MP Dimba: Money alone won’t end Malawi’s forex crisis

Shadow Minister of Finance and  Malawi Congress Party (MCP) Member of Parliament for Lilongwe Phirilanjuzi Constituency, Peter Dimba, has called on the government to establish a One-Stop Export Centre to eliminate bureaucratic delays that are choking exports, as Parliament approved US$130 million (about K229 billion) in World Bank grant financing aimed at strengthening local governance and boosting export-led growth.

Speaking during debate on Wednesday, Dimba said while the financing was a welcome intervention, Malawi would not overcome its chronic foreign exchange shortages unless government removed administrative bottlenecks that discourage exporters.

“The US$130 million is welcome, but money alone will not solve the forex crisis. We must reduce bureaucracy and ensure resources are directed to firms that have the capacity to produce and export,” Dimba told Parliament.

Parliament approved two financing bills backed by the International Development Association (IDA): an US$80 million Governance to Enable Service Delivery (GESD) Project and a US$50 million Transforming High-Potential Resilient Value Chains Project.

The export value chains project is designed to strengthen Malawi’s export sector by providing performance-based grants to qualifying firms, improving access to finance, supporting export-oriented businesses and strengthening implementation of trade policies.

The project will also establish mechanisms to improve transparency in export restrictions and expand access to local and foreign currency financing through instruments such as partial credit guarantees and lines of credit.

Dimba welcomed the initiative but stressed that the benefits should be directed to productive businesses rather than politically connected beneficiaries.

“This money must go to companies with the capacity to manufacture, add value and export—not to politically connected individuals,” he said.

The opposition legislator identified lengthy delays in processing export permits as one of the biggest obstacles facing Malawi’s exporters, saying some businesses wait as long as a year to obtain the necessary approvals.

He argued that establishing a One-Stop Export Centre would bring all licensing and regulatory agencies under one roof, significantly reducing processing times and making it easier for businesses to access export markets.

“Exporters cannot wait 12 months for a permit while the economy is bleeding foreign exchange. A One-Stop Centre would streamline processes, reduce bureaucracy and help rebuild Malawi’s forex reserves,” Dimba said.

Lawmakers from both sides of the House supported the financing bills, agreeing that increasing manufacturing, expanding exports and improving the business environment are essential if Malawi is to narrow its trade deficit and address persistent shortages of foreign currency.