WORLD TRADE
ORGANIZATIONWT/COMTD/IF/37
18 September 1998
(98-3582)
Committee on Trade and Development
Integrated Framework for Trade-RelatedTechnical AssistanceOriginal:  English
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
SUBMITTED BY MALAWI
INTEGRATED RESPONSES BY THE IMF, ITC, UNCTAD, UNDP
WORLD BANK AND WTO
1
MALAWI
                                                     
1 Published in accordance with the provisions of paragraph 5(e) of the Integrated Framework for
Trade –Related Technical Assistance (WT/LDC/HL/1/Rev.1)WT/COMTD/IF/37
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TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
SUBMITTED BY MALAWI
INTRODUCTION
Malawi signed the final Act establishing the World Trade Organisation (WTO) in Marrakesh,
Morocco on 15 April 1994.  In doing so, Malawi, as developing country, assumed commitments
arising from the Uruguay Round.  The obligations and commitments are aimed at furthering trade
liberalisation, imposing more discipline in the Multilateral Trading System and strengthening its legal
framework.
Recognising the position of developing countries signatories to the WTO Agreement adopted
provisions conferring more favourable and deferential treatment for developing countries.  In the
Ministerial Declaration, Ministers affirmed special treatment to be conferred to least developed
countries and confirmed their resolution to strive for better global coherence in the field of trade,
money and finance including cooperation with the Bretton Woods institutions.
It was further recognised that it was important for the least developed countries to implement
the provisions of the Agreement in their favour.  Th erefore, the meeting agreed to keep under regular
review the Uruguay Round results with  a view to fostering positive measures to enable the developing
countries achieve their economic development objectives.
The first WTO Ministerial conference held in Singapore in 1996 drew up a comprehensive
and integrated WTO Plan of Action for the least developed countries aimed at bringing together
national efforts and those of the international commun ity with a view of assisting the least developed
countries in achieving economic growth.  The approach broadly addresses the following issues:
(i) Implementation of decisions on measures in favour of LDCs;
(ii) Human and institutional capacity building;
(iii) Market Access for export products;
In keeping with the WTO Agreements which call for regular reviews of the development
process of least developed countries, the Ministerial conferences agreed that WTO should convene a
High-Level Meeting of LDCs involving UNCTAD, ITC together with multilateral financial
institutions most directly involved in supporting trade related activities of the least developed
countries and the LDCs themselves so as to foster the integrated approach.
To facilitate preparations for the meeting a check least was made available to all list
developed countries so that they could define thei r trade related technical cooperation needs.  In this
regard, Malawi has drawn up her Need Assessment report based on the checklist, as follows.
A. TRADE POLICY
(a) What are the sectors that you believe have unexploited or underexploited export
potential?
The following sectors which are of export potential to Malawi are considered to have been
unexploited or under exploited:
1. Agriculture
- Horticulture - (fruits vegetables, spices such as paprika);
- fish farming;WT/COMTD/IF/37
Page 3
- bee keeping;
- livestock production;
- cut-flowers.
2. Tourism
The tourism industry which has got high potential has not been fully developed.
3. Mining
Minerals such as gemstones, Uranium,  Gold, Coal have not been exploited.
4. Manufacturing/Industrial
Potential industrial sector opportunities exist in:- heavy manufacturing using local resources;
- primary processing and simple manufacturing;  and- light engineering and assembly.
(b) Could you please define your country's pers pective of the reasons for any changes in the
structure and direction of exports and imports?
Malawi's economy mainly depend on the production and export of tea, tobacco, sugar and
coffee.  These exports are constantly been affected by price fluctuations and weather changes.  The
country is landlocked and her imports go through long routes as the short route via Mozambique has
been devastated by the war.
On the import side, Malawi has experienced as inflow of imports due to the current policy of
trade liberalization which she is pursuing.  Most of import restrictions have been removed and the
allocation of foreign exchange loosened.
(c) What have been the objectives of trade po licy in the most recent period, compared to,
say, two decades ago?
Malawi's past trade policy was to regulate trade through control measures such as Import and
export licensing and foreign exchange allocation.
Currently the policy is to:
- support liberal system of private enterprise as the basis of commercial and industrial
activity;
- promote rather than regulate business activity;
- limit parastatal involvement to areas of specific national significance where needs and
opportunities exist and private efforts are inadequate or in appropriate;
- promote growth, efficiency, stability and equity;
- encourage foreign investment actively, while ensuring the participation of Malawians
in trade and industrial activities;
- avoid contraction of manufacturing and commercial activities in a few hands;WT/COMTD/IF/37
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- emphasise support for small-scale enterprise both formal and informal;
- emphasise exports so as to increase domestic employment and the generation of
foreign exchange.
(d) What are the Ministries in charge of trade policy matters, including formulation,
implementation, enforcement and monitoring?  How is coordination made?  What are the
respective roles of the relevant Ministries (give particular attention to tariff policies and other
policies directly affecting exports and imports of goods and services)?
TABLE I
MINISTRY/DEPARTMENT/AGENCY FUNCTIONS IN TRADE RELATED AREAS
- Ministry of Commerce and Industry Formulating trade policy proposals and insuring
their implementation.
- National Economic Council Advise on policy consistency with the overall
development policies, strategies and plans.
- Ministry of Finance Guide on balance of payments ramifications,
budget coordination and related financial
implications on Government expenditure andrevenue.
- Ministry of Agriculture and Irrigation Relate to the country's agricultural production
plans in both diversification and increased
production for export, food security and
provision of materials to local industry.
- Ministry of Justice Advise on the legal aspects of trade agreements,
arrangements and contacts.
- Department of Customs and Excise Advise on customs duties, procedures and
regulations.
- Reserve Bank of Malawi Advise on monetary transactions relating to
imports and exports and to coordinate the
financial institutions involved in the trade.
- Malawi Export Promotion Council Provide information on export opportunities,
advise and training.
- Malawi Chamber of Commerce and
IndustryRepresent the interest of the private sector.
- Exporters Association of Malawi Represent interests of small Malawian exporters.
- National Statistical Office Provide data on trade statistics.
- Malawi Investment Promotion Agency Provid e information on investment opportunities.
- Ministry of Foreign Affairs Formulation of foreign policies.WT/COMTD/IF/37
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Clarification
Prior to finalization and consolidation of the trade-related proposals, extensive consultations
are made with the above listed institutions/organizations.
(e) How are the private sector and academic in stitutions associated with the formulation
and conduct of trade policy?
Malawi private sector in involved in the trade policy formulation through consultations that
Government holds with them.  The academic input comes through the research and curriculum
studies.  Government has also used services of consultants from the University of Malawi in tasks
relating to aspects of trade policy.
(f) What are the institutions in your country th at can play a role in implementation of a
trade-related project at the local level?  State their respective roles.
TABLE II
INSTITUTION ROLES
- Malawi Development Corporation Enters into participation with manufactures and
service industry by providing linkages where the
private sector may have financial limitations.
- Privatisation Commission Aims to foster increased efficiency in the
economy, increase competition and reduce
monopoly.
- Malawi Investment Promotion Agency Investment promotion.
-  Malawi Export Promotion Agency Market information and export promotion.
- Malawi Chamber of Commerce and
IndustryRepresenting the interests of the private sector.
- National Association of Small and
Medium EnterprisesRepresenting the interests of Small and Medium
Scale of entrepreneurs.
- Development of Malawian Entrepreneurs
TrustTraining and advisory services.
- Small Enterprise Development of
MalawiTraining and financing.
- Malawi Entrepreneurs Development
InstituteTraining and advisory services.
- Exporters Association of Malawi Representing the interests of small scale
Malawian exporters.
- Malawi Industrial Research and
Technical Development CentreTechnology development.
- Consumer Association of Malawi Representing the interests of consumers.
- Malawi Bureau of Standards Quality and standards control.WT/COMTD/IF/37
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(g) What are the main laws and regulations de aling with trade policy - on exports and
imports?  Please provide a short description of each.
There are many inter linked laws and regulations dealing with trade policy and affecting
imports, exports and investment.  Some of the laws are as follows:
- The Sale of Goods Act. Cap 48:01 1967:
formation of contract and transfer of property;
- The Control of Goods Act. Cap 18:08, 1967:
control of the distribution, disposal, purchase, and sale, and the wholesale and control
prices of any manufactured or unmanufactured commodity;
- The Malawi Bureau of Standards Act, Cap 51:02, 1972:
promote standardization, specifications, provide scientific testing and marks;
- The Weights and Measures Act, Cap 48:04, 1960:
provide uniformity in weight and measures
- The Metrication Act. 48:08, 1981:
introduce metrication as only used in commerce
- The Finance and Audit Act, Cap 37:01, 1976:
regulate public finances;
- The Business Licensing Act. Cap 46:01:
sale of goods in business;
- The Companies Act. Cap 46:03, 1978:
formation/incorporation of firms;
- The Trustees Incorporation Act. Cap 51:
formation of trusts;
- The Industrial Licensing Act. No. 28, 1989:
licensing certain manufactures;
- The Business Names Reg. Act. Cap 46:2, 1922:
registration of all entities in business;
- The Capital Markets Dev. Act. Cap 46:06, 1989:
registration of operations on capital transactions;
- The Investment Promotion Act. No. 287, 1991:
enabling investment process;
- The Public Enterprises (Privatisation) Act. No. 7, 1996:
privatisation of public services;
- The Banking Act. No. 19, 1989:
regulation of financial services;WT/COMTD/IF/37
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- The Export Promotion Council Act. Cap 39:03, 1971
export activities-facilitation;
- The Export Processing Zones Act. No. 11, 1995:
manufacturing in export zones;
- The Export Incentives Act. Cap 39:04, 1989:
provision of export incentives;
- The Exchange Control Act. Cap 45:01, 1984
Allocation of foreign exchange;
- The Taxation Act 41:01, 1964:
fiscal taxation of earnings;
- The Customs and Excise Act. Cap 41:02, 1964:
collection of duties;
- The Merchandise Act, Cap 49:04, 1958:
marking goods for sale;
- The Registered Designs Act. Cap 49:05, 1958:
registering new designs of articles;
- The Trade Marks Act. Cap 49:01, 1958:
registration of trade marks;
- The Patents Act. Cap 49:02, 1958:
registration of inventions;
- The Trade Dispute Act. Cap 54:02:
arbitration and dispute settlements;
- The Copyright Act:
regulation of original works;
- The Tourism and Hotels Act:
regulation/promotion tourism.
(h) What are the main instruments of trade policy - on exports and imports?  Please
elaborate (e.g. on import restrictions, the questions might be:  on what products are there any
import bans; on what products are there quantitative import restrictions; licensing
requirements, etc.; what is the highest tariff ra te currently in use; are there any excise taxes,
other "domestic" taxes that are applied differenti ally to imported goods, or to goods of a type
that are principally imported?).
Malawi is committed to structural adjustment and economic reform programmes.  This relates
to the liberalization programme as supported by the Bretton Woods institutions and other donors.  The
policy advocates the role of the market forces in the allocation of resources.
Trade Policy Instruments
Malawi does not maintain licensing requirements on Imports/Exports except for a small list of
products relating to health, safety, national security and environmental considerations.WT/COMTD/IF/37
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Malawi does not maintain any quantitative import restriction on products and neither does it
maintain restrictions on current international transactions.  Imports over a certain value
(2000 US $) are subject to pre-shipment inspection.
Goods requiring Import licences from all sources
1. Clothing and uniforms, designed for military naval, air force or policy use.2. Radioactive substances.3. Mist nets for the capture of wild birds.4. Wild animals, wild animal trophies and wild animal products, (including birds and
reptiles) and any egg produced by such birds or reptiles.
5. Live fish including the eggs and spawn thereof.6. Compound products containing flour meal residues and other preparations of kind
suitable only for use as animal foodstuffs and excluding the following:
- chemical additions to animal foodstuffs;
- antibiotic growth stimulants;
- inert fillers;- trace elements;
- synthetic animal foodstuffs;
- bird seed;
- cat and dog foods.
7. Eggs of poultry, whether in shell, pulp or dried forms;  eggs of wild birds
8. Live poultry, including day-old-chicks.9. Meat.The importation of all meats, including dressed poultry, is prohibited without prior permission
in writing from the Minister of Commerce and Industry.  The Minister has however,
exempted the following from import licensing control:
- all tinned meat;
- all potted meat;- meat soaps;
- meat pastes;
- edible meat fats;
-t a l l o w .
All cooked or cured meats other than cooked pork, ham and bacon.
The Importation of all Animals and other Animal Products Require to be Certified as Free
from Disease before Importation.
10. Dieldrin.
11. Aldrin.WT/COMTD/IF/37
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12. Kitchen and table salt.
Goods Requiring Export Licenses
- Implements of war, atomic energy materials of strategic value and items of primary
strategic significance used in the production of arms and ammunition and otherimplements of war;
- petroleum products;- wild animals, wild animal trophies and wild animal products;- maize, including maize meal.As regards tariff structure, the Government plans to lower the existing tariff structure to
achieve an average rate of 15 per cent (subject to revenue needs) with a maximum rate of 35 per cent
for most imports.  This is in line with the Uruguay Round commitments.  These actions are
accompanied by measures to broaden the tax base, including the introduction of a value added tax.The main measures is the consolidation and extension of the surtax to a uniform rate of 20 per cent for
all goods and services.  So far the standard surtax rate has been reduced to 20 per cent, the base rate
for raw materials has been raised from zero to 10 per cent.  There is an excise duty on luxury goods,
applied equally to imports and domestic goods.
The present duties covers eleven (11) rates ranging from zero to 65 per cent grouped as
follows:
- certain cereals, pharmaceuticals, fertilizers and other essential goods 0%
- most raw materials 10%
- semi manufactures 20%
- manufactures 40-45%-  textiles, some processed foods 65%
It is planned that by 1998, the tariff will be reduced to 4 rates, including zero.  The maximum
rate will gradually be reduced to 25 per cent and the weighted average tariff to 15 per cent.
(i) In case you are a WTO Member or are in the process of acceding, how is your country
preparing itself to comply  with the WTO Agreements?
Although Malawi, just like other Least-Developed Countries, initialled the WTO Agreement,
it didn't actively participate in the various activities and meetings of the organization has, hitherto,
been peripheral because mainly of human and financial resource constraints.  In this respect,
familiarity with WTO framework is very limited.  It is therefore necessary for Malawi to request for
technical assistance in matters relating to the implementation of WTO Agreements.
At the moment, the country has formed inter-Ministerial/Agency Committee to work on the
various Agreements.  In order for the work to be fully integrated into the broader economic planning
framework there is need for technical assistance.  The aim, therefore, would be to ensure that trade
policy and economic programmes are mutually reinforcing.WT/COMTD/IF/37
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(j) What is the state of familiarity with the WTO framework:
- among government and government-related agencies?
- in the private sector?
(a) Among Government and Government related agencies :
Very few government officials, particularly those working in the Ministry of
Commerce and Industry are familiar with the WTO framework.  Some have
participated in the WTO Trade Policy course, UNCTAD workshop, etc.
(b) Private sector:
The private sector is aware of the existence of the WTO but have limited familiarity
with its framework.
(k) What are your technical assistance require ments with regard to your compliance with
the WTO Agreements?
It should be appreciated that despite initialling the Marrakesh Agreement establishing the
WTO, Malawi did not actively participate in the negotiations.  To this extent and in the absence of
local advisers, many sections lack the in-depth ap preciation to translate the outcome into policy and
Malawi has no representation in Geneva.  However, three local short seminars have been held inMalawi on the subject.  The following is an attempt at areas requiring technical assistance but may not
be construed as exhaustive:
(i) enhance the competitiveness of Malawi exports in International Markets in the WTO
trading environment;
(ii) study of the implementation of the decision on measures concerning the possible
negative effects of the reform programme on the Least-Developed countries and Net
Food Importing Developing Countries;
(iii) align national legislation to WTO agreements;
(iv) training Government officials dealin g directly with WTO matters and Customs
officials;
(v) examine external financial assistance required to support the Balance of Payments
and for the implementation of specific commitments;
(vi) establishment of a data bank.
(l) In which specific areas of the WTO Agreements do you have technical assistance needs
(e.g. market access, agriculture, rules (anti-dumpin g, subsidies, import licensing, rules of origin,
safeguards etc.), TBT and SPS, Services, TRIPs)?
1. As regards market access, it is necessary to examine the erosion of preferences on the
Generalised System of Preferences (GSP) the Lomé Convention as a result of the
reduction of MFN rates noting that the European Union is a major export market.  Itis also necessary to identify new potential markets for export diversification.WT/COMTD/IF/37
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2. In respect of Agriculture, the issues of subsidies of agricultural inputs especially to
the rural poor should be examined in the context of food security and rural
development.
3. Review of trade remedies legislation such as anti-dumping, subsidies import licensing
safeguards.
4. Deferring the full implementation of the Agreement on Technical Barriers to Trade
would require identifying how to increase the country's capacity in this area.  A
similar purpose exists in the SPS area with regard to strengthening capacity at the
Malawi Bureau of Standards, the University (Research) and the Ministries of Healthand Agriculture.
5. In respect of TRIP's, it is necessary to examine how the Registrar General's office and
Copyright Society of Malawi would enhance their scope on awareness, enforcement
and compliance on the application of areas of interest to Malawi.
6. An examination of investment incentives ob taining in Malawi as they relate to the
provision of TRIM's Agreement.
(m) What is your assessment of your existing trade analysis and negotiating capacities, both
multilateral and bilateral, in areas already co vered by the WTO Agreements and other trade-
related areas, e.g. competition policy and trade and environment?
As indicated earlier Malawi did not participate in  the negotiations leading to the signing of the
Marrakesh Agreement establishing the WTO.
Specific capacities however, exist on matters of VALUATION (Article VII), Import
Licensing Procedures, Rules of Origin and the SPS.  While acknowledging pockets of isolated
negotiating capabilities especially in regional and bilateral areas it is prudent to indicate that Malawi
has not developed effective multilateral negotiating capacities.  The non-representational aspect at
Geneva is further hampered by the absence of "lobbyists" perhaps due to financial limitations of the
country.  The development of negotiating skills is another important area for seeking technicalassistance.
B. OBSTACLES TO TRADE EXPANSION
Obstacles to trade encompassing problems in export markets, infrastructure, human
capacities, institutional bottlenecks, trade financing problems and gaps in trade information can
inhibit a least-developed country from taking full advantage of trading opportunities.
Supply Constraints, Including Institutional Bottlenecks
(a) What are the main bottlenecks inhibiting the development of sustained export capacity
of goods and services (e.g. customs facilitation, freight charges, quality management,elimination of cumbersome legal and administrative procedures, paucity of human skills, access
at international prices to imported inputs, or inadequate telecommunication, port and transport
facilities etc.)?
- Land-locked countries may face addition al problems, such as having to ship
using costly or unreliable transport and ports systems.  In case this applies to
your country, please indicate such problems.  What kind of technical assistance
would help you work out these problems?WT/COMTD/IF/37
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1. Land-lockedness
Malawi is a land-lockedness country and such her imports and exports go through
costly, uncertain and long routes to and from various ports.  This situation has made
Malawi's locally produced goods uncompetitive in the domestic and external markets.
2. Heavy Dependence on Agricultural Production for Export
Tobacco, Tea, Coffee and Sugar account for over 80 per cent of Malawi^'s total
foreign exchange earnings.  Manufactured products account for about 10 per cent of
total export earnings which include processed agro-products.  There is, therefore, a
limit to continued reliance on agricultural exports if the growth of the economy is tobe export-led.  The export situation demands that there be a deliberate policy and
action programme to diversify not only export products but also export markets.
3. Smallness of the Domestic Market
The small size of the domestic market in Malawi coupled with low levels of
purchasing power limits the level and range of production specially manufacturing.
Due to this weak demand, supply potential is limited.  Malawi has to enhance its
value-adding production capacities and increase efforts in export market
development.
4. Inappropriate Technology
Industries in Malawi continue to utilize obsolete technologies.  The use of such
technologies in production, distribution and auxiliary systems has contributed to poorperformance and output.  Since Malawi's trade in Africa involves export products
similar to those from its neighbours, it is important to address the need for
technological capacity development to ensure a competitive edge for Malawi's
products.
5. Limited Trade and Industry Financing
The cost of and access to both working capital and long term loans is a critical
constraint to the growth of Malawi's trade.  The non availability of specialized
financing facility for exports to which exporters could have access worsens the
situation.
6. Inadequate Skilled Manpower
The Management Skills and technical capability of manpower in Malawi is not yet
well developed in many areas of operation.  The deficiencies which are faced in skills
capacity in enterprises arise from the lack of assessment of the needs and capabilitiesof enterprises.  In this respect, there is very little interface between training
institutions and the entrepreneurs.
7. Lack of Adequate Network of Trade Representation Abroad
Malawi has official trade representatives only in two locations worldwide namely,
Zimbabwe and South Africa.  This inadequate representation has crated and adverse
impact on trade promotion abroad.WT/COMTD/IF/37
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8. Limited Knowledge on Export Opportunities
Inadequate knowledge of the export markets abroad has hindered most of the
entrepreneurs to take advantage of the opportunities available.
9. Weak Infrastructure
The weakness in the country's infrastructure include poor transportation services,
breakdowns in communication and utility services such as electricity telephones,
water, sewerage facilities.  The non-availability of serviced industrial parks, industrial
estates, industrial shells and warehousing is also a weakness and so is the lack of cold
storage facilities located at strategic points near International Airport.
10. Weak Human and Institutional Capacity of Support Institution
The weak institutional capacity hinder implementation of Government policies and
programmes.
11. Investment Inadequacy
Government has recently introduced investment incentives to attract domestic and
foreign investment.
Technical Assistance Requirements:
- Strengthening the trade support institutions in terms of capacity building;
- providing information technology to trade support institutions;- providing export financing;
- support in providing infrastructure such as factory shells.
(b) Are there any institutional bottlenecks, wh ich may impede the efficient conduct of your
country's trade policies?  Provide details. For example, what are the problems perceived by thedifferent actors, e.g. exporters, producers, service providers (banks, insurance companies,
quality control, transporters etc), professional associations and Ministries?  Are problems
mainly perceived in the area of:
(i) human resources(ii) management of the institution(iii) financial and material resources(iv) communication
The Government of Malawi has put in place an enabling environment for trade development
and trade related investment through the establishment of various institutions.  The impact of the
institutional set-up is not felt in the economy by almost all sections as at present.  The elements may
be due to the following reasons:WT/COMTD/IF/37
Page 14
(i) human resources
There is an apparent gap in the supply and demand related to managerial and
professional skills, especially in the specialized areas of architects chartered
accountants, engineers medical doctors, lawyers, planners, scientists.
As trade development and investment execution will largely depend on the quality of
the training and skills acquired at management and technical levels, it is obvious that
Malawi needs to orient its curriculum development in the appropriate direction.
The loss of critical and trained manpower is a serious deterrent to economic and trade
development.  Due to the absence of motivation, the country has experienced a spate
of serious brain drain which has largely affected productivity.  This is furtheraggravated by the loss of skilled personnel through eth scourge of diseases especially
the HIV - Aids related death tolls.
(ii) management of the institution
The Institutions involved in investment promotion and trade development are well
managed as they have to be accountable and transparent.  It is the inadequacy of the
supporting managerial and technical skills that poses problems of managing these
institutions and their financial resource limitation.
(iii) financial and material resources
Trade and Investment Promotion Institutions are generally subsidized by
Government.  These resources invalidly fall short of the amount expected for the
achievement of goals and the implementation of programmes.  Donor assistance hasalways been sought to supplement the shortfall.  There has been inadequacy in
material and equipment in such institutions.  In this respect, it may be difficult for the
institutions to contribute towards the execution of some requirements of the WTO
Agreements.
(iv) communication
internal communication is seen to be inadequate for the institutions to reach out to
possible beneficiaries of trade and investment opportunities.  It is important that the
global, regional and internal communication links be synchronised.
(c) What are the main bottlenecks to export diversification?
The following elements may be isolated as impediments to the diversification of Malawi's
exports:
- persistent use of established liens with previous trading and economic partners;- relative scarcity of land as it competes with established export production and food
requirements of the population;
- lack of official commitment on the realisation of the export diversification goals and
absence of public appreciation of export benefits;
- lack of information on alternative opportunities/markets;WT/COMTD/IF/37
Page 15
- uncertainty in capital risk decision-making;
- the land-locked position of Malawi vis-a-vis  access to potential markets;
- inadequate skills and capital related to technological shortfalls;
- absence of the knowledge of existing incentives;
- small internal market in terms of purchasing power;- inadequate and difficult access to financing;- administrative obstacles for investors in new areas;- lack of supporting infrastructure;- lack of modern technology.
These elements are not exhaustive.
(d) If investment in the production of goods a nd services is inadequate, what are the main
reasons?  Please elaborate them (e.g. structural co nstraints, difficulties in attracting foreign
investment, limited enterprise development, financing, lack of appropriate technology, etc)
1. Small and unlucrative domestic market for the investor.
2. Bureaucracy in the facilitation of investor settlement.
3. Absence of skilled manpower.
4. Lack of publicity abroad on investment opportunities.5. Absence of industrial raw materials, especially in the mineral area or of locally
produce/raw materials.
6. Poor infrastructural development7. Communication inefficiency and problems of utilities.8. Problems of obtaining financing locally.9. Complementarity of production patterns in the region and more attractive incentives
in the neighbouring markets.
10. Difficulties in the acquisition of land for investment location.11. Geographically land-locked situation and long distances to import sources and export
markets and consequently the high transport costs of moving freights
12. Inadequate export financing and export incentives.13. Lack of feedback of market information and trade intelligence from export markets
due to absence of a network of commercial representation abroad.WT/COMTD/IF/37
Page 16
14. The technological level of the country does not offer scope for certain industries or
other export production.
15. Inadequate utilities, especially electricity, telecommunication and water supply.
(e) Is there a national policy to encourage export-related investment opportunities?  Please
elaborate.  What arrangements are in place fo r reviewing, drafting and negotiating contractual
arrangements with foreign investors?
The Malawi Government encourages the private sector to play the lead role in the economy-
through the facilitation of private investment.  Specific measures to deregulate the private sector and
increase the investment opportunities have been enacted including the elimination of price controls,
termination of import restrictions and the removal of the need for import licences.  Steps to addressthe external transport situation are on-going, and investor confidence is enhanced by the peaceful
democratise environment.
The Malawi Government enacted the Investment Promotion Act which inter alia  necessitated
the establishment of the Malawi Investment Pr omotion Agency (MIPA).  The Agency provides
investment information.  It also identifies joint venture partners (where required) and makes
introductions to the financial community, and to the providers of professional services and business
services.  MIPA also facilitates, all aspects of the investment process with Government Agencies.
Malawi encourages small-scale and medium-scale enterprises through entrepreneurship
training and technical and financial assistance.
To encourage export-oriented investment, Malawi offers competitive incentives.  These
include:
- export taxes allowances based on export sales of non-traditional products i.e.
(products other than tobacco, tea, sugar and coffee);
- rebates on import duties, surtaxes and taxes on most inputs used in the production of
export products;
- the Government of Malawi has taken a number of positive steps to improve the
investment climate.  Investment application screening was removed, with business
incorporation and registration process combined into a single step, and a number of
investment projects which must obtain an in vestment licence were reduced to a short
negative list.  Additional improvements include the introduction of the Export
Processing Zone regime which is meant to encourage export oriented investments inthe country, the liberalisation of import requirements, the introduction of financial
reforms, the floatation of the Malawi Kwacha and a further liberalisation of the
current account;
- In its continued efforts to create a conducive investment climate, the Government
under the 1997 budget introduced new fiscal incentives aimed at boosting
investments in the country.  The Government has removed the import duty on
imported raw materials in the manufacturing sector to assist Malawian manufactured
products compete well with the imported finished products, it has also introduced a
tax holiday with an option of paying a reduced corporate tax for investors with asubstantial investments, reduced the maximum tariff rate from 40 per cent to
35 per cent and removed corporate tax for firms with an Export Processing Zones
status.  The Government continues to operate  a system of free and open markets, and
will continue to reduce government control over the private sector, simplifyingWT/COMTD/IF/37
Page 17
administrative procedures and improving the climate for direct foreign investment.
The adherence of the Government to transparency and good governance enhance
investor confidence in Malawi as an investment location.
(f) What are the main obstacles to the transfer, development and acquisition of technology?
Is there any national policy/strategy in this area?  Please elaborate.
- Limited financing to acquire new technologies and adapt them to the Malawi
situation;
- lack of trained manpower in the technology development field;
- limited market for the technologies developed;
- paucity of research facilities like laboratories;- inadequacy of national, regional and international linkages;
- high staff turn-over.
The institutions involved in the transfer, development and acquisition of technology are the
Malawi Industrial Research and Technical Development Centre, Appropriate Technology andTraining in Income Generating Activities and Ma lawi Entrepreneurship Development Institute, some
Non-Governmental Organizations are also involved.
(g) What are your technical assistance or oth er assistance needs with respect to supply
constraints.
The following aspects relate to some areas of a federal nature regarding technical assistance
needs arising from the supply constraints noted above:
1. The Institutions involved in transfer, development and acquisition of technology may
require to:
- increase capacity to develop and disseminate applied technology;
- strengthen the technology marketing capacity;
- develop biogas technology;- build appropriate offices, laboratories and workshops as a physical infrastructural
programme with a view to extending to regional centres;
- strengthen liaison with the Malawi Inve stment Promotion Agency (MIPA) and the
Malawi Bureau of Standards (MBS);
- increase industrial research and industrial auditing activities;
- institute a "Fund" for technology development with the private sector in conjunction
with the Malawi Chamber of Commerce and Industry;
- establish an industrial design unit;
- increase awareness of technological development in relevant institutions;
- improve industry energy management;
- develop small-scale irrigation technology;
- improve technology assessment and transfer management;- strengthen energy date survey methods;
- hold conferences, seminars and workshops;
- invest in human resource development;
- establish linkages between technology development centres and property rights and
trade-related aspects of investment measures.
These needs for assistance are not exhaustive as matters of technology are evolving every
time.WT/COMTD/IF/37
Page 18
2. It is necessary that the Ministry of Commerce and Industry, the chamber of
Commerce and Industry and the Malawi Export Promotion Council should establish
trade information and trade documentation centres in all regions.  The ITC and
UNCTAD would assist in this direction.  The Malawi Investment Promotion Agency
should extend its functions to other regions for the facilitation of project
identification.
3. At the regional and district level, there should be links with the centres, possibly
through electronic communication facilities.
4. The Consumer Association of Malawi needs to publish information on prices, quality
and guarantee on local products.  It is necessary to have an international links on
indicative prices of imported raw materials for industry and information on sources.
5. The Malawi Export Promotion Council, the Malawi Chamber of Commerce and
Industry, the Small Enterprise Development/Malawi (SEDOM) Exporters
Association of Malawi and Development of Malawian Entrepreneurs Trust
(DEMAT), among other SME - support organisations, jointly require assistance instrengthening the organisation of export groups or cooperatives.
6. Assistance is required in the formulation of a comprehensive export diversification
scheme taking due account of the trade opportunities arising from the Uruguay
Round.  This should encompass identification of new markets.
7. There is need for awareness on the impact of intellectual property rights within
Government and to the general public.  The Offices of the Registrar General and
Copy Right Society of Malawi should be financed to hold seminars with the
assistance of the World Intellectual Property Organization.
8. The Malawi Bureau of Standards requires technical and financial assistance in the
establishment of an Enquiry Point. The required assistance will, among other areas
cover requirements relative to the WTO Agreements on Sanitary and Phytosanitary
measures (SPS) and on Technical Barriers to Trade (TBT's).
9. The Malawi Investment Promotion Agency (MIPA) requires an in-depth training on
the impact of the Trade Related Investment Measures of the Uruguay, especially in
relation to restrictive business practices, the proposed competition policy technology
transfer requirements and local equity requirements.
10 The Malawi Investment Promotion Agency , Ministry of Commerce and Industry and
the Chamber of Commerce and Industry require training alongside the local textile
private businesses in appreciating the operation of the new rules applicable to the
trade in textiles.
11. The Ministry of Agriculture and Livestock Development, the Ministry of Commerce
an industry and the Malawi Export Promotion Council require orientation to
appreciate the improvements in market access to the trade in agricultural products and
how Malawi can sustain its preferential margins on its current export products.  The
possible impact of the implementation of the Uruguay Round on some products and
of the potential demand in liberalized markets is vital so that exporters can takeadvantage of new opportunities and meet conditions of competition.WT/COMTD/IF/37
Page 19
12. A study in new export opportunities under the General Agreement on Trade in
Services would assist policy formulation especially in the expansion of South-South
trade in services.
13. Under the general trade and industry policy review, the involved Government
officials and the private sector should get sectoral exposure on the elements of theUruguay Round as they relate to their activities.
The said technical needs are subject to review and may vary timely.Trade Promotion and Trade Support Services
Trade promotion comprises an integrated set of technical and financial services to enhance the
global competitiveness of enterprises and thus facilitate their entry and increasing participation in
international trade.
(h) Do your enterprises, especially small and medium enterprises, experience difficulties in
expanding their exports?  What are these problems in the major export sectors?
Due to various economic factors, notably unemployment levels, unemployment levels,
Government has an interest in the development of small and medium enterprises (SME's) in all sectors
of the economy.  As a policy tenet, the Government created the Small Enterprise Development
Organisation (SEDOM), the Development of Mala wian Entrepreneurs Trust (DEMAT), the Malawi
Entrepreneurs Development Institute (MEDI), a sect or with associates like National Association of
Small and Medium Entrepreneurs (NASME) among others to address the issue of entry into business
undertakings by the informal sector.  Nevertheless, these actions have faced a lot of problems in
establishing themselves, notably in the export trade due to a variety of reasons.  Some of the
commonly cited ones being as follows:
- they do not have access to adequate capital financing to organise their businesses and
go into lucrative export trade;
- generally and as they have limited access to trade information, most of they have
limited access to trade information, most of their export efforts have been frustrated;
- the organisation of export groups is not well coordinated.  Exporters prefer to act in
their individual interests as corporate mentality remains rudimental;
- there is lack of knowledge of export procedures for many small enterprises;
- there is limited scope for appreciating the intricacies of export marketing as skills are
generally lacking;
- there is inadequate or poor business management competence;
- there are inadequate export outreach programmes due to centralised services by the
export support institutions.
- there is limited application of new technology by the SME's as there are no facilities
for developing new products or for experimenting with new production techniques;
- very constrained management spectrum as many of them act individually;- low propensity to undergo training;WT/COMTD/IF/37
Page 20
- inability to produce en masse.
The inability of small scale support institutions to give technical and financial assistance to
SME sector.
(i) What are the problems for your enterprises in obtaining reliable and up-to-date
information on export/import business opportunities?
- Centralized location of the export promotion organizations;
- No public awareness on where and how to obtain trade information oas the national trade
promotion and trade supporting services are not well published due to resource constraints.
(j) Can your enterprises offer products of internationally acceptable design, quality and
packaging to foreign buyers?  If not, what are the problems?
As regards design, quality and packaging for exports most of the manufacturers are able to
meet internationally accepted international standards.  The Malawi Bureau of Standards and the
Malawi Export Promotion Council offer training in areas of standardisation and quality control.
However, much is needed to be done to increase the quality of the local products.
(k) What problems, other than in terms of trade policy, do you anticipate in developing the
export of services (e.g. computer software, tourism)?
The problem in Computer Software include lack of computers both hardware and software
and lack of computer knowledge.
The problem with tourism is the marketing strategy, limited facilities like hotels and
insecurity to tourists.
(l) What are the technical/professional problems encountered by trade support institutions
(e.g. trade promotion council, chamber of commerce, exporters association, etc) in your countryin providing their services to export/import enterprises?
The trade support institutions do face serious limitations of resources to effectively carry out
their work programmes.
- The Malawi Export Promotion Council is subvented organisation while the Chamber
of Commerce and Industry like the Export ers' Association depend on membership
contributions;
- the limitations of qualified human resources to service the sector is a serious problem;- furthermore, the absence of equipment hampers areas like data-base creation,
mobility, networking and do deter the realisation of set - goals.
(m) What problems and deficiencies are experi enced by enterprises in  their international
purchasing and inventory management?
- Due to the land-locked situation, goods ordered experience considerable delays;
- Government procurement, especially for national projects keeps business away form
the private sector enterprises;WT/COMTD/IF/37
Page 21
- movement of goods affects quality upon landing;
- there is the risk of pilferage at ports;- since sources of supply are far there is no effective machinery for dispute settlements
in case of breach of contract;
- apart from deciding where to buy, there is the aspect of which particular supplier(s) to
buy from in terms of reliability and competitivity;
- lack of adequate technical back-up on machinery bought;
- delayed delivery causes rescheduling of activities;
- there are problems of planning how much one has to buy in order to reduce the cost
of holding goods and raw materials as against the available finances;
- there are problems in determining lead times relative to transit and transhipment;
- difficulties of warehousing, storage and stock control and distribution of imported
products;
- there is inadequate ability to negotiate contracts and to administer them.
(n) What are the present availability and arrangements for trade finance facilities
(e.g. export credit guarantees, etc)?  Are the re any perceived deficiencies in this area?
The most notable instrument of export financin g is that offered by the PTA Bank.  There are
lines of credit from the World Bank and other donors which are for on lending to the SME sector.
The Malawi Leasing and Finance Company offers a range of financial instruments for both exports
and imports.  The Investment Development Band addresses productive credit areas.  The commercial
banks offer export credit also.  However, in most circumstances, the SME operators may not be ableto meet the conditions of accessing such financing.  Attempts to introduce arrangements for pre - and
post- shipment financing an export credit guarantee and venture - capital have not been materialised.
(o) What are the main problems in the way of  improving export/import management skills
of your business enterprises?  Do you have trai ning programmes in the country?  What are the
deficiencies?
The trade support institutions do run specific training events for business managers.  In this
respect, the Malawi Export Promotion Council concentrates on aspects related to export development.
The import management and techniques area was with the Ministry of Commerce and Industry under
the assistance of the ITC.  This project has since been discontinued due to financial limitations.  The
Malawi institute of Management also holds cour ses for management in various areas and includes
aspects on business skills.  The Malawi Entrepreneurs Development Institute offers practical business
locations. The Polytechnic of the University of Malawi offers business courses on both full and part-
time bases.
The deficiencies indicate that no assessment has been done of needs and capacities of
enterprises.  There is no systematic programme for the training of trainers to strengthen the training
capacity of local institutions.  It would appear that training institutions do not interact adequately with
the business communities.  There is no systematic evaluation of the impact of SME training
programmes.  Therefore there are no set priorities accorded to different training needs.WT/COMTD/IF/37
Page 22
(p) Does your trade representation service actively promote your trade?  What are the
weaknesses?
Malawi has trade representation in South Africa (Johannesburg) and in Zimbabwe (Harare).
These two have not had the desired impact due to various reasons including operational
budget constraints.
(q) Briefly describe your technical assistance needs in the area of trade promotion and
support services.
1. There is need for orienting commercial representatives.
2. Attachments of commercial representatives to selected and targeted countries.3. An evaluation of main organisations dealing with trade promotion and those charged
with providing export services.
4. The establishment of trade information cell offices in the main industrial and trading
centres.
5. Examine the design, quality and packaging practices especially in selected products
of export products of export potential.
6. It is imperative to hold seminars for officials handling policy on trade in services.7. A hand book on international procurement procedures and a guide on import
techniques.
8. A guide on Inventory Management Practices.9. Formulation of appropriate export financing schemes.10 Educational study tours for selected entrepreneurs with export potentiality.11. Need to strengthen SME management capabilities in export marketing.12. Assistance in resources/or export expansion.
Market Access
(r) What are your main market access problems?
Malawi has not fully utilised international market opportunities due to market access
problems.  These market access problems include tariff and non tariff barriers.  The following being
the major ones:
(i) High Tariff Rates
Tariff rates have in some instances been too high for Malawi products to be
competitive.  This situation is common with countries where there are no multilateral
or bilateral trade arrangements.WT/COMTD/IF/37
Page 23
(ii) High Quality Standards
Most importing countries particularly in the overseas demand quality standards which
are not easily attainable by Malawi exporters due to inadequate technical skills and
inappropriate technology.
(iii) Sanitary and Phyto-sanitary Requirements
Sanitary and phyto-sanitary requirements on agricultural export products tend to limit
Malawi's access to international markets.  The requirements stipulated by the
importer have in some cases not been attainable due to the present agricultural
production environment.
(iv) Poor Access to Market Information
Exporters are not easily accessible to market information due to poor information
infrastructure.  Such means of access to market information as internet are fairly newin Malawi.
(v) Inadequate Promotional Programmes
Malawi has not been able to carry out adequate market development programmes due
to inadequate funding.  Access to such markets has therefore been difficult.
Land-lockedness of the country - Malawi being a landlocked country incurs high
transport costs which result into uncompetitive pricing of her exports.
(s) What specific problems or barriers, and in which countries, are most troublesome for
your exporters?
There is no study yet done to tabulate in a systematically predictable manner of the specific
problems or barriers in specified countries.
(t) Regional and sub-regional trading arrangements (RTAs): please list RTAs to which
your country belongs.  Are you satisfied with th e performance with these RTAs?  Please state
the problems of each.  Do you have suggestions on how to solve these?
Malawi is a signatory to the Treaty for the Establishment of the Common Market for Eastern
and Southern African States (COMESA) and a member of the Southern African Development
Community (SADC).
There are infrastructural weaknesses among the members of the RTA's and sectoral
inefficiencies which do not auger well for the growth of competitive export industries.  The solution is
that there should be close coordination of trade policy objectives pegged at realistic economic reformprogrammes.
(u) Are there any problems in utilizing the exis ting market access preferences, such as GSP,
GSTP?  Please state the nature of problems relating to each of these.
The utilization of the GSP and the GSTP faces some problem like:
- the complex rules and documentation involved;
- lack of knowledge by exporters;WT/COMTD/IF/37
Page 24
- demand for the products listed;
- inability of beneficiaries to produce;
- the erosion of benefits of preferences;
- incomplete product coverage;
- different rules of origin;
- duration of schemes may not allow investment.
(v) What are your technical assistance needs with respect to market access?
- Identification of trends in the international demand for products of export interest to
Malawi;
- Calculate investment risk in given products;
- identify the extent of external market penetration to be achieved in selected markets
and products;
- assess potential of regional market and propose ways of enhancing competitively and
exports;
- suggest modalities for reducing per unit transport costs;
- review product development for specific export market opportunities;- strengthen market information at the disseminating point (focal point) like the Malawi
Export Promotion Council (MEPC);
- improve MEPC staffing qualitatively and quantitatively through training
programmes;
- evaluate impact of GSP and GSTP schemes.
C. TECHNICAL ASSISTANCE
Technical assistance is normally provided to developing and least-developed countries to
build or enhance their human resources and institutional capacities, provide trade information andtrade-related legal support, as well as improve their supply capabilities in order to make them more
active players in the field of multilateral trade.
(a) To the extent this kind of information is easily available, could you please briefly
describe what trade-related assistance you have received over the past five years from bilateraland multilateral sources and what projects/programmes are presently under consideration in
this area?
See attached Table III.
(b) Please summarize your technical assistance needs as well as other needs as reflected in
this check-list.  Please rank them in terms of priority.
Malawi like other developing and least-developed countries requires considerable amount of
technical assistance in order to respond to the policy ramifications and implications of the Uruguay
Round Agreements and in order to increase its partic ipation in international trade.  In order of the
need to coordinate the programmes of technical assistance the Ministry of Commerce and Industry isthe focal point.  As the multilateral trade process is evolving, it is of necessity that the activities in
Geneva be closely monitored during this post Uruguay period.
In setting out the priorities for technical assi stance needs one must take into account the
limitations of some structural elements like macro-economic imbalances, lack of human and physicalcapital, poor infrastructure, inadequate regulatory regimes, poor institutional management and the
strength of the public administration.  Therefore, the priorities set may be considered as guidelines
since sectoral development issues are, to a large extent, complimentary.WT/COMTD/IF/37
Page 25
The technical assistance should seek to support the balance of payment and the
implementation of specific commitments in accordan ce with a timetable to be established in the
following manner:
1. Agriculture
- To examine the Malawi agricultural policy in terms of rural development, promotion,
investment subsidies, and input subsidies and diversification in terms of the
Agreement as it relates to domestic support measures of poor developing nations in
the context of Bretton Woods Institutions;
- determine the support for adjustment problems arising from reforms that improve
agricultural productivity and supply in terms of least-developed and netfood-importing from Malawi;
- calculate welfare gains and losses for Malawi's current and potential exports;- determine immediate technical and financial needs for the improvement of
agricultural productivity and infrastructure;
- study the competitiveness of agricultural exports of interest to Malawi in the post
Uruguay Round in order to endure that there are no losses in export earnings;
- study the implementation of the Decision on measures Concerning the Possible
Negative Effects of the Reform Programme on the Least-Developed Countries and
Net-Food-Importing Countries as it relates to Malawi.
2. Market Access
- Identify export market tariff positions of products of export interest to Malawi;- identify new potential markets post Uruguay Round;
- examine the "erosion" of preferences on the Generalised System of Preference (GSP),
the GSTP and the Lome Convention as a result of the reduction of the MFN rates.
3. Human Resources
Malawi will need considerable financial and technical assistance to improve human
resources and institutional capacity to administer the most specialized aspects of theUruguay Round obligations.  In this respect, it is important to isolate the sectors as
provided in the check-list and to formulate sectoral requirements.
4. Trade in Services
Technical and financial assistance to support the development of the key services
sectors (the training of personnel is a priority requirement in most sectors).  There is
need to raise public awareness on the implications of the acceptance of the GATS and
the strengthening of analytical and policy-making capacity in both the public and
private sectors.WT/COMTD/IF/37
Page 26
5. Textiles and Clothing
To study the impact of the Agreement in respect of the Malawi industry on textiles
and clothing.
6. Supply Improvement
- Need to review Government regulations, legislation and policies;- Assist smaller firms in assessing their own International Competitiveness.7. Information Technology
Strengthen the Trade Information Services in the institutions dealing with trade-
related activities
(c) In the light of the information you have been able to provide so far in response to the
questions in this check-list, what types of information are, in your view, still missing or could beimproved upon?  In order to assist you in providing this missing information, would you need
technical assistance?
In regard to the check-list, it is true that the information provided may not be exhaustive.  It is
therefore imperative to mount a comprehensive country-wide consultation so as to fill in the missinggaps.  This would require technical assistance.
(d) Does your country have the technological capacity and human resources to make use of
the new information/ communication technology t ools such as CD-Rom, the Internet etc.?  What
assistance would you need to enable your country to use these tools in the context of training
and, more generally, in the context of trade development?
Computer technology is available in Malawi and some institutions can use tools such as
CD-ROM, Internet, etc.  In the context of trai ning, the Malawi Export Promotion Council would
require exposure to the new information technologies.  This should extend to the Chamber ofCommerce and Industry.  The Ministry of Commerce and Industry who are the focal point for the
administration and monitoring of the Uruguay Round aspects and for policy on trade development
would require strengthening and capacity building in the use of new technologies.WT/COMTD/IF/37
Page 27Table III
AGENCY PROJECT NAME DATE  DESCRIPTION
ITC Uruguay Round Follow-up
ProgrammeJune 1996 -
October 1996Malawi Export Promotion Council (MEPC).  Held Workshop "Product and packaging implications of
TBT/SPS" and "Business Guide" seminar to review the practical consequences of the Uruguay Roundagreements from a business perspective and present and discuss specific aspects of the new world tradingsystem.
Specific training materials were developed for the event.
ITC Advisory Services on
Quality Management forExportOctober 1997 -
December 1998Planned advisory and training missions to Government and business bodies on the quality aspects of export
development.
ITC Special programme for safe
and environmentally
acceptable export packaging1996 - 1997 Assist exporters to adapt to regulatory initiatives affecting packaging in target markets.  Assisted pilot eco-
packaging activities by participation in environment committee meetings and training events and prepared
eco-packaging documents.
UNCTAD Economic Development and
regional Dynamic in Africa:
Lessons from the East AsianExperienceOngoing in 1997 The project aims at identifying (1) development strategies to promote particularly resource-based and
labour-intensive manufacturing production and exports in Africa and (2) strategies to stimulate regional
growth dynamics based on South-South co-operation through coordinated policies and closer trade andinvestment relations. The project focuses on southern Africa and covers all LDCs members of SADC. Casestudy undertaken in Malawi.
UNCTAD International Investment
ArrangementsOngoing in 1997 The Project aims at familiarizing African Government officials, through Symposium and seminars, with
existing investment arrangements, especially as regards the lessons that can be drawn from a developmentperspective, and contribute to a better understanding and consensus-building in this area.  Malawiparticipated in the Regional Symposium held in Fes, Morocco (19-20 June 1997) the development
Dimension of International Investment Arrangements
UNCTAD Asia-Africa Technical and
Economic Cooperation inCommodity Trade and
InvestmentOngoing in 1997 The project aims at promoting trade and invest ment between Asia and Africa.  Malawi participated in a
Study Tour in Jakarta (Nov -Dec 1996)
UNCTAD Competition Law and Policy Ongoing in 1997  This project aims at assisting Malawi and other developing countries in reviewi ng and formulating
competition policies and legislations, at contributing to the building of national institutional capacity in this
area and at providing Government officials and private entrepreneurs with a better understanding of
competition laws and policies.WT/COMTD/IF/37
Page 28AGENCY PROJECT NAME DATE  DESCRIPTION
UNCTAD  Impact of the Uruguay
RoundOngoing in 1997 The project aims, through preparation of a country study, at assessing the impact of the Uruguay Round on
Malawi in order to determine appropriate policy responses for adjusting to the post Uruguay Roundenvironment
UNDP
(UNOPS)African Trade Promotion
Corporation1997 This programme aims to establish the African Trade Promotion Corporation. It will enhance the national
private sector capacities to export African product products  and services to the United States and to attract
Foreign Direct Investment to the African Continent.
UNDP
(UNOPS)UNDP/RBA Private Sector
Guide Creating the Action
Agenda and Establishing theAfrican Business ExecutivesProgramme1997-1999 This programme will establish the African Business Executives Programmes (ABEX) under the auspices of
the African Business Round table (ABR) and the West African Enterprise Network (WAEN) which will
provide advisory and training services on private sector development programme on an ad hoc and shortterm basis
UNDP
(UNOPS)Private Sector Collaboration
in Southern Africa1997-1999 The main purpose of this initiative is to launch a complementary bridging mechanism under the aegis of
UNDP, the private sector and the government of South Africa, to link the impressive reservoir ofinstitutions and talents in South Afri ca to support private sector developm ent in the region.  The preparatory
assistance project will 1) develop with South African pa rtners the institutional arrangement of the initiative
2) present and connect countries of the region to the initiative and 3) mobilise resources from donors,
governments and the private sector to launch and establish the initiative.
WTO
(WIPO)Regional Symposium on the
economic importance ofIntellectual Property and on
enforcement of rights under
the TRIPS Agreement05-07/03/1997 In this symposium, organized by WIPO in Tanzania, participated several African English-speaking
countries.
WTO
(WCO)WCO African Regional
Seminar on the Harmonized
System28/04-
02/05/1997This Seminar took place in Ghana.
WTO Regional Seminar on GATS
Negotiations in progress for
English-speaking Africancountries08-09/09/1997 The Seminar took place in South Africa.WT/COMTD/IF/37
Page 29AGENCY PROJECT NAME DATE  DESCRIPTION
ITC,
UNCTAD,UNDP
(UNOPS/WIPO)Capacity Building for Trade
and Development1997-2000 The regional programme intends : 1) to strengthen human resources in Government, the private sector and
NGOs knowledgeable in the rules of doing business in regional and global markets; (2) to strengthen the
capacity of African governments to formulate strong trade policies in cooperation with the private sector
and civil society; and (3) to strengthen enabling institutions designed to support African entrepreneurs and
enterprises in their effort to penetrate foreign markets.
ITC,UNDPCOMESA Trade
Development and Promotion
Programme1995-1997 Malawi Export Promotion Council and Malawi Chamber of Commerce and Industry participate in
COMESA Trade Information Network (TINET).  Par ticipation in COMESA buyers-sellers meetings on
clothing and textiles, wood products, cleansing products, iron and steel of selected enterprises.  Held a
Workshop on "Doing business in COMESA".  Product and market development assistance activities forfishing nets.
ITC,UNDP
(UNIDO)Development of Industrial,
Trade and Export Strategy1996 Malawi Export Promotion Council and Ministry of Trade and Industry.  To formulate an industrial, trade an
export strategy for Malawi.  Preparation of trade and export strategy on the basis of studies undertaken by amulti-disciplinary team.  Held national symposium on th e proposed strategy to obtain inputs from a wide
range of trade development partners.WT/COMTD/IF/37
Page 30
INTEGRATED RESPONSES BY THE IMF, ITC, UNCTAD, UNDP
WORLD BANK AND WTO
MALAWI
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(k):
Technical assistance requirements as
regards compliance with WTO Agreements1
1. Enhance the competitiveness of Malawi
exports in international markets in the WTOtrading environment.UNCTAD A mission should be envisaged to prepare a
technical assistance programme that couldbe proposed to potential donors.  The main
theme would be export diversification,
including the development of a
comprehensive export diversification
programme for Malawi (diversificationpolicies; measures to strengthen
competitiveness and supply capacities
including trading investments; market
access, potential new export products and
markets under GSP, Lomé and SADC;service sector development; etc.)
                                                     
1 The needs assessment indicated that the list of technical assistance requirements with respect to
compliance with the WTO agreements is not exhaustive.WT/COMTD/IF/37
Page 31
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(k) (cont'd):
World Bank These issues are being pursued in the
context of the adjustment program currentlyunder preparation (Fiscal Restructuring and
Deregulation Program II) and through
dialogue with Reserve Bank, Ministry of
Finance and Customs and Excise
Department officials, concerning tradepolicy, exchange rate competitiveness, and
tariff levels.
This assistance could also help removing
existing tax anomalies, including negativeprotection, that hurt the private sector by
imposing higher taxes on inputs than on
final goods.  It is expected that tariffs on raw
materials, capital goods and intermediates
will be reduced from 10% to 5%.  This will
enhance Malawi’s export competitiveness.
2. A study of the implementation of the
Decision on Measures Concerning the
Possible Negative Effects of the Reform
Programme on Least-Developed Countries
and Net Food-Importing Developing
Countries.
3. Align national legislation to WTO
agreements.WTO Assistance in implementation of WTO
Agreements will provided to Malawi.
4. Training Government officials dealingdirectly with WTO matters and training
customs officials.WTO -A national seminar will be held at the end
of June 1998.
-An official from Malawi attended this
year's three-week trade policy seminar.
Another course will be held in 1999 towhich officials from Malawi will be invited.
-Participants from Malawi will also be
invited to regional seminars for English-
speaking least developed countries.
UNDP/
UNCTAD/(WIPO )Under the regional programme RAF/96/001
a regional workshop will be organized in theregion to train government officials and
private sector representatives and NGOs in
policy and rule-making under the WTO.WT/COMTD/IF/37
Page 32
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(k) (cont'd):
5.  Examine external financial assistance
required to support the balance of paymentsand for the implementation of specific
commitments.IMF/
World BankBoth the International Monetary Fund and
the World Bank will continue to assess theexternal financial requirements and other
problems linked to balance of payments as
part of their regular macro-economic
country reviews.
The world Bank financial assistance hasbeen channelled through successive
adjustment programs and will continue
through a new Fiscal Restructuring and
Deregulation Program.
6.  Establishment of a data bank. World Bank In establishing a data bank the government
can benefit from the work carried out by the
World Bank to assist the Malawi National
Statistics Office (NSO) to upgrade and
rebase the system of national accounts.  Thegovernment may also utilize the skills
developed by a seminar in Malawi to inform
government officials and the public about
the improvements in the system of national
accounts.
IMF/UNDPFor fiscal year 1999 a long-term advisor in
national accounts is planned (to be financedby UNDP) which would include trade
statistics.WT/COMTD/IF/37
Page 33
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(l):
Technical assistance needs as regards
specific WTO Agreements
1.  As regards market access, it is necessary
to examine the erosion of preferences on the
Generalised System of Preferences (GSP)
and the Lomé Convention as a result of the
reduction of MFN rates, noting that the
European Union is a major export market.
It is also necessary to identify new potentialmarkets for export diversification.ITC See following ITC entries under B(g) and
B(q).
UNCTAD An advisory mission is planned in 1998 on
export possibilities within the Lomé
Convention and sub-regional preference
schemes.
2.  In respect of agriculture, the issues of
subsidies of agricultural inputs especially tothe rural poor should be examined in thecontext of food security and rural
development.UNCTAD See A(k)1.
World Bank The issue of subsidized agricultural inputs in
needy areas is being examined by the World
Bank’s agricultural staff.
WTO See A(k).
3.  Review of trade remedies legislationsuch as anti-dumping, subsidies, import
licensing and safeguards.WTO See A(k).
4.  Deferring the full implementation of the
Agreement on Technical Barriers to Trade
would require identifying how to increasethe country's capacity in this area.  A similar
purpose exists in the SPS area with regard to
strengthening capacity at the MalawiBureau of Standards, the University
(research) and the Ministries of Health andAgriculture.WTO See A(k).WT/COMTD/IF/37
Page 34
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(l) (cont'd):
5.  In respect of TRIPS, it is necessary to
examine how the Registrar General's Office
and the Copyright Society of Malawi would
enhance their scope of awareness,
enforcement and compliance on the
application of areas of interest to Malawi.WTO Assistance will be provided for the
implementation as appropriate in theframework of the Agreement WIPO and
WTO on Cooperation.
6.  An examination of investment incentivesin Malawi as they relate to the provisions of
the TRIMs Agreement.WTO See A(k).WT/COMTD/IF/37
Page 35
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(m):
Assessment of the existing trade analysis
and negotiating capacities
As earlier indicated in Malawi's needs
assessment, Malawi did not participate in
the negotiations leading to the signing of theMarrakesh Agreement establishing the
WTO.  Specific capacities however, exist on
matters of Evaluation (Article VII), Import
Licensing Procedures, Rules of Origin and
the SPS Agreement.  While acknowledgingpockets of isolated negotiating capabilities
especially in regional and bilateral areas it is
prudent to indicate that Malawi has not
developed effective multilateral negotiating
capacities.  The non-representational aspectat Geneva is further hampered by the
absence of "lobbyists" perhaps due to the
financial limitations of the country.  The
development of negotiating skills is another
important area for seeking technical
assistance.UNCTAD Assistance in developing negotiating skills
could be arranged within the context of
regional training seminars etc.
UNDP/
(African
Economic
Research
Consortium,or AERC )Based on a synthesis of sectoral studies,
UNDP in 1998 and 1999 will organize, in
cooperation with UNCTAD, sub-regional
seminars and brainstorming workshops to
assist government officials in preparingnegotiating positions for future WTO
negotiations.
WTO Short trade policy courses for
Least Developed countries contain a module
for enhancing multilateral negotiating skills.WT/COMTD/IF/37
Page 36
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(m) (cont'd):
ITC/
UNCTAD/UNDPIn the period 1997-2000 Malawi will benefit
from the Capacity Building Programme forTrade and Development in Africa
(RAF/96/001) aimed at strengthening
through specific training activities and
technical advisory services the capacity of
Institutions in charge of formulating tradepolicies and studies and to enhance the
government capacity for programme policy
analysis, trade negotiations and formulation.
This will include a workshop in international
commercial diplomacy for trainers inEnglish-speaking countries in 1998.WT/COMTD/IF/37
Page 37
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(g):
Technical assistance needs as regards
supply constraints
1.  The Institutions involved in transfer,
development and acquisition of technology
may require to:
- Increase capacity to develop and
disseminate applied technology
- Strengthen the technology marketing
capacity
-  Develop biogas technology
- Build appropriate offices, laboratories and
workshops as a physical infrastructuralprogramme with a view to extending to
regional centres
- Strengthen liaison with the Malawi
Investment Promotion Agency (MIPA) and
the Malawi Bureau of Standards (MBS)
- Increase industrial research and industrialauditing activities
- Institute a "Fund" for technologydevelopment with the private sector in
conjunction with the Malawi Chamber of
Commerce and Industry
-  Establish an industrial design unit
- Increase awareness of technological
development in relevant institutions
-Improve industry energy management
-  Develop small-scale irrigation technology
- Improve technology assessment and
transfer managementWT/COMTD/IF/37
Page 38
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(g) (cont'd):
-  Strengthen energy data survey methods
-  Hold conferences, seminars and
workshops
-  Invest in human resource development ITC See A(m).  In addition Malawi may be
included in 1999 among those countries
benefiting from the Global Competitiveness
and Trade Tutor Building Programme, in the
field of Human Resource Development fortrade expansion.
*
-  Establish linkages between technologydevelopment centres and property rights andtrade-related aspects of investment measures
2.  It is necessary that the Ministry ofCommerce and Industry, the Chamber of
Commerce and Industry and the Malawi
Export Promotion Council should establishtrade information and trade documentation
centres in all regions.  The ITC and
UNCTAD would assist in this direction.
The Malawi Investment Promotion Agency
should extend its functions to other regions
for the facilitation of project identification.UNCTAD/
ITCThe Malawi Export Promotion Council and
the Malawi Chamber of Commerce and
Industry participate in the COMESA Trade
Information Network (TINET).  Informationon current world market prices and trends of
horticultural produces will be provided
under the ITC Market News Service.
The Trade Point Programme via the Global
Trade Point (GTP)-Network is establishing
trade-information data bases and provides
training in electronic interconnectivity.  Afeasibility study on Malawi's participation in
the GTP-net will be conducted.
*
TRAINS CD-Rom will continue to beprovided.
3.  At the regional and district level, there
should be links with the centres, possibly
through electronic communication facilities.
                                                     
*Funds are requested.WT/COMTD/IF/37
Page 39
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(g) (cont'd):
4.  The Consumer Association of Malawi
needs to publish information on prices,quality and guarantee on local products.  It
is necessary to have an international link to
indicative prices of imported raw materials
for industry and information on sources.
5.  The Malawi Export Promotion Council,the Malawi Chamber of Commerce and
Industry, the Small Enterprise
Development/Malawi (SEDOM) Exporters
Association of Malawi and Development ofMalawian Entrepreneurs Trust (DEMAT),
among other SME - support organisations,
jointly require assistance in strengthening
the organisation of export groups or
cooperatives.
6.  Assistance is required in the formulationof a comprehensive export diversificationscheme taking due account of the trade
opportunities arising from the Uruguay
Round.  This should encompass
identification of new markets.ITC ITC will hold consultations with the
Government on the possibility ofundertaking any further work for an existing
trade and export development strategy and
its implementation.
*
UNCTAD See A(k)1.
7.  There is need for awareness on theimpact of intellectual property rights within
Government and to the general public.  The
Offices of the Registrar General and CopyRight Society of Malawi should be financed
to hold seminars with the assistance of the
World Intellectual Property Organization.WTO See A(l).
                                                     
*Funds are requested.WT/COMTD/IF/37
Page 40
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(g) (cont'd):
8.  The Malawi Bureau of Standards
requires technical and financial assistance inthe establishment of an Enquiry Point.  The
required assistance will, among other areas
cover requirements relative to the WTO
Agreements on Sanitary and Phytosanitary
measures (SPS) and on Technical Barriersto Trade (TBT).WTO See  A(l).
9.  The Malawi Investment Promotion
Agency (MIPA) requires in-depth training
on the impact of the rules on Trade-RelatedInvestment Measures of the Uruguay
Round, especially in relation to restrictive
business practices,  the proposed
competition policy technology transfer
requirements and local equity requirements.WTO See A(l).
10.  The Malawi Investment Promotion
Agency, Ministry of Commerce andIndustry and the Chamber of Commerce and
Industry require training alongside the local
textile private businesses in appreciating the
operation of the new rules applicable to the
trade in textiles.
11.  The Ministry of Agriculture andLivestock Development, the Ministry ofCommerce and Industry and the Malawi
Export Promotion council require
orientation to appreciate the improvements
in market access to the trade in agricultural
products and how Malawi can sustain itspreferential margins on its current export
products.  The possible impact of the
implementation of the Uruguay Round
Agreements on some products and of the
potential demand in liberalized markets is
vital so that exporters can take advantage of
new opportunities and meet conditions ofcompetition.ITC ITC will assist in the period 1998-1999
under the ongoing project “Survey of theMarket Potential for Organic Products from
Developing Countries”concerned
Institutions and the business sector to
improve the export performance of
agro-based products.  Planned activitiesinclude:  market research on organic
products, with emphasis on food and
beverages, with a view to identifying
product groups that offer market potential
for commercial production.  Findings and
recommendations will be presented and
discussed in selected disseminationseminars/workshops.WT/COMTD/IF/37
Page 41
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(g) (cont'd):
UNCTAD See A(k)1.
12.  A study of the new export opportunities
under the General Agreement on Trade in
Services would assist policy formulation
especially in the expansion of South-South
trade in services.UNCTAD This study could be envisaged under the
CAPAS programme.*
13.  Under the general trade and industry
policy review, the involved Governmentofficials and the private sector should get
sectoral exposure on the elements of the
WTO Agreements as they relate to their
activities.
                                                     
*Funds are requested.WT/COMTD/IF/37
Page 42
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(q):
Technical assistance needs in the area of
trade promotion and support services
1.  There is need for orienting commercial
representatives.
2.  Attachments of commercialrepresentatives to selected and targetedcountries.
3.  An evaluation of main organisationsdealing with trade promotion and thosecharged with providing export services.ITC/
UNCTADPart of the feasibility study for a Trade Point
mentioned under B(g)2 would evaluate localorganisations, their services and identify
possible areas for collaboration.
*
4.  The establishment of trade information
cell offices in the main industrial and
trading centres.
5.  Examine the design, quality and
packaging practices, especially in selected
products of export potential.ITC ITC will continue through its eco-packaging
projects to assist local exporters to adapt to
regulatory initiatives affecting packaging in
target markets. *
6.  It is imperative to hold seminars for
officials handling policy on trade in
services.UNDP/
UNCTADA regional workshop under the RAF/96/001
programme will be conducted in the region
to train government officials and privatesector representatives and NGOs in policy
and rule-making under the WTO.
UNCTAD Such training could be arranged under the
CAPAS Programme.*
7.  A hand-book on internationalprocurement procedures and a guide on
import techniques.ITC Selected documentation including manuals
on International Purchasing and Supply
Management will be made available during
1998 to related Malawi institutions.
8.  A guide on Inventory Management
Practices.ITC See B(q)7 immediately above.
                                                     
*Funds are requested.WT/COMTD/IF/37
Page 43
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(q) (cont'd):
9.  Formulation of appropriate export
financing schemes.ITC ITC has planned to provide advice in 1998
to the government on the Harmonization of
Bank Guarantees.
10.  Educational study tours for selected
entrepreneurs with export potentiality.
11.  Need to strengthen SME managementcapabilities in export marketing.ITC Export marketing workshops on selected
products will be organized in 1998-1999
under ongoing regional projects aiming at
the development of intra-regional trade inAfrica.
12.  Assistance in resources/or exportexpansion.WT/COMTD/IF/37
Page 44
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(v):
Technical assistance as regards market
access
1.  Identification of trends in the
international demand for products of export
interest to Malawi.ITC/
UNCTADSee B(g) 2, 6, 11 and B(q) 11.
2.  Calculate investment risk in given
products.
3.  Identify the extent of external marketpenetration to be achieved in selected
markets and products.
4.  Assess potential of regional market and
propose ways of enhancing competitively
and exports.ITC Assistance will be provided during
1998-1999 under the ongoing regional ITC
projects to develop regional trade in market
development and product adaptation for
selected export potential products.  This willinclude the participation of enterprises in
buyers-sellers meetings and the organization
of related dissemination seminars.
UNCTAD See A(k)1.
5.  Suggest modalities for reducing per unittransport costs.
6.  Review product development for specificexport market opportunities.ITC See B(g)11.
7.  Strengthen market information at the
disseminating point (focal point) like the
Malawi Export Promotion Council (MEPC).ITC/
UNCTADSee B(g)2 and B(q)3.
8.  Improve MEPC staffing qualitatively and
quantitatively through training programmes.
9.  Evaluate impact of GSP and GSTPschemes.UNCTAD See A(k)1 and A(l)1.WT/COMTD/IF/37
Page 45
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(b):
Summary of technical assistance needs
according to priority
1.  AGRICULTURE
-  To examine the Malawi agricultural
policy in terms of rural development,promotion, investment subsidies, and input
subsidies and diversification in terms of the
Agreement as it relates to domestic support
measures of poor developing nations in the
context of Bretton Woods institutions.UNCTAD See A(k)1.
- Determine the support for adjustment
problems arising from reforms that improve
agricultural productivity and supply in terms
of least-developed and net food-importing
from Malawi.
- Calculate welfare gains and losses forMalawi's current and potential exports.UNCTAD See A(k)1.
-  Determine immediate technical and
financial needs for the improvement of
agricultural productivity and infrastructure.
- Study the competitiveness of agriculturalexports of interest to Malawi in the post
Uruguay Round in order to endure that there
are no losses in export earnings.UNCTAD See A(k)1.
-  Study the implementation of the Decision
on Measures Concerning the Possible
Negative Effects of the Reform Programme
on the Least-Developed Countries and Net-
Food-Importing Countries as it relates to
Malawi.WT/COMTD/IF/37
Page 46
Technical assistance needs identified in the
questionnaireOrganization Response
Question C(b) (cont'd):
2.  MARKET ACCESS
- Identify export market tariff positions ofproducts of export interest to Malawi.IMF Malawi is currently receiving customs
administration assistance from our FiscalAffairs Department as the country is
currently in the process of reforming its
tariff structure and reducing rates. We do not
anticipate that additional tax policy technical
assistance on trade matters would benecessary from the Fund.
-  Identify new potential markets in the post
Uruguay Round era.ITC See B(g)11, B(q)11 and B(v)4.
-  Examine the "erosion" of preferences on
the Generalized System of Preferences
(GSP) and the GSTP as well as the Lomé
Convention as a result of the reduction of
the MFN rates.UNCTAD See A(l)1.
3.  HUMAN RESOURCES
Malawi will need considerable financial andtechnical assistance to improve human
resources and institutional capacity to
administer the most specialized aspects of
the Uruguay round obligations.  In this
respect it is important to isolate the sectorsas provided in the check-list and to
formulate sectoral requirements.WTO See A(l) and A(m).
ITC,
UNCTAD,
UNDPSee A(m) and B(g)1.
4.  TRADE IN SERVICES
Technical and financial assistance to
support the development of the key services
sectors (the training of personnel is a
priority requirement in most sectors).  Thereis need to raise public awareness on the
implications of the acceptance of the GATS
and the strengthening of analytical and
policy making capacity in both the public
and private sectors.UNCTAD See B(g)12 and B(q)6.
WTO See A(l).WT/COMTD/IF/37
Page 47
Technical assistance needs identified in the
questionnaireOrganization Response
Question C(b) (cont'd):
5. TEXTILES AND CLOTHING
To study the impact of the Agreement inrespect of the Malawi industry on textiles
and clothing.UNCTAD See A(k)1.
6.  SUPPLY IMPROVEMENT
-  Need to review Government regulations,legislation and policies
-  Assist smaller firms in assessing their owninternational competitiveness.
7.  INFORMATION TECHNOLOGY
Strengthen the Trade Information Services
in the institutions dealing with trade-relatedactivities.ITC/
UNCTADSee B(g)2.
*
                                                     
*Funds are requested.WT/COMTD/IF/37
Page 48
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(c):
Additional information
In regard to the check-list, it is true that the
information provided may not be
exhaustive.  It is therefore imperative tomount a comprehensive country-wide
consultation so as to fill in the missing gaps.
This would require technical assistance.WT/COMTD/IF/37
Page 49
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(d):
Technical assistance needs in the area of
information technology including training of
human resources
Computer technology is available in Malawi
and some institutions can use tools such asCE-Rom, Internet, etc.  In the context of
training, the Malawi Export Promotion
council would require exposure to the new
information technologies.  This should
extend to the Chamber of Commerce andIndustry.  The ministry of Commerce and
Industry who are the focal point for the
administration and monitoring of the
Uruguay round aspects and for policy on
trade development would requirestrengthening and capacity building in the
use of new information technologies.WTO A computer will be installed at the Ministry
of Trade and Industry.  Internet  linkage hasbeen set up in April 1998.  Training has also
been made accordingly.
___________