Ministry of Trade and Chinese government have signed an agreement to allow Malawi export to the Asian country products duty free.
Minister of Trade and Industry, Joseph Mwanamveka who signed the pact on behalf of government on Wednesday described the agreement as a positive step to help scale up Malawi’s export base.
“The agreement will allow us as a country export tobacco, cotton, Pigeon Peas, Soya and other products duty free. Our exports have been minimal and this trade agreement is an opportunity to increase the base,” Mwanamveka said.
The trade agreement comes at the time when Chinese government plans to increase its trade investment to Malawi from US$40 million to US$250 million.
“Such trade agreements are in line with our vision of turning the country from a predominantly importing to a producing and exporting
one,” Mwanamveka added.
Malawi’s trade volume with China hit a record high of $100 million (K25 billion) in 2011, representing a 400 percent jump over 2010.
Malawi, like other African countries, has been exporting 95 percent of its export products to China duty free.
China boasts of over 1.3 billion people which, translated into increased demand for goods and services from outside economies such as