|Diagnostic Trade Integration Study (DTIS)||2004|
EIF is supporting Malawi to identify and quantify the trade costs constraining Malawi’s competitiveness in regional and international markets and supporting implementation of the country's export and development strategies.
Targeted strategic support in agricultural sectors has been provided with a strong emphasis on value chain addition and increased productivity.
- WTO Trade Facilitation Agreement (TFA) ratified.
- Memorandum of Understanding on One Stop Border Post (OSBP) between Malawi and Zambia signed in May 2017, improving time for goods clearance at the border.
- 44 export-ready SME representatives trained on export procedures and documentation, quality control and requirements, rules of origin, pricing and marketing in April 2017.
- 69 traders (30 men, 39 women) trained in quality management and market opportunities.
- Automated licensing system designed for the filling of all licences issued by Ministry of Industry and Trade and put in place.
- Developed productive sector strategies on sugar, oilseed and manufacturing.
Enhancing trade – Smallholder farmers
EIF worked with local partners to address the multifaceted challenges that smallholder farmers are facing in Malawi.
- Operated two anchor farms of 700 hectares and 850 hectares, and a total of 140 hectares of new land was cleared in 2016 to accommodate newly registered in-grower farmers.
- Worked with 3,537 farmers (385 in-growers and 3,152 out-growers).
- In 2016, yields for in-grower farmers were 30% more for soya beans and 42% more for groundnuts compared to smallholder farmers not participating.
- On average, the yield for out-grower farmers in 2016 was 19% and 35% more for soya beans and groundnuts, respectively, compared to unsupported farmers growing similar crops.
- 1,450 farmers trained in soya threshing, groundnut crop drying using the Mandela Cork method, grading of grain and storage.
- 44 farmers trained on pre/post-harvest handling of soya and groundnuts. These growers in turn trained members of groundnut and soya growing clubs.
- Post-harvest losses in the targeted project area reduced to 9.1% in 2016. The reduction resulted from enhanced application of post-harvest loss management skills and technologies adopted includ ing timely harvest, proper drying and proper storage.
- In 2016, exported 72.91MTs of soya beans to Botswana and 23.07 MTs of groundnuts to Zambia.
- Soya beans valued at $121,917 and groundnuts valued at $64,277 USD processed and certified.
- In the past, farmers have lacked leverage and often have to accept low prices for their products from agro-processors. To help farmers bargain for higher prices, meetings arranged between farmers and agro-processors so they could compare offers, resulting in farmers earning an average price of US$0.77/kg for ground nuts and US$0.54/kg for soya beans in 2016. This was a marked improvement over traditional markets, where the average prices were US$0.38/kg and US$0.40/kg for groundnuts and soya beans respectively.
Enhancing trade – Agro-processing
The Malawi Investment and Trade Centre (MITC) is developing an Agro-Processing Special Economic Zone in order to support the promotion of commercial farming for priority crops. Malawian agro-processed products will be promoted through an MITC office in Tete, Mozambique to operate as a regional marketing office for Malawi’s products.
- Formed task force to spearhead the establishment of Special Economic Zones (SEZs), and land for SEZs identified across the country.
- Established MITC office and Malawi Consular Office in Tete, Mozambique. By designating the office as a consulate and by covering the salary of the MITC officer, the Ministry of Foreign Affairs is ensuring that the office will stay beyond project’s life.
- Completed market analysis in Zambia, revealing opportunity for Malawi to sell products in Lusaka and Chipata.
- Created new MITC website (http://trade.mitc.mw/) to promote interaction between MITC and clientele.
- $US47 million in exports generated
- Supported 15 companies, including 7 SMEs, to attend a trade fair in Zimbabwe. Export orders of over US$195 million generated.
EIF Donor Facilitator (Delegation of the European Union to the Republic of Malawi)
Cuthbert Wadonda Chirwa
NIU Coordinator (Chief Economist - Head of Monitoring & Evaluation Section)
Dr Clement Kumbemba
Director of Trade - EIF Focal Point