The Government of Malawi has signed a Simplified Trade Regime (STR) Agreement with the Government of the United Republic of Tanzania, a move aimed at deepening economic cooperation between the two countries.
The agreement comes amid concerns from small-scale cross-border traders who have long struggled with complicated procedures and legal requirements when moving goods across borders.
In an interview with MIJ Online, Malawi’s Minister of Trade and Industry Simon Itaye said the new regime introduces practical measures to simplify documentation, improve transparency and strengthen coordination among border agencies in both countries.
He said government will closely monitor the implementation of the agreement and work with relevant stakeholders to address any challenges that may arise.
Meanwhile, Dr. Eluphy Nyirenda, Country Director for Alliance for a Green Revolution in Africa (AGRA) Malawi, described the agreement as a milestone after lengthy negotiations.
She added that the agreement provides duty-free access to a pre-agreed list of goods worth up to 2,000 US dollars, including agricultural commodities of interest to AGRA, and is expected to help farmers earn more and strengthen cross-border markets.
On her part, Tanzania’s Minister of Industry and Trade Judith Kapinga said the STR is expected to stimulate economic growth in both countries.
She noted that traders from Malawi and Tanzania stand to benefit from improved trade facilitation under the new framework.
According to the republic of Tanzania, in 2024, total trade reached 98.2 million US dollars, up from 86.5 million dollars recorded in 2021, representing a 13.5 percent increase.
During the same period, Tanzania’s exports to Malawi rose from 64.0 million dollars to 77.7 million dollars.
However, imports from Malawi slightly declined from 22.5 million dollars in 2021 to 20.5 million dollars in 2024.
Key exports from Tanzania include cement, detergents, soaps, table salt, petroleum jelly and assorted soft drinks.
Malawi’s main exports to Tanzania include MDF plain boards, soya meal and groundnuts.
On investment, Malawi invested 49.31 million US dollars in Tanzania between 1997 and 2026, creating about 708 jobs.