Malawi, Tanzania ease cross-border trading

Malawi and Tanzania yesterday signed a Simplified Trade Regime (STR) agreement that will allow small-scale cross-border traders to import and export goods worth up to $2 000 (about K3.5 million) duty-free. The STR, signed in Lilongwe between Malawi and Tanzania, is expected to ease small-scale cross-border trade and formalise informal commerce between the two neighbouring countries. He said: “For many of our citizens, particularly women and the youth, cross-border trade is an important source of income and employment.

“Through this STR, we are introducing practical measures to streamline documentation, enhance transparency and improve coordination among border agencies in both Malawi and Tanzania.” Trade data show a significant imbalance between the two countries with the United Nations Comtrade indicating that Malawi exported goods worth $57.06 million (about K100 billion) to Tanzania in 2024 against imports at $340.64 million (about K595 billion), creating a negative trade balance of $283.5 million (about K496 billion). Trade between the two countries reflect growing commercial ties, but also untapped potential, particularly in value addition and formalised small-scale trade. “Increasing cross-border trade will stimulate production, expand markets for locally produced goods and strengthen value chains in both Malawi and Tanzania,” he said.

Tanzania Minister for Industry and Trade Salvio Kapinga described the STR as a “policy instrument for small-scale traders” that responds to persistent challenges such as procedural complexity, inconsistent rule interpretation and limited institutional support. “By formalising small-scale trade through simplified procedures, the STR enhances protection, improves predictability and transparency and strengthens compliance without coercion,” she said. Alliance for Green Revolution (Agra) Malawi country director Eluphy Nyirenda said the agreement was particularly significant for agricultural markets and food security.

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She said: “Only last year, we witnessed the impact of border closures on food and horticulture prices in cities within a few weeks. “A slight shift in trade policy can impact production choices, impair food access and result in the loss of incomes or jobs.” Nyirenda said the STR would allow eligible agricultural products such as soya beans, maize and groundnuts to cross the border under simplified procedures, reducing time and costs for small traders.

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