), the Malawi Growth and Development Strategy (MGDS II 2011-2016) and training Government staff on trade mainstreaming and trade-related issues.

Main progresses to date

Malawi finalized and validated its DTIS Update (DTISU) with the World Bank in 2013. The DTISU brings up-to-date the 2003 DTIS and focuses on identifying and quantifying the trade costs constraining Malawi’s competitiveness within regional and international markets as the basis for developing a streamlined and updated Action Matrix. The DTISU identifies trade-related constraints holding Malawi back from diversifying and deepening its production base, and increasing trade.

Trade, Industry and Private Sector Development (TIP) Sector-wide Approach Programme (SWAp) - TIP SWAp programming was launched to support the implementation of the NES and the MGDS. Moreover, under the TIP SWAp, a Joint Sector Strategy was developed to support the incorporation of trade activities into the sector strategy. The TIP SWAp also provides a platform for Government donor consultation and coordination on Aid for Trade (AfT).

The EIF National Implementation Unit (NIU) has been strengthened and consolidated in the TIP SWAp and NES structures. The NIU is composed of Government officials and is attached to the Department of Foreign Trade, supported by an external project advisor. Apart from the EIF, the NIU team supports the implementation of the NES and TIP SWAp programmes and to some extent, the trade facilitation programme.

Trade has also been incorporated into the MGDS II, covered in Theme I, Sub-theme IV on Industry and Trade. In 2013, codes of trade activities that support the MGDS II were incorporated into the Public Sector budget preparation framework and NES activities were incorporated into the national budget.

The NES launched in December 2012 complements the MGDS, and is the main trade strategy targeting national competitiveness and exports in prioritized sectors such as oil seeds, sugar and manufacturing. The NES has been implemented through the TIP SWAp framework supported by the Ministry of Industry and Trade (MIT)/NIU.

With support from the EIF NIU, a Trade Policy Research Unit was established in the MIT to provide training for staff on trade policy analysis and research skills. A trade mainstreaming module was also rolled out with UNDP to help define a capacity building plan for MIT and other stakeholders/line Ministries.

A Tier 2 programme consisting of two project components on promoting of smallholder farmer linkages to agro-processors and supporting the agro-processing special economic zone road map as well as the promotion of value-added exports was developed under the coordination of the NIU and approved by the EIF Board for implementation in September 2014.

A trade promotion film, "Connecting local skills to markets" was developed in 2013 by the NIU to promote the production, marketing and exports of the arts and crafts industry in Malawi.

Outcome 1: Sufficient Institutional and management capacity built in EIF countries to formulate and implement Trade related strategies & implementation plans
Outcome IndicatorBaseline2013201420152016
O1.1 Tier 1 ' Support to NIAs' project completed or under implementationNoYes
O1.2 EIF Country with complete, up-to-date validated DTIS Action MatricesNoYes
O1.3 Level of capacity of NIU to perform fiduciary programme management for Tier 1 project33
O1.4 Country with up-to date trade strategiesNoYes
O1.5 Country with quality trade strategyN/A1
O1.6 Country with quality trade strategy implementedN/A3
Outcome 2: EIF countries mainstream trade into their national development strategies and plans
Outcome IndicatorBaseline2013201420152016
O2.1 Trade in PRSP and/or National development strategiesN/A2
O2.2 Existence of productive sector strategies integrating the trade dimensionYesYes
O2.3 Functioning public/private consultation mechanism21
Outcome 3: Coordinated delivery of trade related resources (funding, TA etc.) by donors & implementing agencies to implement country priorities following adoption of DTIS Action Matrix
Outcome IndicatorBaseline2013201420152016
O3.1 Availability of an annual rolling implementation overview integrating all trade-related government & donor-supported activities (including gender & environment)NoYes
O3.2 Frequency of government and donor consultations on trade-related matters32
O3.3 UN CEB Cluster activities based on DTIS Matrix priorities in EIF CountriesYesNo
O3.4 Country with joint donor initiatives in the trade area (such as need assessment; strategy formulations; programming; pooled funding; M&E; etc.)NoYes
Outcome 4: EIF Countries secure resources in support of initiatives that address DTIS Action Matrix priorities
Outcome IndicatorBaseline2013201420152016
O4.1 Country with implementation plan integrating DTIS/Action Matrix priorities and indicating financing needs to be met through ODAN/A4
O4.2 Country where a Government budget exists for implementation of its trade strategyYesYes
O4.4 Number of projects funded by donors related to the DTIS Action Matrix10
O4.4.1 Amount of projects funded by donors related to the DTIS Action Matrix (Million USD)80

DTIS Update

Starting date / End date
20/07/2012
Approved Budget
198,869
Board Approval Date
23/09/2009
Disbursement
198,869
Expenditure Reported
198,869
MOU Approval Date
20/07/2012
MOU Expiry Date
31/12/2013
Phase
Completed

NIA Support - Phase 1

Starting date / End date
08/12/2009
Approved Budget
899,250
Board Approval Date
23/09/2009
Disbursement
899,250
Expenditure Reported
887,403
MOU Approval Date
23/11/2009
MOU Expiry Date
31/08/2018
Phase
Implementation

NIA Support - Phase 2

Approved Budget
300,000
Board Approval Date
11/07/2016
Disbursement
0
Expenditure Reported
0
MOU Approval Date
12/07/2016
MOU Expiry Date
31/08/2018
Phase
Implementation

Promotion of Smallholder Farmer Linkages to Agro-Processors Through the Anchor Farm Model Project

Starting date / End date
05/12/2014
Approved Budget
1,648,750
Board Approval Date
16/09/2014
Disbursement
500,000
Expenditure Reported
426,162
MOU Approval Date
10/11/2014
MOU Expiry Date
09/11/2017
Phase
Implementation

Support to Agro-Processing Special Economic Zone Road Map & Promotion of Value-Added Exports - MITC

Starting date / End date
16/12/2014
Approved Budget
1,550,818
Board Approval Date
16/09/2014
Disbursement
550,000
Expenditure Reported
255,103
MOU Approval Date
10/12/2014
MOU Expiry Date
09/12/2017
Phase
Implementation

Focal Point

Ms. Christina Zakeyo CHATIMA
Department of Trade, Director for Trade
Ministry of Industry and Trade
P.O. Box 30366
Lilongwe, Malawi
Tel: +265 1 770 244, +265 888 728 129

EIF NIU Team

Mrs. Bridget Chifundo KAUMA
Assistant Director of Trade
Ministry of Industry and Trade
P.O. Box 30366 Gemini House
Lilongwe, Malawi
Tel: +265 1 770 244
Ms. Joy HARA
Department of Trade, Economist
Ministry of Industry and Trade
"P.O. Box 30366 Gemini House"
Lilongwe, Malawi
Tel: TBE

Donor Facilitator

Ms. Milika KALYATI
Economics and Public Affairs Section, Economist, Trade and Development
European Commission
Delegation of the European Commission to Malawi
Lilongwe, Malawi

WB Contact

Ms. Appolenia MBOWE
Senior Economist
The World Bank
-
Lilongwe, Malawi
Tel: +265 1 770 611
Ms. Priscilla Flaness KANDOOLE
Economist
The World Bank
-
Lilongwe, Malawi
Tel: -
Mr. Mombert HOPPE
Trade Economist (only for DTIS)
The World Bank
-
-, Malawi
Tel: +1 202 473 3178

UNDP Contact

Mr. Richard DICTUS
UN Resident Coordinator
UNDP
Lilongwe, Malawi
Tel: +265-1-773-500
Ms. Flore-Smereczniak CAROL
Country Office, Deputy Resident Representative-Programme
UNDP
UNDP -Malawi, P.O.Box 30135, Lilongwe 3
Lilongwe, Malawi
Tel: +265 1 773 500
Ms. Cinzia TECCE
UNDP
Lilongwe, Malawi
Tel: +265 999 504 275
Malawi Annual Progress Report 2013
Malawi DTIS Update 2014
EIF LDCs Photo Competition Album
Poverty Reduction Strategy Paper – Growth and Development Strategy 2006-2011
Malawi Diagnostic Trade Integration Study (DTIS) 2004
Malawi DTIS Volume 2 Chapter 2: Customs 2002
Malawi DTIS Volume 2 Chapter 1: Regional Trade 2002
Malawi DTIS Volume 2 Chapter 3: Transport 2002
Malawi DTIS Volume 2 Chapter 4: Tobacco 2002
Malawi opens consulate, trade office at Tete in Mozambique
Malawi opens consulate, trade office at Tete in Mozambique
Malawi opens consulate, trade office at Tete in Mozambique
EIF LDCs Photo Competition: Malawi “Connecting local skills to markets using outreach is making the link to tourism value chains and bringing jobs to local communities”
EIF LDCs Photo Competition: Malawi “Connecting local skills to markets using outreach is making the link to tourism value chains and bringing jobs to local communities”
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