Malawi and South Africa sign customs deal to crack down on trade fraud worth billions

Malawi and South Africa have signed a new agreement designed to clamp down on customs fraud by allowing tax authorities in both countries to swap information electronically for the first time.

The Malawi Revenue Authority (MRA) and the South African Revenue Service (SARS) put pen to paper on an IT Connectivity Implementation Arrangement, a deal officials say marks a significant step forward for trade cooperation between the two nations.

The signing also pushed forward talks on bringing into force the Customs Mutual Administrative Assistance Agreement (CMAA), a framework agreed between the two governments back in 2019 that provides the legal grounding for sharing customs data.

MRA Commissioner General Felix Kingstone Tambulasi said the arrangement would help authorities spot fraud more easily, including cases of undervaluation, duty evasion and VAT fraud, while also speeding up how quickly cargo clears customs and protecting government revenue in the process.

He revealed South Africa is currently Malawi’s second-largest source of imports, making up around 18 per cent of all imports – a trade relationship worth some US$3 billion in the 2025/26 financial year alone. The new system, he added, has been designed in line with World Customs Organization standards.

SARS Commissioner Dr Ngobeni Johnstone Makhubu called the agreement a major milestone, noting it builds on cooperation between the two administrations dating back to a memorandum signed in 2010. He said using data and intelligence more effectively was central to improving tax compliance, supporting legitimate trade, and boosting revenue collection.

Both sides agreed to fast-track the rollout of the new arrangement and to revisit both the CMAA and the existing 2010 memorandum, with a view to tightening the legal framework used to fight customs fraud and tackle emerging challenges in customs and domestic tax.

Tambulasi also thanked TradeMark Africa for supporting Malawi’s delegation at the signing and for its continued help in setting up the electronic link between the two revenue authorities.

Malawi’s delegation at the ceremony included Director of Policy and Planning Michael Masiya, Commissioner of Customs Patrick Kachingwe, Acting Director of Legal and Company Secretary Anthony Chungu, Head of Modernisation Joseph Khonje, and Deputy Director in the Commissioner General’s Office Abigail.