RESTRICTED  
  
WT/TPR/S/335  
23 March 2016  
(16-1650)  Page: 1/71  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
MALAWI 
This report, prepared for the third Trade Policy Re view of Malawi, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Malawi on its trade policies 
and practices.  Any technical questions arising from this report may be addressed to Mr Arne Klau (022 739 5706) 
Mr Rosen Marinov (022 739 6391). 
 Document WT/TPR/G/335 contains the policy statement submitted by Malawi. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review  Body on Malawi. This report was drafted in 
English. WT/TPR/S/335 • Malawi 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
1   ECONOMIC ENVIRONMENT .......................................................................................... 9  
1.1   Main Features of the Economy ..................................................................................... 9  
1.2   Recent Econ omic Developments.................................................................................. 10 
1.3   Balance of Payments ................................................................................................. 11 
1.4   Developments in Trade .............................................................................................. 12 
1.5   Foreign Dire ct Invest ment ......................................................................................... 12 
1.6   Pr ospects ............................................................................................................... . 13 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 16  
2.1   Genera l Framework .................................................................................................. 16 
2.2   Economic and Trade Policy Objectives .......................................................................... 16 
2.3   Trade Agreements and Arrangements .......................................................................... 17 
2.3.1   WTO ................................................................................................................... . 17 
2.3.2   Regional and pr eferential agreements ....................................................................... 18 
2.3.2.1   Regional trade agreements ................................................................................... 18 
2.3.2.1.1   Common Market for Easter n and Southern Af rica (COMESA) ................................... 18 
2.3.2.1.2   Southern African Development Comm unity (SADC) ............................................... 18 
2.3.2.1.3   Tripartite Free Trade Area .................................................................................. 19 
2.3.2.2   Bilateral trade agreements ................................................................................... 19 
2.3.3   Other agreements and arrangements ........................................................................ 19 
2.4   Investme nt Regime .................................................................................................. 20 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 21  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 21 
3.1.1   Customs procedur es and requirements ..................................................................... 21 
3.1.2   Goods in transit ..................................................................................................... 22 
3.1.3   Customs valuatio n and rules of origin ....................................................................... 23 
3.1.4   Tariffs ............................................................................................................... ... 24 
3.1.4.1   Applied MFN tariffs .............................................................................................. 24 
3.1.4.2   Tari ff bindings .................................................................................................... 28 
3.1.4.3   Tariff exemptions and concessions ......................................................................... 29 
3.1.4.4   Tariff preferences ................................................................................................ 30 
3.1.5   Other charge s affecting imports ............................................................................... 31 
3.1.6   Import prohibitions, restrictions, an d licensing ........................................................... 33 
3.1.7   Anti-Dumping, countervailing, and safeguard measures ............................................... 34 
3.1.8   Standards and technical regulations ......................................................................... 34 
3.1.9   Sanitary and phyt osanitary requ irements .................................................................. 36 
3.1.10   Othe r measures ................................................................................................... 37 
3.2   Measures Directly Affecting Exports ............................................................................. 37 
3.2.1   Export procedur es and requirements ........................................................................ 37 WT/TPR/S/335 • Malawi 
 
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  3.2.2   Export taxes, charges, an d levies ............................................................................. 38 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 38 
3.2.4   Export suppo rt and pr omotion ................................................................................. 38 
3.3   Measures Affectin g Production and Trade ..................................................................... 40 
3.3.1   In centives ............................................................................................................  40 
3.3.2   Competition policy and price controls ........................................................................ 40 
3.3.2.1   Competition policy .............................................................................................. 40 
3.3.2.2   Pric e contro ls ..................................................................................................... 42 
3.3.3   State trading, state-owned enterprises, and privatization ............................................. 42 
3.3.4   Governme nt procurement ....................................................................................... 43 
3.3.5   Intellectual property rights ...................................................................................... 44 
4   TRADE POLICIES BY SECTOR ..................................................................................... 46  
4.1   Introduction ............................................................................................................. 46 
4.2   Agriculture ............................................................................................................. . 46 
4.2.1   Main features and policy ob jectives .......................................................................... 46 
4.2.2   Policy measures ..................................................................................................... 47 
4.2.3   Key sub-sectors ..................................................................................................... 49 
4.2.3.1   Maize ............................................................................................................... . 49 
4.2.3.2   Tobacco ............................................................................................................. 49 
4.2.3.3   Sugar ............................................................................................................... . 50 
4.2.3.4   Tea ................................................................................................................. .. 50 
4.2.3.5   Cotton .............................................................................................................. . 51 
4.2.3.6   Ot her crops ........................................................................................................ 51 
4.2.3.7   Livest ock ...........................................................................................................  51 
4.2.3.8   Fishing ............................................................................................................. . 52 
4.2.3.9   Forestry ............................................................................................................. 52 
4.3   Mining and energy .................................................................................................... 53 
4.3.1   Mining and quarrying .............................................................................................. 53 
4.3.2   Energy ................................................................................................................ . 53 
4.3.2.1   Hy drocarbons ..................................................................................................... 53 
4.3.2.2   Electricity ........................................................................................................... 54 
4.4   Manuf acturi ng .......................................................................................................... 55 
4.5   Services ................................................................................................................ .. 55 
4.5.1   Main features and policy ob jectives .......................................................................... 55 
4.5.2   Financial services ................................................................................................... 56 
4.5.2.1   In troducti on ....................................................................................................... 56 
4.5.2.2   Banking .............................................................................................................  56 
4.5.2.3   Insurance and Pension Funds ................................................................................ 57 
4.5.2.4   Microfinance an d financial cooperatives .................................................................. 57 
4.5.2.5   Capital market .................................................................................................... 58 WT/TPR/S/335 • Malawi 
 
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  4.5.3   Communica tion services ......................................................................................... 58 
4.5.3.1   In troducti on ....................................................................................................... 58 
4.5.3.2   Telecommunication ............................................................................................. 58 
4.5.3.3   Postal services .................................................................................................... 59 
4.5.4   Transp ort services ................................................................................................. 59 
4.5.4.1   Land transport and transport corridors ................................................................... 59 
4.5.4.2   Air transport ....................................................................................................... 60 
4.5.4.3   Wate r transport .................................................................................................. 61 
4.5.5   Tourism ................................................................................................................ 62 
REFERENCES .................................................................................................................. 6 3 
5   APPENDIX  TABLES .................................................................................................... 65  
 
CHARTS 
 
Chart 1.1 Composition of merc handise trade, 2008 and 2014 ................................................. 14 
Chart 1.2 Direction of merchandise trade, 2008 and 2014 ...................................................... 15 
Chart 3.1 Tax revenue by  category, FY 2014- 15 ................................................................... 24 
Chart 3.2 Distribution of MFN applie d tariff rates, 2009- 10 and 2 014-15  .................................. 26 
Chart 3.3 Tariff escalation by 2-digit ISIC in dustry, 2015-16  .................................................. 28 
Chart 3.4 Distribution of preferen tial tariff rate s, FY 2015-16 ................................................. 30 
Chart 3.5 IQMS inspections and import certificates granted, 2010-2015 ................................... 35 
 
TABLES 
 
Table 1.1 Basic economic indicators, 2009-15  ....................................................................... 9  
Table 1.2 Sectoral contribu tion to GDP,  2009-14  ................................................................... 9  
Table 1.3 Balance of payments, 2010-2015  ......................................................................... 11 
Table 2.1 Notifica tions, 2009- 2015 ..................................................................................... 17 
Table 3.1 Structure of MFN tari ffs in Malawi, 2009-2010 and 2015-16 ..................................... 25 
Table 3.2 Malawi's applied MFN tariff summa ry, 2015- 16 ....................................................... 26 
Table 3.3 Tariff lines where applied tariff rates exceed bound tariff rates, 2015-2016 ................. 28 
Table 3.4 Summary analysis of applied MFN and preferential  tariffs, 2015 ................................ 30 
Table 3.5 List of product groups subject to excise duties ........................................................ 32 
Table 3.6 Goods subject to import licensing ......................................................................... 33 
Table 3.7 Competition and Fair Tr ading Act enforc ement, 2010-15  .......................................... 41 
Table 3.8 Selected state-ow ned enterprise s, 2010- 15 ........................................................... 42 
Table 4.1 Production of selected agricultural products, 2008-14 .............................................. 46 
Table 4.2 Tea production and exports, 2009-15 .................................................................... 51 
Table 4.3 Total fish  producti on, 2008- 14 ............................................................................. 52 
Table 4.4 Characteristics of main international transport corridors ........................................... 60 
Table 4.5 Passengers handled at Chileka and Kamuzu international airports, 2007-15 ................ 61 WT/TPR/S/335 • Malawi 
 
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  Table 4.6 Malawi, tour ism sector 2009-13 ........................................................................... 62 
 
BOXES 
 
Box 3.1 Industries eligib le for tari ff rebates ......................................................................... 29 
 
APPENDIX TABLES 
 
Table A1.1 Merchandise exports, including re-exports by produc t group, 2008-14 ..................... 65 
Table A1.2 Merchandise exports, includin g re-exports by de stination,  2008-14  ......................... 66 
Table A1.3 Merchandise import s by product gr oup, 2008 -14 .................................................. 67 
Table A1.4 Merchandise im ports by orig in, 2008- 14 .............................................................. 68 
 
 
Table A4.1 Applied MFN tariffs, by ISIC Rev.2 category, 2015-16 ............................................ 69 
 
 WT/TPR/S/335 • Malawi 
 
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  SUMMARY 
1. Malawi's economy has grown strongly in most years since its last trade policy review (TPR) 
in 2010. While annual GDP growth rates peaked at 9.5%, the period under review also included a 
marked slowdown of the economy in 2012.  Total merchandise trade increased rapidly during the 
period under review, from 60% of GDP in 2010 to 102% in 2014. Malawi is a least developed 
country with a largely agricultural economy; as a result, its performance remains vulnerable to adverse weather conditions and terms of trade shocks. 
2. Despite some improvements in recent years, Malawi remains one of the world’s poorest 
countries in terms of most development indicators. Gross national income per capita is estimated at some US$250. Annual population growth is very  high and has even been increasing over the 
last years. The labour market is largely informal. Malawi has traditionally been highly dependent 
on donor support. However, during the period under review it has had an on-off relationship with 
many of its donors. 
3. The cost of doing business in Malawi remains very high, due to significant challenges related 
to transport, communication, energy, and admini strative barriers. This impacts on Malawi's 
competitiveness in international markets as well as its ability to attract meaningful foreign direct investment, in spite of an investment regime that is generally open. Malawi's fiscal situation has 
continued to face challenges during the review period. Public debt has strongly increased which 
partly reflects recourse to domestic financing in the wake of external financing shortfalls arising from the suspension of external budget support.   
4. The main objective of monetary policy is to  achieve price stability. Until 2012, the Malawi 
kwacha was pegged to the US dollar, but strong overvaluation led to a parallel market with 
significant departures from the official exchange  rate. This contributed to chronic shortage of 
foreign exchange and imported inputs, low international competitiveness, and a high cost of doing 
business. In May 2012, the Government adopted a floating exchange rate regime.  This was 
accompanied by a strong devaluation of the kwacha , a recovery of foreign reserves, and a surge in 
inflation which peaked at over 28% in 2013. Since then, inflation rates have followed a slow 
downward trend, but surged again to attain 26% in December 2015.   
5. During the period under review, Malawi's current account deficit increased steadily, mostly 
because of a strong increase in merchandise impo rts, while export growth could not keep pace.  
The deficit has largely been financed by FDI inflow s and current transfers.  Transfers consist to a 
large extent of official development assistance flows, while remittances only play a limited role.   
6. Agricultural exports continue to dominate, but their share has been falling. Tobacco has 
remained by far the most important export commo dity, although its share fell from 67% in 2008 
to 47% in 2014. Other goods that have continued to  be of relevance for export include tea, sugar, 
and uranium. Imports are largely dominated by manufactures. Malawi exports the bulk of its products to other African countries and the EU, while imports are mainly sourced from South 
Africa, Mozambique, India, the EU and China.  
7. The Malawi Growth and Development Strate gy 2011-16 is the overarching medium-term 
development strategy.  Its main objective is to continue reducing poverty through sustainable, 
private-sector driven economic growth and infrastructure development. The Government 
recognizes that its success will largely depend on sound macroeconomic management and a stable 
political environment in order to attract investment and finance the state budget.  
8. During the period under review, Malawi launched several trade facilitation initiatives, 
including the opening of one-stop border post s, enhancement of the COMESA Simplified Trade 
Regime, the adoption of a national single window programme, and migration from its current Automated System for Customs Data (ASYCUDA++ ) to the web-based version ASYCUDA World. 
However, the submission of customs declarations in hard copy remains the norm. Malawi has not 
yet ratified the Agreement on Trade Facilitation and has not notified its Category A commitments to the WTO. According to the authorities, the re levant technical work has been completed and the 
ratification process is in its final stage. WT/TPR/S/335 • Malawi 
 
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  9. Malawi maintains preferences under bilate ral trade agreements with Mozambique, the 
Republic of South Africa, and Zimbabwe, as well as a customs agreement with Botswana that dates from the colonial period; bilateral preferen ces have largely been matched by those granted 
in the context of COMESA and SADC.  Whenever ther e is an overlap in terms of trading partners 
and tariff concessions, importers may choose which certificate of origin to obtain, depending on 
the terms they identify as more advantageous. Malawi also maintains rules of origin for non-preferential purposes, although its notifi cation to the WTO indicates otherwise. 
10. Malawi has bound 31.6% of its tariff lines at ad valorem  rates ranging from 20% to 125%; 
by and large, it retains considerable flexibility for autonomous tariff increases. On six tariff lines, Malawi's applied rates exceed the corresponding bound levels by 75 percentage points; the authorities have indicated their intention to addr ess these breaches in the budgetary deliberations 
for FY 2016-17. 
11. The simple average applied MFN tariff in FY 2015-16 is 12.7%, down from 13.1% in FY 
2009-10. The tariff comprises eight bands: zero, 5%, 7.5%, 10%, 15%, 20%, 25%, and 200%, 
against six bands (zero, 5%, 7.5%, 10%, 20%, and 25%) in FY 2009-10. Malawi applies no tariff 
quotas. Agriculture remains the most tariff-protected sector: the average applied tariff on agricultural products (WTO definition) is 18.8% (up from 17.3% in 2009), whereas the 
corresponding average for non-agricultural products stands at 11.6% (down from 12.5% in 2009). 
12. Malawi maintains licensing requirements and a system of trade permits for the importation 
and exportation of certain goods; permits typica lly specify the total quantity and value of a 
particular product that can be traded. In June 2013, the number of items controlled on exportation 
was reduced from 25 to 10. The importation or exportation of certain goods, such as agricultural 
products, requires both a trade permit and a licence. The submission and processing of 
applications for permits and licences remains non-computerized and must be carried out in the 
capital, Lilongwe. 
13. Malawi has not taken any anti-dumping actions during the period under review; it has yet to 
establish an authority competent to conduct anti-dumping investigations. Malawi also lacks the 
legal and institutional frameworks for the application of countervailing measures and safeguards. 
14. Malawi should gain a lot from a simplification of import procedures relating to standards and 
technical regulations. The Malawi Bureau of Standards (MBS) retains sole responsibility for the testing and certification of goods and services subject to technical regulations; it carries out 
periodic inspections on the domestic market and, under the so-called Import Quality Monitoring 
Scheme (IQMS), the compulsory testing of all cons ignments of such goods entering Malawi. Malawi 
does not recognize certificates and test reports from certification bodies accredited overseas, 
including those from the SADC/COMESA region. Owing to a lack of international accreditation of its 
facilities, the certificates and test reports issued by the MBS under its Export Quality Certification Scheme are generally not accepted in foreign markets.  
15. There has been little change to Malawi's SPS regime during the period under review; the 
legislation in force remains outdated and a range of capacity weaknesses are yet to be addressed. One notification was made to the WTO SPS Committee during the review period. While a general import ban on genetically modified organisms (GMOs) remains in place, authorizations for 
experimental purposes have been granted on two occasions. 
16. The registration and customs clearance procedures for exports are similar to those for 
imports; in addition, exports require a currency declaration. Malawi levies a tax of 50% on exports 
of wood in a rough state; the stated purpose of  this tax is to encourage local value addition. 
During the period under review Malawi maintained export prohibitions on certain goods, including maize and maize products, and raw hardwood timber. Malawi's exports benefit from unilateral 
preferences in major export markets. 
17. As regards export support and promotion, Malawi has created the Malawi Investment and 
Trade Centre, and set up an Export Developmen t Fund, which has so far been predominantly 
active in the provision of trade finance. On the domestic market, agro-processing and electricity 
generation, transmission and distribution have b een designated as priority industries and have 
been granted fiscal incentives. WT/TPR/S/335 • Malawi 
 
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  18. State involvement remains prevalent in many sectors of the Malawian economy and, in 
some cases, continues to crowd out private entrepreneurs. Besides soft budget constraints, some SOEs have benefitted from tax concessions on the acquisition of motor vehicles, equipment and machinery, as well as from preferential access to  land. During the period under review, Malawi 
revisited its privatization programme with a view to prioritizing public-private partnerships as a 
means of attracting strategic investors. Nevertheless, progress on privatization has apparently been slow. 
19. There have been no changes to the intellectual property (IP) regime in Malawi during the 
period under review. The authorities have drafted an IP policy that should guide the review of outdated laws with a view to integrating the IP  system into government development strategies. 
Implementation of the IP policy faces a number of  challenges, including lack of human resources 
and finance; inadequate infrastructure for managing and administering IPRs; absence of IPR-
related training and educational institutions and services; and lack of awareness among major stakeholders. 
20. Agriculture continues to play a central role in the Malawian economy; it contributes around 
30% to GDP and 75% to export earnings. However, sectoral GDP shares have gradually shifted away from agriculture while mining and vari ous service subsectors have increased their 
contribution.  Maize is the country's staple food. Food security is the main policy objective for the 
agriculture sector, and a programme that provides subsidized fertilizer to maize farmers is the main instrument to achieve this. The fisheries sector is important as a source of employment, food, and biodiversity. Deforestation continues at very high rates. 
21. The mining sector contributes about 5% to GDP. The bulk of fuel is imported. Malawi's 
manufacturing sector is relatively small, with agro-processing being the dominant activity. Less than 10% of Malawi's population has access to electricity. Electricity prices remain under 
government control and, despite some recent price increases, remain amongst the lowest in the 
world, which strongly discourages investment in the sector. The shortfall in electricity supply has been recognized as a major growth constraint, and a factor in deterring investors and weakening 
the competitiveness of local industries.   
22. Services constitute about half of GDP. Malawi has made only a few commitments under the 
GATS. The services balance has traditionally posted a deficit. Malawi undertook a number of financial services sector reforms during the period under review with a view to increasing financial 
inclusion. The telecom sector has grown strongly since the last review, mainly driven by mobile 
subscriptions. Road transport remains the domina nt mode of transport, and transport prices 
remain high. Privatization and partial liberalization of air transport services have led to increased 
competition and lower prices on regional routes. The tourism industry is still in its infancy, but 
offers great potential for development both as a foreign exchange earner and for the provision of employment. 
23. As a landlocked country, Malawi depends heavily on the efficiency of transit corridors and 
ports in neighbouring countries. Although some progress has been achieved over the past six years, the corridors still lack efficiency. Transport time to the nearest maritime port is usually still 
several days. This increases the cost of trading and also limits the range of exportable products, 
effectively excluding most types of perishables.  
 
 WT/TPR/S/335 • Malawi 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Main Features of the Economy  1.1.  Malawi is a landlocked least developed country that shares borders with Zambia, Tanzania 
and Mozambique. It occupies an area of 118,484 km
2 and has a population of 16.7 million people. 
Malawi's economy is predominantly agriculture-based. GDP at market prices stood at about 
US$4.3 billion in 2014 and annual GDP growth averaged 5.9% between 2009 and 2015, which 
included a marked slowdown in 2012 (Table 1.1).  
Table 1.1 Basic economic indicators, 2009-15  
 2009 2010  2011  2012  2013 2014 2015  
Population (millions) ..      14.8        15.2          15.7        16.2       16.7 ..  
GDP current (MK million) 868,304 950,918  986,832  1,004,184  1,054,571 1,119,080 .. 
Real GDP growth (annual %)  8.3 9.5  3.5 2.1 6.1 6.3 5.8a 
Inflation  
(CPI, annual average, %)  .. .. 7.6 21.3 28.3 23.8 .. 
Exports of goods and services  
(% of GDP)  .. 29   30   37   48   46   .. 
Imports of goods and services  
(% of GDP)  .. 45   40   52   61   56   .. 
Gross capital formation  
(% of GDP)  .. 26   15   17   16   15   .. 
Merchandise trade  
(% of GDP)  .. 60             68               84       104   102   .. 
External debt stocks  
(US$ billions)  .. 1.04   
        1.21         1.32         1.56  ..  ..  
FDI net inflows (US$ million)  49 97 129 129 120 130 .. 
Net official development 
assistance and official aid received 
(US$ million)  ..   1,023           800         1,175       1,126  ..  ..  
Foreign exchange reserves 
(end-of-year) (US$ million) .. .. .. 236 397 588a .. 
..  Not available.  
a  Provisional. Note: The National Statistical Office (NSO) of Mala wi recently rebased thei r nominal GDP series from 
 calendar year 2007 to 2010. As a result, some key indicators have changed significantly, by up to 
29%. 
Source:  National Statistical Office, World Bank (World  Development Indicators), UNCTAD (World Investment 
Report), International Monetary Fund. 
1.2.  Agriculture contributes about 30% to GDP (down from 45% in 1990), manufacturing some 
10%, and services slightly over 50% (Table 1.2). The agriculture sector remains the mainstay of 
Malawi's economy in terms of contribution to employment and foreign exchange. Tobacco is the prime cash crop and most important cash commodi ty, although its importance has declined over 
the past years. Other important commodities include maize (the country's staple food), rice, tea, 
sugar, and cotton. In recent years, Malawi ha s managed to attain self-sufficiency in food. 
However, regular adverse weather conditions and unstable commodity prices have posed challenges to food security and the growth of the agriculture sector. The manufacturing sector is of 
limited size. It is still dominated by agro-processi ng and lacks diversification. The services sector 
contributes about half of GDP (up from 26% in 1990), with wholesale and retail being the most important subsector.  
Table 1.2 Sectoral contri bution to GDP, 2009-14 
(%) 
Sector  2009 2010 2011 2012 2013 2014 
Agriculture, fore stry and fishing 30.6 29.0 29.9 28.7 28.9 29.0 
Mining and quarrying 0.8 4.7 4.4 5.0 5.2 5.3 
Manufacturing 10.4 9.7 9.5 9.3 9.4 9.3 
Electricity, gas and water supply 1.4 1.3 1.3 1.3 1.3 1.3 
Construction 2.8 3.0 2.8 2.8 2.9 2.9 
Wholesale and retail trade 16.2 15.8 15.6 15.7 15.5 15.5 
Transportation and storage 2.0 1.9 1.9 1.9 1.9 1.9 
Accommodation and food services 1.8 1.8 1.7 1.8 1.7 1.8 
Information and communication 3.6 3.5 3.5 3.7 3.8 3.9 WT/TPR/S/335 • Malawi 
 
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  Sector  2009 2010 2011 2012 2013 2014 
Financial and insurance activities 4.2 4.2 4.4 4.6 4.7 4.7 
Real estate activities 7.5 7.5 7.4 7.5 7.4 7.3 
Public administration and defence 3.3 3.2 3.0 3.1 3.1 3.1 
Source: Malawian authorities. 
1.3.  By most standards, Malawi remains one of the world's poorest countries, although the 2014 
Welfare Survey notes marked improvements in several of Malawi's health, education, and sanitation indicators.
1 Gross national income per capita is estimated at some US$250.2 Some 51% 
of the population lived under the national poverty line in 2010, down from 65% in 1997. Life 
expectancy at birth was 55 years in 2013. On UNDP's 2014 Human Development Index, Malawi ranks 173
rd out of 187 countries and territories. Adult HIV prevalence is 10.8%; the adult literacy 
rate is 61.3%. Annual population growth is esti mated at 3.1%, up from 2.4% in the 1990s. 47% 
of the population is 15 years or younger. The labor market is largely informal. The labour force participation rate is estimated at 83%. 
1.4.  Malawi has traditionally been highly depend ent on donor support. On average, about 35% of 
the state budget had been financed by external do nors. This figure declined strongly, however, 
after the uncovering of a major corruption case ("cashgate") in 2013.  
1.5.  Malawi continues to face significant challenges related to transport, communication and 
energy. These, together with a number of administrative barriers, contribute to a high cost of 
doing business. This to some extent negatively impacts on the country's competitiveness on the 
international market as well as its ability to attract meaningful foreign direct investment. In 
addition, Malawi's strong dependence on exports of tobacco, a single highly seasonal and weather-
dependent cash crop, results in large within-year and year-to-year swings in export earnings and the exchange rate. 
1.2  Recent Economic Developments 
1.6.  In 2011, the Government adopted the Mala wi Growth and Development Strategy 2011-16 in 
which poverty reduction remains a main objective, to be achieved through sustainable, private-sector driven economic growth and infrastructu re development. The Strategy's macro-economic 
objectives include reducing inflation to single-digit levels, increasing foreign exchange reserves to 
at least three months' import cover, and improving the investment climate. 
1.7.  Monetary policy is formulated by a Monetary Policy Committee which comprises 
representatives of the Reserve Bank of Malawi (R BM), the Ministry of Finance, and academia. The 
main monetary policy objective is to achieve price stability. The RBM also aims to build foreign exchange reserves in order to manage exchange rate movements in a credible manner and better cushion the market from shocks.  Since January 2014, the RBM has been using an interest rate 
targeting framework. Liquidity reserve requiremen ts and open market operations are its main 
policy instruments.  
1.8.  Until 2012, the Malawi kwacha was pegged to the US dollar, but strong overvaluation led to a 
parallel market with significant departures from the official exchange rate (usually between 10% to 
20%, in some cases up to 80%). The rigidity in the official exchange rate contributed to a chronic shortage of foreign exchange, low international co mpetitiveness, a high cost of doing business, 
and the slowdown in 2012. In May 2012, the Govern ment abandoned its fixed exchange rate and 
adopted a floating exchange rate regime.
3 This was accompanied by a strong devaluation of the 
kwacha by about 33% and a surge in inflation. Since May 2012, the RBM has not set a target exchange rate and allowed substantial fluctuation in the exchange rate. Official actions continue to 
play a role in influencing the exchange rate, but its movements are largely market-determined. 
Certain capital controls still remain in place, e.g. on offshore borrowing and foreign direct investment in Malawi. 
                                               
1 National Statistical Office (2015). Based on purchasing power parity, Malawi's per capita income is 
estimated at US$790. 
2 World Bank, World Development Indicators . 
3 The change in the exchange rate regime was preceded by several major donors suspending their 
general budget support to Malawi as a result of the ab sence of agreement between Malawi and the IMF on the 
review of reforms to address external economic imbalances, including exchange rate misalignment. WT/TPR/S/335 • Malawi 
 
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  1.9.  Inflation rates surged with the liberalizatio n of the exchange rate in May 2012 and peaked at 
over 28% in 2013. Since then, they have followed a slow downward trend, but, driven by food 
shortages, surged again in the second half of 2015 to attain 26% in December 2015. In the long run, the authorities target an inflation rate of 5% . Against the background of high inflation rates, 
nominal interest rates have remained at high levels. In October 2015, the RBM's Monetary Policy 
Rate stood at 25%, the average base lending rate at 33.4%, and the 3-month fixed deposit rate at 11.5%. 
1.10.  Malawi's fiscal situation has remained challenging during the review period. The "cashgate" 
scandal that came to light in October 2013 and which involved large-scale theft of public funds, exposed significant deficiencies in Malawi's fiscal system and, in response, led donors to suspend budget support. The scandal not only necessitated a sharp curtailment of programmed 
expenditure, but also undermined trust in public financial management systems. Furthermore, the 
fiscal sector accumulated significant domestic payment arrears to suppliers (about 5.5% of GDP) who experienced payment difficulties with banks, leading to an increase in non-performing loans 
and a tightening of lending conditions by banks. Public debt has strongly increased in recent years, 
from 57.2% of GDP in 2012 to 75.8% of GDP in 2014. The increase in debt partly reflects recourse to domestic financing in the wake of external financing shortfalls arising from the suspension of 
external budget support. 
1.3  Balance of Payments 1.11.  During the period under review, Malawi's current account deficit increased from less than 
US$400 million to over US$1.4 billion (Table 1.3). Th e increase in the current account deficit can 
be largely attributed to a strong increase in merchandise imports, while exports could not keep 
pace. The current account deficit has largely been financed by FDI inflows and current transfers. Transfers consist to a large extent of official de velopment assistance flows, as Malawi receives 
considerably less remittances than the rest of Sub-Saharan Africa.  
Table 1.3 Balance of payments, 2010-2015 
(US$ millions) 
 2010  2011  2012  2013 2014 2015a 
A. Current account -394.0  -1,093.1  -672.7  -1,351.7 -1,124.1 -1,425.7  
Goods: exports f.o.b. 1,189.8  1,539.2  1,278.0  1,280.0 1,453.0 1,489.2  
Goods: imports f.o.b. 1,885.1  2,628.7  2,355.8  2,717.5 2,840.6 3,002.2  
Balance on goods -695.3  -1,089.4  -1,077.7  -1,437.5 -1,387.6 -1,512.9  
Services: credit 80.1  86.3 105.3  114.3 101.9 115.9  
Services: debit 229.4  231.9  223.4  229.4 245.9 296.3  
Balance on goods and service s -844.6  -1,235.0  -1,195.9  -1,552.5 -1,531.6 -1,693.3  
Income: credit 1.8 2.4 3.3 2.6 3.2 3.6 
Income: debit 192.3  379.3  50.0 178.6 189.3 230.7  
Balance on goods, services, and income -1,035.1  1,611.9  -1,142.6  -1,728.5 -1,717.6 -1,920.5  
Current transfers: credit 651.7  532.8  484.1  389.8 607.8 511.6  
Current transfers: debit 10.6 14.0 14.2 13.0 14.4 16.8 
B. Capital account 710.0  458.3  359.6  217.1 567.2 292.7  
Capital account: credit 710.2  458.4  359.8  217.3 567.4 292.9  
Capital account: debit 0.1  0.1 0.2 0.1 0.2 0.2  
Total, groups A plus B 316.0  -634.8  -313.1  -1,134.6 -556.9 -1,133.0  
C. Financial account 141.7  917.7  85.4 981.3 997.2 1,074.1  
Direct investment abroad 42.3 49.6 49.8 45.5 50.4 59.0 
Direct investment in Malawi 97.0  1,128.2  -52.3  626.5 694.2 812.6  
Portfolio investment assets 0.1 0.1 0.1 0.1 0.1 0.1 
Equity securities 0.1  0.1 0.1 0.1 0.1 0.1  
Portfolio investment liabilities  1.0 -1.1 8.2 7.5 8.3 9.7 
Equity securities 1.0  1.7 0.4 0.4 0.4 0.5  
Debt securities - -2.8 7.8 7.1 7.9 9.2 
Other investment assets -32.4  -31.6  -14.4  -76.7 -77.6 -120.8  
Banks -15.7  -20.2  9.1 -54.2 -23.6 -75.2  
Other sectors -16.8  -11.4  -23.5  -22.5 -54.0 -45.7  
Other investment liabilities 118.3  -128.4  193.5  469.4 422.6 431.5  
Monetary authorities 19.3  -0.8 56.4 56.2 50.4 34.4  
General government 64.5 181.8  89.8 206.4 128.9 123.2  
Banks -48.5  9.0 -1.8 3.6 7.0 10.3  
Other sectors 83.0 -318.5)  49.0 210.4 236.2 263.7  
Total, groups A through C 457.7  282.8  -227.7  -153.2 440.3 -58.9  
D. Net errors and omissions (NEO) -322.3  -391.5  253.0  339.0 -141.7 357.5  
Total, groups A through D  (overall 
balance)  135.4  -108.7  25.3 185.8 298.6 298.6  
E. Reserves and related items -135.4  108.7  -25.3  -185.8 -298.6 -298.6  
Reserve assets -135.4  108.7  -25.3  -185.8 -298.6 -298.6  WT/TPR/S/335 • Malawi 
 
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   2010  2011  2012  2013 2014 2015a 
Conversion rates: Malawi kwacha per 
US dollar 150.5  156.5  249.1  369.2 429.8 429.8  
NEO as a % of imports and exports -10.54  -9.44  7.02 8.53 -3.32 8.00  
a Projections. 
Source:  Reserve Bank of Malawi. Viewed at: http://www.rbm.mw/Sta tistics/EconomicData . 
1.4  Developments in Trade  
1.12.  The ratio of total merchandise trade and non-factor services to GDP grew from 74% of GDP 
in 2010 to 102% in 2014, indicating increased openness of Malawi's economy. Malawi has registered substantial growth in exports, which increased from US$879 million in 2008 to 
US$1,342 million in 2014 (Chart 1.1 and Table A1.1). Agriculture exports continue to dominate, 
but their share fell from 90% of total exports in 2008 to 73% in 2014. Tobacco has remained by far the top export commodity, although its share fell from 67% in 2008 to 47% in 2014. Within 
tobacco exports, there has been an increase in importance of stemmed tobacco, from 27% of 
tobacco exports in 2008 to 83% in 2014. Other commodities that have continued to be of relevance include tea and sugar. Other agricultural exports (8.8%) include cotton, coffee and pulses. The share of groundnuts in exports incr eased strongly, from 0.4% in 2008 to 3.4% in 
2014.  
1.13.  Malawi recorded a strong increase in the share of manufacturing exports, from 10.1% in 
2008 to 18.8% in 2014. Manufacturing exports are dominated by machinery and transport 
equipment (which could be re-exports). Mineral exports, mostly uranium ores and concentrates, 
made up 3.1% of total exports in 2014. After several years of strong increase, earnings from uranium exports fell in 2014 as the sole producer of uranium temporarily suspended operations. 
1.14.  Malawi exported the bulk of its products to African countries (39.9%) in 2014, a significant 
increase from the 26.7% share in 2008 (Chart 1.2 and Table A1.2). Main export destinations in 
Africa include Mozambique (9.7%), South Africa (7.8%) and Zimbabwe (6.6%). The EU was the destination for 34.7% of Malawi's exports in 2014, down from 45.5% in 2008. Belgium, the United 
Kingdom, the Netherlands, and Germany are the most important European trading partners. More 
than 9% of exports are destined for Asia (mostl y China), while less than 8% of Malawi's exports 
are for the Americas.  
1.15.  Imports increased from US$ 2.2 billion in 2008 to nearly US$2.8 billion in 2014. They are 
largely dominated by manufactures which accounted for 71% of total imports in 2014, down from 77% in 2008 (Chart 1.1 and Table A1.3). Within manufactures, fertilizer, machinery and 
equipment, and steel are of particular importance. Fuels made up 13.5% of the import bill in 2014, 
while food products accounted for nearly 10%. The country's major sources of imports in 2014 were South Africa (19%), Mozambique (11.8%), India (11.8%), the EU (10.3%) and China (10%) (Chart 1.2 and Table A1.4). While the share of most African countries has declined during the 
period under review, China and India have increased their importance as source country. 
1.5  Foreign Direct Investment 1.16.  Foreign direct investment (FDI) into Malawi is still limited, but has increased in recent years 
(Table 1.1). Malawi's total FDI stock was valued at US$1,239 million in 2014 (about 30% of GDP), 
up from US$1,165 million in 2011.
4 The leading investors include Switzerland, South Africa, the 
United Kingdom, Kuwait, Mauritius, and France. FDI inflows have gone mainly into mining, agro-
processing, energy, and railway construction. The Kayelekera uranium mine, which started 
operations in 2009, has remained Malawi's largest investment project in recent years. Outward FDI remains very limited. 
                                               
4 UNCTAD, World Investment Report 2015 . Viewed at: 
http://unctad.org/en/Pages/DIAE/World%20Inv estment%20Report/Country-Fact-Sheets.aspx . WT/TPR/S/335 • Malawi 
 
- 13 - 
 
  1.6  Prospects 
1.17.  A sharp deterioration in food security conditions is expected in 2015-16 due to an overall 
decrease in food production in 2015 caused by dr ought and floods. GDP is forecast to grow by 
about 4.5% in 2016 and then attain rates of 5.5% in the medium term. Inflation is estimated to 
ease in 2016 and reach single digits at end-2017 if fiscal and monetary policies tighten, and 
international prices for food and petroleum products remain low. The current account deficit (excluding transfers) is expected to remain around 8% reflecting the demand for imports 
associated with developmental projects, rapid po pulation growth, and the slow pace of export 
diversification.  
1.18.  Medium-term downside risks include the in terruption of donor budget support and weaker 
demand for Malawi's exports. In the long run, rapid demographic growth, institutional weaknesses 
in policy design and implementation, and weather-related shocks may also to threaten the 
sustained growth of Malawi's economy.  WT/TPR/S/335 • Malawi 
 
- 14 - 
 
  Chart 1.1 Composition of merchandise trade, 2008 and 2014 
% 
2008 2014
(a)    Exports, including re-exports  (f.o.b.)
Tobacco, stemmed 
18.4%
Manf.
10.1%Tobacco, 
stemmed 39.4%
Other agri. 
8.8%Other
4.7%
Tea 
5.5%Agri. raw material 
3.8%
Tobacco, 
not stemmed 
7.8%Beat/cane 
sugar 
4.5%Groundnuts 3.4%Machinery and 
transpoirt 
equip. 
11.9%Other manf. 
6.9%
Uranium ores 
and 
concentrates 
3.0%Manf.
18.8%
Agriculture
73.4%
Total:  US$879 million Total:  US$1,342 million  
(b)    Imports (c.i.f.)
Chemicals
27.4%Transport 
equipment  
8.5%
Manufactures
76.8%Other manf.
9.8%
Electrical 
machines
5.0%Iron and steel
3.0%
Non-electrical 
machinery
13.4%Fuels 9.7%Textiles and 
clothing 2.6%
Chemicals
26.4%Iron and 
steel
5.9%Fuels
13.5%Food
9.8%
Non-electrical 
machinery
9.0%Transport 
equipment  
6.7%
Electrical 
machines
5.4%Other
5.6%
Other semi-
manufactures
8.6%Other manf.
7.0%
Textiles and 
clothing 2.0%Food 12.0%
Manufactures
71.1%
Total:   US$2,204 million Total:  US$2,774 million Other
1.4%Other agri. 8.3%
Other semi-
manufactures
7.1%Agriculture
89.9%
Tea 4.2%Agri. raw material 
4.1%
Tobacco, not stemmed 
48.7%Beat/cane 
sugar 5.8%Groundnuts 
0.4%Machinery 
and 
transpoirt 
equip. 
1.8%Other 
manf. 
8.3%
 
 
Source: WTO Secretariat calculations, based on  UNSD, Comtrade database (SITC Rev. 3). WT/TPR/S/335 • Malawi 
 
- 15 - 
 
  Chart 1.2 Direction of merchandise trade, 2008 and 2014 
% 
2008 2014
(a)    Exports, including re-exports (f.o.b.)
China 
5.2%Middle
East
2.3%
Mozambique 
9.7%EU (28)
34.7%Other 
Asia
4.1%
South Africa
7.8%Zimbabwe 
6.6%Americas 7.6%
CIS 3.3%Other Africa
15.7%
Other Europe
3.0%Africa
39.9%Asia
9.3%
Total:  US$879 million T otal:  US$1,342 million
(b)    Imports (c.i.f.)
Africa 
61.3%EU (28) 10.8%
Zambia 3.1%
Mozambique 
20.3%Americas 2.8%
South Africa
26.6%China 3.3%Other 
Asia 
4.1%
Middle East
5.5%Japan 1.5%
Other Africa
11.4%Europe 
16.2%Other Europe
5.4%
CIS 0.4%India 
4.8%EU (28) 10.3%
Zambia 4.0%Mozambique
11.8%Americas 4.9%
South Africa
19.0%China 10.0%Other Asia 6.3%
Middle East
7.1%
Other Africa 
7.1%Africa 
41.9%Asia
32.4%Europe 
12.6%Other Europe
2.3%
CIS 
1.1%India 11.8%
Japan 4.4%
Total:   US$2,204 millionTotal:   US $2,774 millionAsia
13.8%China 
2.5%Middle
East
0.2%
Mozambique 
2.7%EU (28)
45.5%Africa
26.7%Other 
Asia
6.2%
Europe 
51.7%South Africa
10.1%Asia
8.7%
Zimbabwe 2.6%Americas 8.3%
CIS 4.5%Other Africa
11.3%
Other Europe
6.2%Europe 
37.7%
 
 
Source: WTO Secretariat calculations, base d on UNSD, Comtrade databade (SITC).  WT/TPR/S/335 • Malawi 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  General Framework 2.1.  Malawi's Constitution of 1995 establishes a hybrid of a presidential and a parliamentary 
system; it guarantees a multi-party democracy. Alth ough the Constitution provides that there shall 
be a Senate and a National Assembly, in practice, Malawi has a unicameral legislative body as only 
the latter is functional. Presidential elections are held every five years, with the President limited to serving two terms. The President is Head of  State and Government and commander-in-chief of 
the armed forces. Parliament, the National Assembly, is composed of 193 members and the 
President. Members of Parliament are elected by direct vote on a constituency basis. The legislative agenda is formulated by the executiv e, and approved by Parliament. Legislative and 
presidential elections take place simultaneously, and the last elections were held in May 2014. 
2.2.  The legal system is based on English commo n law and the independence of the judiciary. It 
consists of the Supreme Court of Appeal and the High Court, headed by the Chief Justice. In February 2011, Parliament approved legislation reintroducing local traditional courts handling most 
civil cases and minor criminal cases, as a means of making the legal system more accessible to 
rural Malawians. 
2.3.  Malawi has 27 administrative divisions or dist ricts. Elections of district assemblies take place 
within twelve months of presidential and parliamentary elections. As part of a move to decentralize 
government, local authorities have been granted the right to levy taxes and provide social services (Local Government Act of 1998). 
2.4.  Trade policy is mainly formulated by the Mini stry of Industry and Trade, in consultation with 
the Ministries of Finance and Agriculture, while implementation is essentially with the Malawi 
Revenue Authority. The Government consults regularly with private sector representatives on economic and trade policy issues.  
2.2  Economic and Trade Policy Objectives 
2.5.  The Malawi Vision 2020, launched in 1998, is a policy framework that sets out a long-term 
development plan detailing economic and social aspirations for 2020. In particular, it sets the goal 
of Malawi becoming a self-reliant and technologically driven middle-income country by 2020. The 
main economic objective is sustainable growth and development, with an emphasis on manufacturing (in particular the science and technology sector) as the key driver of the economy. The primary economic strategy employed to reac h these objectives is the Malawi Growth and 
Development Strategy (MGDS).  
2.6.  The Malawi Growth and Development Strategy II (MGDS II) is the second overarching 
medium-term national development strategy formulated to attain the country's long-term 
development aspirations. It covers a period of five years from 2011 to 2016. Building on MGDS I 
(2006-11) and the Poverty Reduction Strategy Paper, the main objective of MGDS II is to continue reducing poverty through sustainable, private-sect or driven economic growth and infrastructure 
development. The Government recognizes that su ccessful implementation of MGDS II will largely 
depend on sound macroeconomic management and a stable political environment. This is necessary to attract investment and mobilize resources to finance the budget. A new policy strategy, MDGS III (2016-21), is under preparation. 
2.7.  In addition to MGDS II, various specific documents outline the Government's policy plans for 
private sector development, investment, and expo rt promotion. The Private Sector Development 
Policy of 2009 has the objective of creating a favourable regulatory environment for Malawi's 
private sector. The National Investment Policy of 2011 has been formulated as the key guiding tool 
for facilitating private investment in Malawi. The National Export Strategy of 2011 aims to increase export competitiveness by identifying three product clusters (oilseeds, sugar cane, and 
manufactures) that should be the subject of promotion. WT/TPR/S/335 • Malawi 
 
- 17 - 
 
  2.3  Trade Agreements and Arrangements 
2.3.1  WTO 2.8.  As a former Contracting Party to the GATT 1947, Malawi became an original Member of the 
WTO in 1995. It is not a signatory of any of the plurilateral agreements concluded under the aegis 
of the WTO. Malawi's trade policies have been reviewed twice by the WTO's Trade Policy Review 
Body; the last review took place in July 2010.  
2.9.  Through the ACP, African, and LDCs groups , Malawi has been advocating for a meaningful 
developmental outcome of the DDA negotiations, including special and differential treatment, 
preferential rules of origin, a services waiver , duty-free and quota-free market access for LDCs, 
and the elimination of trade-distorting domestic support and export subsidies. It has also joined calls for additional resources for technical assistance and capacity-building through the Enhanced 
Integrated Framework and Aid for Trade. Although it has recognized the vital importance of the 
Trade Facilitation Agreement for landlocked countries
1, Malawi has yet to notify its Category A 
commitments and ratify the Agreement. According to the authorities, the technical prerequisites 
for ratification have been finalized and a draft instrument of acceptance is awaiting presidential 
signature; validation of a draft Category A notifica tion is expected to take place by end-February 
2016. 
2.10.  During the period under review, Malawi was involved as third party in dispute settlement 
proceedings concerning Australia's plain packaging requirements applicable to tobacco products.2   
2.11.  Notwithstanding recent efforts to provid e updated notifications to the WTO (Table 2.1), 
Malawi continues to have difficulties in complying with its notification obligations, which 
undermines the transparency of its legal framew ork for trade. Overall, Malawi's effective 
participation in the work of the WTO has been hindered by its limited human and financial resources, as well as the lack of permanent repres entation in Geneva. According to the authorities, 
Malawi is in the process of establishing a mission in Geneva. 
Table 2.1 Notifications, 2009-2015 
Agreement Requirement/contents Most recent notifications 
Agriculture  
Articles 10 and 18.2 Export subsidies (outlays and 
quantities) G/AG/N/MWI/6, 19.05.2015; 
G/AG/N/MWI/5, 15.03.2013 
Article 18.2 – DS:1 Domestic support G/AG/N/MWI/4, 15.03.2013 
Article VI of the GATT 1994 (Anti-Dumping)  
Article 16.5 Anti-dumping actions taken and 
competent authorities G/ADP/N/193/MWI, 19.04.2012 
Import Licencing Procedures 
Articles 1.4(a) and 8.2(b) Changes to laws and regulations 
and related information on procedures G/LIC/N/1/MWI/2, 26.10.2011 
Articles 5.1-5.4 Ad hoc G/LIC/N/2/MWI/2, 27.10.2011; 
G/LIC/N/2/MWI/3, 07.09.2015 
Article 7.3 Questionnaire: rules and 
information concerning import licensing procedures G/LIC/N/3/MWI/3, 26.10.2011; 
G/LIC/N/3/MWI/4, 09.10.2015 
Rules of Origin  
Article 5.1 and Para. 4 of Annex II Non-preferential and preferential 
rules of origin G/RO/N/129, 04.06.2015 
State Trading  
GATT 1994 Art. XVII: 4(a) and Para. 
1 of the Understanding on the Interpretation of Art. XVII Activities of state-trading 
enterprises G/STR/N/5/MWI, G/STR/N/8/MWI, 
and G/STR/N/9/MWI, 07.07.2015; G/STR/N/1/MWI, G/STR/N/4/MWI, G/STR/N/7/MWI, G/STR/N/10/MWI, and G/STR/N/11/MWI, 06.07.2015; 
G/STR/N/2/MWI, G/STR/N/3/MWI, 
G/STR/N/6/MWI, G/STR/N/12/MWI, G/STR/N/13/MWI, G/STR/N/14/MWI, and G/STR/N/15/MWI, 25.06.2015 
                                               
1 WTO document WT/MIN(15)/ST/75 of 21 December 2015. 
2 Complaints brought by Ukraine (WT/DS434), Ho nduras (WT/DS435), and Indonesia (WT/DS467). WT/TPR/S/335 • Malawi 
 
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  Agreement Requirement/contents Most recent notifications 
Subsidies and Countervailing Measures  
Articles 25.11 and 25.12 Countervailing actions taken and 
competent authorities G/SCM/N/202/MWI, 11.05.2015 
Safeguards  
Article 12.6 Safeguard legislation G/SG/N/1/MWI/1/Rev.1, 
05.08.2015 
Sanitary and Phytosanitary Measures  
Article 7, Annex B Changes in sanitary and 
phytosanitary measures G/SPS/N/MWI/2, 14.08.2015 
Source: WTO Secretariat. 
2.3.2  Regional and preferential agreements 
2.3.2.1  Regional trade agreements 
2.3.2.1.1  Common Market for Easter n and Southern Africa (COMESA) 
2.12.  Malawi grants duty-free market access to products originating from other COMESA 
members3 on reciprocity basis. Having participated in the COMESA free trade area since 2000, 
Malawi also joined partner countries in the gradual establishment of the COMESA Customs Union, which was launched in June 2009.
4 The draft Common External Tariff (CET) has three bands with 
the following rates: zero for raw materials and ca pital goods, 10% for intermediate products, and 
25% for finished goods.5 COMESA member States had agreed to align their respective national 
tariffs with the CET within a transition period of  up to five years, which has already expired. 
According to the authorities, Malawi is in th e process of migrating to the COMESA CET and the 
common tariff nomenclature; it remains engaged in negotiations on sensitive products that would 
require a longer transition period for rate alignment.6 Malawi is also in the process of incorporating 
the Common Market Customs Management Regulations in its domestic legislation. 
2.13.  Malawi is eligible for support from the COMESA Fund, comprising the COMESA Adjustment 
Facility and the COMESA Infrastructure Fund, which was established in 2002 to help member States cope with adjustment costs arising from the implementation of regional integration programmes. The authorities have indicated that the revenue sensitivity of some tariff lines 
continues to pose serious challenges in the process of trade liberalization.
7 While Malawi has not 
received any revenue loss compensations, fundin g from the COMESA Adjustment Facility has been 
allocated to the Malawi Enterprise Productivity Enhancement Programme.  
2.14.  Malawi participates in several COMESA initiatives aimed at facilitating trade flows among 
member States, such as the Regional Customs Bond Guarantee Scheme, the COMESA Simplified 
Trade Regime (Section 3.1.1), and the COMESA Yellow Card Scheme for motor vehicle insurance. 
It is also a party to the COMESA Protocol on Trade in Services and participates in a number of 
COMESA institutions.  
2.3.2.1.2  Southern African Development Community (SADC)8 
2.15.  Malawi is a signatory to the SADC Protocol on Trade, which paved the way for gradual 
liberalization of intra-community trade in goods and the formation, with a few exceptions, of a 
Free Trade Area.9 According to the authorities, Malawi has yet to eliminate certain duties on 
                                               
3 In addition to Malawi, members of  COMESA are: Burundi, Comoros, De mocratic Republic of the Congo, 
Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Seyc helles, Madagascar, Mauritius, Rwanda, Sudan, Swaziland, 
Uganda, Zambia, and Zimbabwe. 
4 COMESA was notified to the WTO under the Enabling Clause on 29 June 1995 (WT/COMTD/N/3). 
5 The draft CET of COMESA is similar to that of the East African Community. 
6 Malawi has aligned 1,503 tariff lines with the CET, reducing to zero the rates on 996 lines and 
increasing those on 507 lines to either 10% or 25%. 
7 COMESA, Report of the Thirty Second Meet ing of the Council of Ministers  (February 2014). 
8 In addition to Malawi, members of SADC are: Ango la, Botswana, Democratic Republic of the Congo, 
Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, 
and Zimbabwe. 
9 The phased reduction of tariffs on intra-community trade commenced in 2001 and reached the 
minimum mutually-agreed threshold for declaring a SADC Free Trade Area (duty-free access for 85% of 
originating goods) in August 2008.  WT/TPR/S/335 • Malawi 
 
- 19 - 
 
  imports from the Republic of South Africa (some 10% of tariff lines). The original SADC integration 
roadmap foresaw the establishment of a customs union in 2010, a common market in 2015, a monetary union in 2016, and an economic unio n in 2018; these milestones have yet to be 
attained.
10  
2.16.  SADC has put in place a mechanism for reporting and resolution of problems related to non-
tariff barriers to intra-community trade; common frameworks for SPS measures and technical barriers to trade (Annexes VIII and IX to the SADC Protocol on Trade) were approved in July 2014. 
In August 2012, SADC States also adopted a Protocol on Trade in Services, which sets out a 
negotiating mandate for the progressive removal of barriers without stipulating specific liberalization obligations. Other developments duri ng the period under review include the launching 
of a Regional Action Programme on Investment, th e adoption of an Industrialization Strategy, and 
the establishment of the SADC Admi nistrative Tribunal (SADCAT).  
2.17.  Malawi participates in SADC trade facilitation initiatives, such as the Single Administrative 
Document for customs declarations and coordinated border management through the 
establishment of one-stop border posts. It is eligible for support from the SADC Trade Related 
Facility (TRF), which has been established with a view to improving the participation of SADC member States in regional and international trade. According to the authorities, Malawi's requests 
for TRF assistance would prioritize projects related to industrialization and rules of origin. 
2.3.2.1.3  Tripartite Free Trade Area 2.18.  In June 2011, member States of COMESA, SADC and the East African Community (EAC) 
launched negotiations on a Tripartite Free Trade Area, with a view to rationalizing the integration 
processes in the Southern and Eastern Africa region , in line with the African Union Action Plan for 
the harmonization of regional economic communiti es throughout the continent. The initiative 
foresees the alignment of trade and transport facilitation policies and measures across the 26 
countries of the three regional blocs. The Tripar tite Free Trade Agreement (TFTA) was signed on 
10 June 2015, although some elements of the Phase I negotiations (e.g. rules of origin, trade remedies and dispute settlement) remain under  discussion. According to the authorities, 
negotiations on the industrial and infrastructure pillars of the TFTA are also ongoing, and various 
issues (trade in services, competition policy, export trade development, intellectual property rights and cross-border investment) will be taken up in Phase II negotiations after substantive completion of the Phase I work.  
2.3.2.2  Bilateral trade agreements 
2.19.  Malawi has bilateral trade agreements with  Mozambique, the Republic of South Africa, and 
Zimbabwe, as well as a customs agreement with Botswana that dates from the colonial period. 
While preferences under the bilateral and regional  trade agreements to which Malawi is a party 
mostly overlap, the former remain of practical relevance in light of differences in regulatory stringency, notably with respect to rules of origin. 
2.3.3  Other agreements and arrangements 
2.20.  Malawi receives Generalized System of Preferences (GSP) treatment from Australia, Canada, 
the Eurasian Economic Union, the European Un ion, Iceland, Japan, New Zealand, Norway, 
Switzerland, Turkey, and the United States. As a least developed country, it is also eligible for 
preferential market access to Chile, China, Indi a, Morocco, the Republic of Korea, Chinese Taipei, 
and Thailand.
11 Malawian exports of certain agricultural and textile products, except apparel, are 
also eligible, until 2025, for duty-free and quota-free access to the United States market under the 
African Growth and Opportunity Act (AGOA).12 Malawi is negotiating an Economic Partnership 
Agreement with the EU, as part of the Eastern and Southern Africa region; meanwhile it benefits from preferential access to the EU market under the Union's "Everything-but-Arms" Regulation.  
                                               
10 SADC has been notified to the WTO under Arti cle XXIV of the GATT 1994 (WT/REG176/N/1/Rev.1) 
and was considered by Members at the Committee on Regional Trade Agreements (WT/REG176/M/1) on 15 
and 16 May 2007. 
11 WTO PTA Database. Viewed at: http://ptadb.wto.org/ .  
12 Online information. Viewed at: http://agoa.info /. WT/TPR/S/335 • Malawi 
 
- 20 - 
 
  2.21.  Along with other African Union member States, Malawi participated in the launching of 
negotiations on a Continental Free Trade Area in June 2015.13 
2.4  Investment Regime  2.22.  Malawi's Constitution protects investment irrespective of ownership. The Investment and 
Export Promotion Act of 2012 governs domestic and foreign investments in Malawi and replaced 
the Investment Promotion Act of 1991. The Act does not discriminate between foreign and domestic investors. The Government allows foreign investments in most sectors of the economy 
without limitations on ownership, inve stment size, or source of funds.  
2.23.  There are only a few restrictions on foreign investment. Small-scale prospecting and mining 
operations are reserved for Malawians and foreigners who have resided in Malawi for a minimum of four years. Restrictions also apply to industries whose operations pose health, environmental, 
and security concerns (including manufacture of firearms, ammunition, chemical and biological 
weapons, explosives, or involving hazardous waste and radioactive materials). The minimum investment is US$50,000. Foreign firms are allowed to repatriate profits, dividends or any other 
funds. 
2.24.  The Malawi Investment and Trade Centre (MITC), established in 2012 as a merger of the 
Malawi Investment Promotion Agency and Malawi Export Promotion Council, is an investment 
promotion office for both foreign and local investors. The Malawi Growth and Development 
Strategy II (MGDSII) (2011-2016) identifies a number  of sectors as priority growth areas. Foreign 
investment is particularly encouraged in agriculture, mining, tourism, energy and transport infrastructure.  
2.25.  The Investment and Export Promotion Act establishes that investors must apply for an 
investment certificate with the MITC. 
2.26.  A wide-ranging industrial rebate schem e exempts investors from import duty, VAT, and 
excise tax on goods used for certain purposes, mainly manufacturing (Section 3.1.4.3). 
Investment incentives are also provided by the Export Processing Zones Act of 1995 (Section 3.2.4). These include 100% exemption from corporate income tax, exemption from 
withholding tax on dividends, a VAT rate of 0%, and exemption from duties on capital equipment, 
machinery and raw materials. 
2.27.  In practice, however, procedural delays and red tape continue to impede the business and 
investment approval process. While not discriminatory to foreign investors, investments in Malawi 
require multiple bureaucratic processes, which may include licensing and land use permissions that 
can be time-consuming and may constitute an impediment to investment. 
2.28.  Malawi ranked 110
th among 175 countries and territories in Transparency International's 
Corruption Perception Index, and 141st of 189 countries in the World Bank's 2016 Ease of Doing 
Business Index. The Anti-Corruption Bureau is mandated to enforce the Corrupt Practices Act of 1995. 
2.29.  Malawi has signed six bilateral investment treaties, with Egypt, Italy, the Netherlands, 
Malaysia, Chinese Taipei, and Zimbabwe.  
2.30.  Malawi is a member of the Multilateral Investment Guarantee Agency (MIGA) and the 
International Centre for the Settlement of Investment Disputes (ICSID).  
 
                                               
13 African Union online information. Viewed at: http://summits.au.int/en/25thsummit/events/african-
union-assembly-launches-continental-free-trade-area-cfta-negotiations . WT/TPR/S/335 • Malawi 
 
- 21 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Customs procedures and requirements 3.1.  The Malawi Revenue Authority (MRA), a government agency under the supervision of the 
Ministry of Finance, Economic Planning and Deve lopment, is responsible for the assessment and 
collection of tax revenues. Its remit includes the customs clearance of imports and exports in accordance with the Customs and Excise Act and the Control of Goods Act. The MRA also enforces 
various import and export controls on behalf of government ministries, as well as foreign exchange 
controls on behalf of the Reserve Bank of Malawi (Section 3.2.1).  
3.2.  During the period under review, Malawi launched one-stop border post initiatives at six 
border crossings. It has also established Joint Border Committees at three major border posts 
(Songwe, Mwanza and Dedza) with a view to im proving coordination among officials from the 
various agencies that intervene in the control of imports and exports (MRA, Malawi Bureau of 
Standards (MBS), Police, Ministry of Agriculture,  Irrigation and Water Development (MAIWD), and 
Ministry of Health). Nevertheless, physical inspec tions and sampling are, in general, still carried 
out independently, on the basis of each competent agency's selectivity criteria. Malawi adopted a national single window programme in 2013; the in stitutional framework for its implementation is 
expected to become operational in 2016. 
3.3.  Anyone wishing to import goods into (or export goods from) Malawi for commercial purposes 
must register with the MRA's Domestic Taxes Division to obtain a taxpayer identification number; registration is free of charge. Importers and exporters operating from permanent physical 
structures (premises) must also be in possession  of a business licence; the Ministry of Industry 
and Trade (MoIT) is the issuing entity for foreign applicants, whereas Malawian nationals may obtain the licence from the relevant city council. Applications for a business licence must be 
accompanied by copies of: the business certificate of registration or of incorporation; the 
certificate of registration for VAT; and, for foreigners, the business resident permit or permanent resident permit.
1 The business licence is valid for the financial year in which it was issued; it is 
renewable.2 
3.4.  Unless approved as private agents, importers are required to engage the services of 
professional clearing agents (customs brokers) for goods valued at or above MK 500,000.3 The 
customs clearance of such imports is done on the basis of: a declaration (Form 12); suppliers' 
invoices; a declaration of value (Form 19); a bill of lading (or airway bill) and shippers' invoices.4 
Where applicable, the supporting documentation must also include: an import licence and/or permit; a certificate of origin; or an SPS certificate. Commercial goods below the statutory 
customs value threshold may be declared directly by the importers on a simplified declaration 
(Form 47). The MRA has working procedures for pre-arrival processing of import-related documents; it is conducting feasibility studies for the introduction of an authorized economic 
operator scheme. To date, no formal mechanism ha s been put in place for the issuing of advance 
rulings. 
3.5.  In 2016, there were 110 licensed clearing agents in Malawi, including 4 firms operating on 
their own behalf (private agents); the corresponding figures for 2010 were 125 and 6, 
respectively. All clearing agents operate under an annual licence (renewable), which is issued by 
the MRA and must be backed with a bond of MK 500,000.
5 There are no legal provisions governing 
the fees charged by clearing agents; the MRA le vies a fee of MK 10,000 for the processing of 
import and export declarations, except those under the Simplified Trade Regime (see below).6 
                                               
1 Ministry of Industry and Trade online information. Viewed at: http://moit.gov.mw/index.php/48-
procedures/91-business-licence . 
2 The annual business licence fee ranges between MK 10,000 and MK 60,000, depending on the location 
of the applicant's premises. A fee of MK 1,000 is collecte d upon initial application; renewals are subject to the 
full annual fee.  
3 Prior to September 2015 the applicable threshold value was MK 100,000.  
4 According to the authorities, the declaration of va lue (Form 19) is required as a means of controlling 
for "arm's length" transactions (transfer pric ing) between the exporter and the importer. 
5 The annual licence fee is MK 10,000. 
6 Prior to FY 2011-12, the processing fee was MK 5,000. WT/TPR/S/335 • Malawi 
 
- 22 - 
 
  Since 2012, clearing agents have been able to submit declarations and supporting documents to 
the MRA through an online platform (remote Direct Trader Input); nevertheless, the finalization of customs formalities still requires submission of hard copies due to a lack of legislation on electronic signature.
7 
3.6.  Malawi, like other COMESA members, uses UNCTAD's Automated System for Customs Data 
(ASYCUDA++); an upgrade to ASYCUDA World, a web-based system, was rolled out on a pilot 
basis at two customs stations in November 2015.8 Since 2012, all customs declarations whose 
value for duty purposes is equal to or greater than MK 500,000, along with their supporting 
documents, are electronically sent to a single Declaration Processing Centre at the MRA's head 
office. The purpose of the centralized processing arrangement is to ensure the uniform application 
of applicable legislation, including on classification, valuation, and rules of origin.  
3.7.  Import declarations are assigned into one of three selectivity lanes: blue (immediate release 
with ad hoc post-clearance audit), yellow (documen tary check) and red (documentary and physical 
checks).9 Selectivity criteria are set by a steerin g committee, which also oversees their 
implementation at all customs stations; the MRA would welcome technical assistance towards 
automation of its risk management system. Since 2013, the MRA uses scanners for non-intrusive inspections of goods at one customs station.  
3.8.  In case of disagreement, importers must first lodge an appeal at the customs station of 
clearance, which could subsequently be escalated by the station manager to the MRA's head office. Once the avenues of redress within the MRA have been exhausted, traders may appeal in Malawi's 
courts. According to the authorities, most disputes relate to valuation, classification and origin 
decisions. 
3.9.  The MRA's service delivery has been negatively  affected by intermittent electricity shortages 
and network connectivity challenges experienced across Malawi. The 2015 World Bank Doing 
Business survey ranks Malawi 170
th out of 189 countries on the trading across borders indicator; 
the average customs clearance time frames for import and export transactions are estimated at three and two days, respectively. According to th e authorities, declarations with satisfactory 
supporting documentation are typically cleared in less than a day; a time release study has been 
envisaged for 2016, but its implementation would depend on securing external funding.  
3.10.  As part of COMESA's regional integratio n agenda, Malawi implemented a Simplified Trade 
Regime (STR) at border crossings with Zambia and Zimbabwe in 2010 and 2012, respectively. The 
STR allows small-scale consignments of originating goods, set out in bilaterally negotiated 
common lists, to be traded duty-free and without certificates of origin.
10 In 2012, the maximum 
value threshold for STR eligibility was raised from US$500 to US$1,000 and the processing fee for 
customs clearance of qualifying consignments was reduced from MK 5,000 to US$1 (approximately 
MK 700).  
3.11.  Malawi has not yet ratified the Agreement on Trade Facilitation and has not notified its 
Category A commitments to the WTO. According to the authorities, the relevant technical work has 
been completed and the ratification process is in its final stage (Section 2.3.1).  
3.1.2  Goods in transit 3.12.  Goods in transit through Malawi must have security coverage for 50% of the amount of 
customs duty at stake; this requirement may be fulfilled either through a cash deposit or a bond 
guarantee by the clearing agent. The COMESA Customs Bond Guarantee Scheme is not operational in Malawi. MRA escort through Malawi's customs territory is mandatory for consignments deemed 
                                               
7 According to the authorities, a comprehensive draf t Bill on electronic busi ness is currently under 
review. 
8 In January 2016, ten of Malawi's 28 customs stations, accounting for some 95% of processed 
declarations, were automated. According to the authorit ies' projections, migration to ASYCUDA World at these 
ten stations should be completed in 2016. 
9 Imports whose f.o.b. value exceeds MK 300,000 are subject to a physical inspection fee of MK 30,000; 
prior to 2015, the fee was MK 25,000. 
10 The maximum value threshold for eligibility was raised from US$500 to US$1,000 in 2012. WT/TPR/S/335 • Malawi 
 
- 23 - 
 
  risky, such as break bulk cargo.11 According to the authorities, transit volumes remain 
insignificant, representing some 5% of Malawi's total trade.  
3.13.  As from November 2014, the MRA is respon sible for the collection of international transit 
fees from foreign vehicles entering Malawi. The transit fee for Mozambican-registered vehicles of 
three tons and above is US$28 per 100 km; buses and three-ton trucks registered in other 
COMESA states are subject to US$8 per 100 km, whereas heavier vehicles must pay US$15 per 100 km. 
3.1.3  Customs valuation and rules of origin 
3.14.  The dutiable value of all imports is the su m of the purchase cost and all expenses incurred 
for insurance and freight up to the point of entry into Malawi.
12 In the absence of satisfactory 
evidence of freight costs, the MRA would use th at of similar consignments as a reference. 
Insurance up to the point of entry into Malawi is  not compulsory; such costs are included in the 
value for duty purposes only if the consignment has been insured.  
3.15.  In principle, the primary method of valuation is the transaction value of the imported goods; 
when necessary, recourse to alternative methods follows the hierarchy set out in the WTO 
Customs Valuation Agreement. The MRA Commissi oner General may authorize the removal of 
imports under bond only for the purpose of their transfer to another bonded warehouse; release 
for commercialization must take place after the payment of customs duties. 
3.16.  , Malawi maintains rules of origin for non-preferential (MFN) purposes, although its 
notification13 to the WTO asserts otherwise. Pursuant to the Customs and Excise Act, products are 
deemed to originate from the country where they have been wholly obtained or have undergone 
the last process of manufacture (with locally-sourced content of at least 25%).14 
3.17.  Malawi applies preferential rules of  origin under the COMESA and SADC regional 
agreements, as well as under bilateral trade agreements with Mozambique and Zimbabwe.15 
Where bilateral and plurilateral agreements exist in parallel, importers may choose which 
certificate of origin to obtain, depending on the terms they identify as more advantageous; preferential treatment is applied on the basi s of the documentation provided for customs 
clearance. 
3.18.  Malawi's bilateral trade agreements with Mozambique and Zimbabwe stipulate identical rules 
of origin, with the following criteria for goods to qualify as originating: goods must be wholly grown or produced in the partner country; the import content of goods (c.i.f. value) must be less 
than 60% of the total cost of materials used in their production; the local value added in goods 
must be at least 25% of the ex-factory cost; or there must be a change of tariff classification heading following transformation.  
3.19.  Annex I to the SADC Trade Protocol on rules of origin sets out the following basic 
requirements for goods to be regarded as originating: the product must have been wholly obtained in one of the parties
16; or the non-originating materials incorporated in the product must have 
undergone "sufficient working or processing" in accordance with the conditions set out in 
Appendix I of Annex I; or the value of all non-originating materials must not exceed 10% of the ex-works price of the good. There is no regime-wide rule of origin but Appendix I of Annex I lists 
                                               
11 The cost of customs escort is MK 30,000 per MRA officer per day/night in transit. 
12 Importers and exporters are required to keep pr oper records of all transactions, including all 
supporting documentation, for at least six years. 
13 WTO document G/RO/N/129, 4 June 2015. 
14 Product-specific requirements on locally-sourced content for certain manufactured goods are set out 
in Part II of the Customs and Excise (Tariffs) (No. 3) Order of 1 July 2013. 
15 Malawi's bilateral agreement with  the Republic of South Africa pr ovides for MFN treatment of South 
African imports into Malawi. Information on rules of  origin under the customs agreement with Botswana 
(signed in 1956 between the Government of the Federa tion of Rhodesian and Nyasaland and the Government 
of the Bechuanaland Protectorate) was not made available. 
16 Article 4 specifies the type of goods that can be regarded as being wholly produced in the member 
States.  It gives a list  of the products in this category and establis hes the criteria that a vessel must satisfy for 
it to be regarded as forming part of the territory of a member State. WT/TPR/S/335 • Malawi 
 
- 24 - 
 
  the specific criteria (mostly with respect to HS tariff headings (at various levels)) that non-
originating materials must meet for a final good to acquire originating status.17  
3.20.  For the purposes of intra-community trade, COMESA origin may be conferred on products 
shipped directly from one member State to another if the products have been wholly obtained or 
have undergone substantial transformation in the COMESA member State. In the latter case, the 
products must either: have non-COMESA material content whose c.i.f. value does not exceed 60% of the total cost of materials used in the production process; or have transformation-related value 
added of at least 35% of their ex-f actory cost; or become classifiable under a tariff heading (at HS 
six-digit level) other than the heading under which they were originally imported. Goods deemed by the COMESA Council of the Common Market to be of particular importance for the economic 
development of the member States and incorporating at least 25% local value added are also 
eligible for COMESA origin.
18 
3.1.4  Tariffs 3.21.  Pursuant to the Customs and Excise Act, the Minister of Finance may set the rates of 
customs duties and excise duties, as well as anti-d umping and surtax tariffs, by order published in 
the Government Gazette . Any suspension, drawback, rebate, remission or refund of duty is 
prescribed by way of ministerial regulations. Typically, the customs tariff is reviewed on a 
financial-year (FY) basis (1 July to 30 June) as a part of budgetary deliberations.  
Chart 3.1 Tax revenue by category, FY 2014-15 
(% of total gross tax revenue) 
Income and profits
49.6%Domestic VAT 
14.3%Local  excise duties  
3.3%Other
0.8%
VAT 16.7%
Excise duties 5.6%
Custom duties 9.7%Imports
31.9%
 
Note: Cumulative 2014-15 FY; data are up to May 2015. 
Source: Malawi Revenue Authority, Revenue Performance Report for May 2015 . 
3.22.  In FY 2014-15, customs duties and taxes (i.e. VAT and excise) on imports accounted for 
approximately 32% of total tax revenue, the larg est contribution (16.7%) being attributable to 
VAT on imports (Chart 3.1). Customs duties accounted for approximately 9.7% of tax receipts and 
2.1% of GDP.19 Between FY 2009-10 and FY 2013-14 revenue collected from duties and taxes on 
imports increased from MK 49 billion to MK 132 billion; while collections were on the rise across all 
taxes on imports, the revenue from VAT on imports registered the fastest growth (34%).  
3.1.4.1  Applied MFN tariffs 3.23.  Malawi grants most favoured nation (MFN) status to all WTO Members.
20 The FY 2015-16 
applied MFN tariff, based on the HS 2012 nomenclature, has 5,675 tariff lines at eight-digit level; 
                                               
17 For further details, see the Secretariat report in WTO document WT/REG176/4, 12 March 2007. 
18 Value added is defined as the di fference between the ex-factory cost of the finished product and the 
c.i.f. value of the materials impo rted from outside the member States which enter into its production. 
19 Malawi Revenue Authority, Revenue Performance Report For May 2015 . 
20 Imports from non-WTO members ar e subject to higher-than-MFN rates on about 61% of all tariff 
lines.  WT/TPR/S/335 • Malawi 
 
- 25 - 
 
  all lines carry ad valorem  rates. The tariff comprises eight bands: zero, 5%, 7.5%, 10%, 15%, 
20%, 25%, and 200%, against six bands (zero, 5%, 7.5%, 10%, 20%, and 25%) in FY 2009-10. Malawi applies no tariff quotas.  
Table 3.1 Structure of MFN tariffs  in Malawi, 2009-2010 and 2015-16 
 (%) 
  MFN applied tariff Final bounda 2009-10 2015-16 
1.   Bound tariff lines (% of all tariff lines) n.a. n.a. 31.6 
2. Simple average tariff rate 13.1 12.7 74.6 
 Agricultural products (WTO definition) 17.3 18.8 121.1 
 Non-agricultural products (WTO definition) 12.5 11.6 42.4 
 Agriculture, huntin g, forestry and fishing (ISIC 1) 16.3 16.7 103.9 
 Mining and quarrying (ISIC 2) 9.1 9.0 30.0 
 Manufacturing (ISIC 3) 13.0 12.4 68.8 
3.   Duty-free tariff lines (% of all tariff lines) 14.0 31.7 0.0 
4.   Simple average rate of dutiable lines only 15.3 18.5 74.6 
5.   Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
6. Non-ad valorem  tariffs (% of all tariff lines) 0.0 0.0 0.0 
7.   Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.0 0.0 0.0 
8.   Domestic tariff peaks (% of all tariff lines)b 0.0 0.1 0.0 
9.   International tariff peaks (% of all tariff lines)c 39.6 37.9 31.6 
10.  Overall standard deviation of applied rates 10.0 12.2 40.8 
11. Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
n.a. Not applicable. 
a Calculations for final bound rates are taken fro m the CTS database. The final bound schedule is 
based on HS07 nomenclature and consists of 5,141 tariff lines, of which 1,624 are bound  
 (at 8-digit tariff line level). b Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: The 2009-10 tariff schedule is based on HS07 nomenclature consisting of 5,436 tariff lines (at 8-digit 
level). 
 The 2015-16 tariff schedule is based on HS12 nomenclature consisting of 5,675 tariff lines (at 8-digit 
level). 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of Malawi and the WTO CTS 
database.  
3.24.  The simple average applied MFN tariff in FY 2015-16 was 12.7%, down from 13.1% in 
FY 2009-10 (Table 3.1). The coefficient of variation of 0.96 (up from 0.79 in 2009) indicates high 
tariff dispersion, with rates ranging from 0% to 200%; in contrast, the highest rate in the 2009-10 
tariff schedule was 25%. Agriculture remains the most tariff-protected: the average applied tariff on agricultural products (WTO definition) is 18.8% (up from 17.3% in 2009), whereas the 
corresponding average for non-agricultural products stands at 11.6% (down from 12.5% in 2009). 
Using the ISIC (Revision 3) definition, the simple average applied MFN tariffs are: 16.7% for agriculture including hunting and fishing; 12.4% for manufacturing; and 9% for mining and 
quarrying (Table 3.2).  WT/TPR/S/335 • Malawi 
 
- 26 - 
 
  Chart 3.2 Distribution of MFN appl ied tariff rates, 2009-10 and 2014-15 
(14.0) (27.8) 
(0.04)(18.4)
(0.02) (0.1) (39.5)
(31.7)
(1.0) (0.04)(29.1)
(2.3)(0.1)(37.7)
(0.1)
02004006008001,0001,2001,4001,6001,8002,0002,2002,400
Duty-free 5% 7.5% 10% 13% 15% 20% 25% 200%Number of tariff lines
Tariff rates (%)MFN 2009/2010
MFN 2014/2015
n.a.n.a.n.a.
 
n.a. Not aplicable. 
Note: Figures in parentheses indicate the share of total lines. They do not add to 100% due to missing 
rates (0.2% in 2009 and 0.02% in 2015 of all lines). 2009-10 and 2014-15 applied tariff schedules are based on HS 2007 and HS 2012 nomenclature, respectively. 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.25.  The modal rate is 25%, applying to some 38% of all tariff lines (Chart 3.2). Some 32% of 
all tariff lines are duty-free and 29% of lines carry a rate of 10%. The propor tion of duty-free lines 
in FY 2015-16 is twice as large as in FY 2009-10, reflecting the elimination of import duties on 
certain goods, such as chemicals (HS Chapters 28  and 29). The simple average rate on dutiable 
lines increased from 15.3% in FY 2009-10 to 18.5% in FY 2015-16, mainly due to rate increases 
(from 5% to 10%) in connection with the impl ementation of COMESA's Customs Union CET.  
Table 3.2 Malawi's applied MFN tariff summary, 2015-16 
 Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty-free 
lines  
(%)b 
Total 5,675 12.7 0 - 200 1.0 31.7 
HS 01-24 983 19.2 0 - 200 0.9 6.6 
HS 25-97 4,692 11.3 0 - 25 0.9 36.9 
By WTO category      
WTO agricultural products 827 18.8 0 - 200 1.0 11.1 
Animals and products thereof 113 15.8 0 - 25 0.5 3.5 
Dairy products 21 20.7 10 - 25 0.3 0.0 
Fruit, vegetables, and plants 218 21.6 0 - 25 0.3 5.5 
Coffee, tea, and cocoa and cocoa 
preparations 24 23.8 10 - 25 0.2 0.0 
Cereals and preparations 102 16.6 0 - 25 0.6 21.6 
Oilseeds, fats, oil and their products 83 12.3 0 - 25 0.7 18.1 
Sugars and confectionary 18 18.3 10 - 25 0.4 0.0 
Beverages, spirits and tobacco 101 33.3 0 - 200 1.3 1.0 
Cotton 5 2.0 0 - 10 2.0 80.0 
Other agricultural products, n.e.s. 142 11.6 0 - 25 0.8 23.9 
WTO non-agricultural products 4,848 11.6 0 - 25 0.9 35.2 
Fish and fishery products 224 16.4 0 - 25 0.5 0.4 
Minerals and metals 963 12.0 0 - 25 0.6 13.0 WT/TPR/S/335 • Malawi 
 
- 27 - 
 
   Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty-free 
lines  
(%)b 
Chemicals and photographic supplies 874 4.2 0 - 25 2.0 76.9 
Wood, pulp, paper and furniture 266 14.8 0 - 25 0.6 7.1 
Textiles 601 18.4 0 - 25 0.5 13.3 
Clothing 219 24.9 10 - 25 0.0 0.0 
Leather, rubber, footwear and travel 
goods 168 19.0 0 - 25 0.5 8.3 
Non-electric machinery 590 3.1 0 - 25 2.3 79.7 
Electric machinery 305 9.7 0 - 25 1.0 38.4 
Transport equipment 214 13.2 0 - 25 0.8 31.3 
Non-agricultural products, n.e.s. 409 14.9 0 - 25 0.8 32.8 
Petroleum 15 7.3 0 - 20 1.0 40.0 
By ISIC sectorc      
ISIC 1 - Agriculture, hunting and fishing 403 16.7 0 - 25 0.5 10.4 
ISIC 2 - Mining and quarrying 98 9.0 0 - 25 0.4 10.2 
ISIC 3 - Manufacturing 5,173 12.4 0 - 200 1.0 33.7 
By stage of processing      
First stage of processing 784 14.1 0 - 25 0.6 10.6 
Semi-processed products 1,730 9.2 0 - 25 1.1 43.8 
Fully processe d products 3,161 14.2 0 - 200 1.0 30.2 
a Coefficient of variation. 
b Share of duty-free lines in the total number of tariff lines of the product group. c International Standard Industrial  Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line). 
Note: The 2015-16 tariff schedule is based on HS12 nomenclature consisting of 5,675 tariff lines (at 8-digit 
level).  
Source: WTO Secretariat calculations, based on data provided by the authorities of Malawi. 
3.26.  In aggregate, Malawi's tariff structure displays mixed escalation: semi-processed products 
are subject to a lower average applied rate than raw materials, whereas fully processed products 
attract the highest average applied rate (Table 3.2). At a more disaggregated level, positive escalation (indicating high rates of effective protection) is prevalent in several industries, including 
food and beverages, textiles and apparel, wood pr oducts, printing and publishing, and non-metallic 
mineral products (Chart 3.3). However, the high overall protection of raw materials is clearly reflected in the prevailing pattern of escalation, which tends to discourage investment in 
processing industries because of the non-competit ive inputs. Thus, the tariff structure may not be 
conducive to diversification of economic activity through value addition at the semi-processed stage, justifying investors' arguments for duty an d tax concessions. Furthermore, the high tariff 
protection of certain finished products may act as a disincentive to improvement of the concerned 
industries' international competitiveness. WT/TPR/S/335 • Malawi 
 
- 28 - 
 
  Chart 3.3 Tariff escalation by 2-digit ISIC industry, 2015-16 
(%) 
0.05.010.015.020.025.030.0
Food, 
beverages, 
and  
tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing, and 
publishing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal 
products
Other 
manufacturingRaw materials Semi-processed Fully processed
n.a.
n.a.Average applied rate in manufacturing 
(12.4%)
 
n.a. Not applicable. 
Source: WTO Secretariat estimates, based on data provided by the authorities of Malawi. 
3.1.4.2  Tariff bindings 
3.27.  Malawi has bound 31.6% of its tariff lines at ad valorem  rates ranging from 20% to 125%; 
the overall simple average bound rate is 74.6%.21 The simple average bound rate on agricultural 
products (WTO definition) is 121.1%, whereas the rate on non-agricultural products is 42.4%. All 
agriculture tariffs are bound, mainly at a final ce iling rate of 125% (some 94% of total agriculture 
tariff lines); lower bound rates (30%-40%) apply on a few agricultural products such as milk and cream, cereals, bulbs and tubers, and cocoa an d cocoa preparations. The binding coverage of 
non-agriculture tariff lines is low (21.5% of lines); the predominant bound rate is 40%. The large 
gap between the average bound (74.6%) and applie d (12.7%) rates, and the absence of bindings 
for over 68% of all tariff lines, leave Malawi consid erable flexibility for autonomous increases of the 
applied rates. This does not ensure predictability of the tariff regime. 
3.28.  On six tariff lines, Malawi's applied rates exceed the corresponding bound levels by 
75 percentage points (Table 3.3). The authorities have indicated their intention to address these breaches in the budgetary deliberations for FY 2016-17. 
Table 3.3 Tariff lines where applied tariff rates exceed bound tariff rates, 2015-2016 
HS code Descriptions 2015-16 
applied tariff 
rates (%) Bound 
tariff 
rates (%) 
24021000 Cigars, cheroots and cigarillos containing tobacco 200 125 
24029000 Other cigars, cigarillos, cigarettes, etc., not containing tobacco 200 125 
2403 Other manufactured tobacco    
  Smoking tobacco, whether or not containing tobacco substitutes 
in any proportion    
24031100 Water pipe tobacco specified in subheading note 1 to this chapter 200 125 
24031900 Other 200 125 
24039100 Homogenized or reconstituted tobacco 200 125 
24039900 Other manufactured tobacco, n.e.s. 200 125 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of Malawi and the WTO CTS 
database. 
                                               
21 Malawi's schedule of commitments has been co nverted to the HS 2007 nomenclature (WT/LET/989). WT/TPR/S/335 • Malawi 
 
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  3.1.4.3  Tariff exemptions and concessions  
3.29.  Malawi's legislation provides for a variety of duty and tax concessions in the form of 
suspensions, rebates, remissions and refunds.22 Tariff exemptions for a range of imports, including 
raw materials, machinery, and equipment, are st ipulated in the Customs and Excise Act, the 
Investment and Export Promotion Act (Section 2.4), the Export Incentives Act, and the Export 
Processing Zones Act (Section 3.2.4). In addition, the Public Finance Management Act empowers the Ministry of Finance, Economic Planning and De velopment to grant concessions, including tariff 
rebates, on goods deemed to be of public intere st in exceptional circumstances, such as natural 
disasters.  
3.30.  In FY 2013-14, forgone tariff revenue on imports under preferential agreements was 
MK 266 million, against MK 8,476.3 million on imports under concession schemes; total revenue 
forgone (inclusive of excise duties and VAT) was MK 1,725 million and MK 8,907 million, 
respectively.  
3.31.  Malawi maintains an industrial rebate scheme for various industries (Box 3.1), with eligible 
goods, predominantly raw materials, stipulated in  the Eighth Schedule of the Customs and Excise 
Regulations. Under the scheme, duties on specified goods are automatically rebated on importation, thus sparing approved importers any reimbursement-related delays. To qualify for an 
industrial rebate, importers must: have secure facilities for storage of imports; enter into bond 
with the MRA; and comply with a minimum local value addition threshold of 20%. In FY 2010-11, in order to ensure compliance with the value addition requirement, the MRA cancelled all industrial rebate licences and invited manufacturers to reapply for the scheme. 
Box 3.1 Industries eligible for tariff rebates  
 Adhesives and other 
glues 
 Agricultural tools 
 Alcoholic beverages 
 Aluminium, hollow and 
enamel ware 
 Audio sound reception 
apparatus 
 Biodiesel 
 Blockboards, plywoods, 
sawn timber and allied 
products 
 Boots and shoes 
 Buttons 
 Candles, polishes and 
skin lotions 
manufacturing 
 Cement and allied 
products 
 Chalk 
 Chemicals 
 Clips, pins and staples 
 Clothing  Cordage and nets  
 Cycles 
 Dental or oral hygienic 
preparations 
manufacturing 
 Domestic, industrial 
and electrical 
appliances 
(transformer, cable 
and insulated electrical 
wire) 
 Edible fats and oils 
 Fertilizer 
 Fishing fly 
 Food (biscuits, meat, 
sugar confectionery, 
dairy) 
 Foam and mattresses 
 Fuel 
 Furniture 
 Hair mesh 
 Industrial fastening 
 Knitwear 
 Leather tanning 
industry  Matches  
 Medicaments and 
pharmaceuticals 
 Medical apparatus 
 Metallurgy 
 Nails, brick force and 
weld mesh 
 Non-alcoholic 
beverages, aerated 
water manufacturing 
and bottling industry 
 Packaging 
 Paints, colours, 
varnishes and ink 
 Plastic products 
 Pottery 
 Prepared unrecorded 
media for sound 
recording or similar 
recording industry 
 Primary cells and 
batteries 
 Printing, publishing and 
book binding industry 
 Reception apparatus for 
television 
 Refrigerators and 
refrigerating equipment  Roofing sheets  
 Rubber products 
 Sanitary products 
 Sacks 
 Slide fasteners 
 Soaps and soap 
substitutes 
 Sugar 
 Tarpaulin, tents and 
awnings and camping 
tools 
 Tea 
 Textiles 
 Tobacco products 
 Toothbrushes 
 Trailer 
 Travel cases and 
similar containers 
 
Source: Information compiled by the WTO Secretariat,  based on the Eighth Schedule to the Customs and 
Excise Regulations (Appendices A).  
3.32.  Malawi's system of duty and tax conce ssions based on the end use of imports remains 
complex and continues to pose administration challenges. Reducing import tariffs on such inputs to 
zero would be easier to administer, as it would eliminate unnecessary paperwork and eligibility certification delays; it would also lower Malawi-based manufacturers' transaction costs and ensure that they receive the same treatment when importin g identical goods. According to the authorities, 
tariff and tax concessions would be revisited in a comprehensive tax system review in the near 
future. 
                                               
22 The administration of duty and tax concessions is the responsibility of the MRA; in case of 
disagreement with its decisions, applicants  may appeal to the Commissioner General. WT/TPR/S/335 • Malawi 
 
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  3.1.4.4  Tariff preferences 
3.33.  Malawi grants preferences in the context of bilateral and regional trade agreements, which 
overlap in terms of trading partners and tariff concessions but may differ in regulatory stringency, notably with respect to rules of origin. In some cases, importers' choice to seek preferential 
treatment under a bilateral agreement may be motiva ted solely by the difference in the cost of 
relevant certificates of origin. Malawi grants duty-free access to all imports originating from 13 COMESA partners with which it has implemented the COMESA Free Trade Area (FTA); non-zero 
preferential rates apply to imports from other COMESA members.
23 Tariff preferences for the SADC 
distinguish between South Africa and other members due to the considerable difference in levels of development (Chart 3.4).  
Chart 3.4 Distribution of prefer ential tariff rates, FY 2015-16  
 
Note: Figures in parentheses denote the share of total lines. Figures in brackets above each bar denote the 
share of preferential imports in total imports, based on FY 2013-14 data. 
Source: WTO Secretariat calculations, based on data provided by the Malawi authorities. 
3.34.  The majority of goods originating from  SADC members, excluding South Africa, enter 
Malawi duty-free; whereas for imports from no n-FTA COMESA members most tariff lines carry 
non-zero preferential rates. Simple average rates for Malawi's preferential partners range from 
0.01% (SADC excluding South Africa) to 4.6% (Sou th Africa) (Table 3.4). In aggregate, imports 
benefitting from preferential treatment amounted  to MK 76.2 billion in FY 2013-14, representing 
about 7% of total imports.  
Table 3.4 Summary analysis of app lied MFN and preferential tariffs, 2015  
 MFN Non-FTA 
COMESAa SADC SADC – 
South Africa 
Simple 
avg. 
tariff 
(%) Range 
tariff 
(%) Simple 
avg. 
tariff 
(%) Range 
tariff 
(%) Simple 
avg. 
tariff 
(%) Range 
tariff 
(%) Simple 
avg. 
tariff 
(%) Range 
tariff 
(%) 
All products 12.7 0 - 200 3.5 0 - 25 0.0 0 - 25 4.6 0 - 25 
HS 01-24 19.2 0 - 200 4.4 0 - 25 0.0 0 - 10 6.1 0 - 25 
HS 25-97 11.3 0 - 25 3.2 0 - 25 0.0 0 - 25 4.2 0 - 25 
WTO agriculture 18.8 0 - 200 4.6 0 - 25 0.0 0 - 10 7.2 0 - 25 
                                               
23 COMESA FTA members include Burundi, Comoros, Djibouti, Egypt, Kenya, Madagascar, Malawi, 
Mauritius, Sudan, Rwanda, Seychell es, Uganda, Zambia, and Zimbabwe. CO MESA members not participating in 
the FTA include the Democratic Republic of Congo,  Eritrea, Ethiopia, South Sudan, and Swaziland. 
WT/TPR/S/335 • Malawi 
 
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   MFN Non-FTA 
COMESAa SADC SADC – 
South Africa 
Animals and products 
thereof 15.8 0 - 25 2.7 0 - 6 0.0 0.0 2.5 0 - 15 
Dairy products 20.7 10 - 25 4.1 0 - 6 0.0 0.0 5.7 0 - 15 
Fruit, vegetables and 
plants 21.6 0 - 25 5.6 0 - 25 0.0 0.0 8.9 0 - 25 
Coffee and tea 23.8 10 - 25 6.8 0 - 12 0.0 0.0 11.0 0 - 25 
Cereals and preparations 16.6 0 - 25 4.8 0 - 18 0.0 0.0 9.2 0 - 25 
Oilseeds, fats and oils and 
their products 12.3 0 - 25 2.2 0 - 12 0.0 0.0 3.7 0 - 25 
Sugars and confectionary 18.3 10 - 25 5.1 1 - 6 0.0 0.0 8.3 0 - 15 
Beverages, spirits and 
tobacco 33.3 0 - 200 7.8 0 - 14 0.0 0.0 13.7 0 - 25 
Cotton 2.0 0 - 10 0.0 0.0 0.0 0.0 2.0 0 - 10 
Other agricultural 
products n.e.s. 11.6 0 - 25 3.3 0 - 12 0.1 0 - 10 3.9 0 - 25 
WTO non-agriculture (incl. 
petroleum) 11.6 0 - 25 3.3 0 - 25 0.0 0 - 25 4.1 0 - 25 
Fish and fishery products 16.4 0 - 25 3.1 0 - 12 0.0 0.0 0.3 0 - 15 
Minerals and metals 12.0 0 - 25 2.8 0 - 13 0.0 0.0 3.1 0 - 25 
Chemicals and 
photographic supplies 4.2 0 - 25 1.2 0 - 12 0.0 0 - 5 1.5 0 - 25 
Wood, pulp, paper and 
furniture 14.8 0 - 25 3.7 0 - 12 0.1 0 - 25 5.3 0 - 25 
Textiles 18.4 0 - 25 5.1 0 - 20 0.0 0 - 5 5.8 0 - 15 
Clothing 24.9 10 - 25 6.5 0 - 12 0.0 0.0 8.1 0 - 15 
Leather, rubber, footwear 
and travel goods 19.0 0 - 25 4.1 0 - 25 0.0 0.0 9.6 0 - 25 
Non-electric machinery 3.1 0 - 25 1.2 0 - 13 0.0 0.0 1.7 0 - 15 
Electric machinery 9.7 0 - 25 5.1 0 - 13 0.0 0 - 2 4.8 0 - 15 
Transport equipment 13.2 0 - 25 2.3 0 - 13 0.0 0.0 6.8 0 - 25 
Non-agriculture articles 
n.e.s. 14.9 0 - 25 6.2 0 - 13 0.0 0.0 8.1 0 - 15 
Petroleum 7.3 0 - 20 0.9 0 - 2 1.3 0 - 20 1.3 0 - 20 
a 14 COMESA members (including Malawi) have alre ady joined the FTA and trade between them is 
duty-free. 
Source:  WTO Secretariat calculations, based on data provided by the authorities of Malawi. 
3.1.5  Other charges affecting imports 
3.35.  Malawi has generally bound "other duties and charges" (ODCs) on the tariff lines covered in 
its schedule of commitments at either zero or 20%; some bindings have also been made at 10% 
and 18.4%. ODCs are bound at zero on some 94% of agriculture tariff lines, whereas most non-agriculture lines (WTO definition) carry a ceiling ODC rate of 20%. 
3.36.  In addition to customs duties, imports ar e subject to a withholding tax, value added tax 
(VAT) and excise duties. Additional levies apply to fuels, virtually all of which are imported (Section 4.3.2.1). Levies funding the MBS apply on a range of imports (Section 3.1.8). 
3.37.  A withholding tax (3% of the c.i.f. value) applies, in principle, on all goods imported into 
Malawi; taxpayers can deduct the amount paid in withholding tax upon submission of their annual tax returns. Importers with a valid withholding ta x exemption certificate are not required to pay 
this tax. According to the MRA, this measure is aimed at improving domestic compliance with tax 
obligations; its implementation has been delayed by taxpayer identification challenges. 
3.38.  Excise duties are levied on a variety of goods, which are classifiable under 372 tariff lines 
(approximately 7% of all tariff lines); the main excisable product categories are motor vehicles, 
electronic equipment, and alcoholic beverages (T able 3.5). The majority of excise duties are ad 
valorem , with rates ranging from 5% to 250%; the tax base is the price at the time and place of WT/TPR/S/335 • Malawi 
 
- 32 - 
 
  delivery, including packaging costs and any custom s duty payable. Cigarettes attract a specific 
rate of US$15 per 1,000 sticks.24  
3.39.  During the period under review, alcoholic beverages in sachets and plastic bottles have 
attracted considerably higher rates of excise duty than those in other containers; a ban on the 
commercialization of alcohol in sachets has been in place in Malawi since 2015. According to the 
authorities, packaging that makes alcohol easily accessible and portable has been targeted as a means of fighting alcohol abuse by young peop le. During the period under review, Malawi 
introduced a 10% excise duty on plastic bags (H S 3923.21.11) and data transfers, including text 
messaging and internet traffic, with a view to expanding the tax base.  
Table 3.5 List of product grou ps subject to excise duties  
HS 2-digit level and product group descriptions No. of tariff 
lines at 8-
digit level Range of excise 
duty rates (%) 
HS 07 Edible vegetables and certain roots and tubers 1 20 
HS 15 Animal or vegetable fats and oils 1 20 
HS 22 Beverages, spirits and vinegar 44 5 - 250 
HS 24 Tobacco and manufactured tobacco substitutes 7a 90 
HS 27 Mineral fuels, mineral oils and products of their distillation 3 5 - 10 
HS 33 Essential oils and resinoids 19 10 
HS 36 Explosives; pyrotechnic pr oducts; matches; pyrophoric 
alloys; certain combustible preparations 2 35 
HS 37 Photographic or cinematographic goods 1 15 
HS 39 Plastics and articles 7 10 
HS 40 Rubber and articles 6 25 
HS 43 Fur skins and artificial fur; manufactures 3 10 
HS 48 Paper and paperboard; articles  of paper pulp, of paper or of 
paperboard 3 10 
HS 52 Cotton 1 50 
HS 65 Headgear and parts thereof 2 10 
HS 66 Umbrellas, sun umbrellas, walking sticks, seat-sticks, whips, 
riding-crops and parts 4 10 
HS 71 Natural or cultured pearls 13 50 
HS 82 Tools, implements, cutlery, spoons and forks, of base metal; 
parts thereof of base metal 4 20 
HS 84 Machinery and mechanical appliances; parts thereof 21 10 - 20 
HS 85 Electrical machinery and equipment and parts 49 20 - 100 
HS 87 Vehicles 88 5 - 110 
HS 89 Ships, boats and floating structures 4 30 - 30 
HS 90 Optical, photographic, cinematographic 37 20 
HS 93 Arms and ammunition 16 10 - 30 
HS 95 Toys, games and sports requisites 31 10 - 25 
HS 96 Miscellaneous manufactured articles 5 10 - 20 
Total 372 5 - 250 
a Including one tariff line (HS 2402.20.00) with a specific rate (US$15 per 1,000 cigarette sticks). 
Source:  Information compiled by the WTO Secretariat,  based on information provided by the authorities. 
3.40.  VAT is levied at the rate of 16.5% on th e supply of goods and services, including on their 
importation.25 The tax base for VAT on imports is the c. i.f. value plus customs and excise duties; 
for domestically-manufactured goods the tax base is the ex-factory price. Exemptions from VAT 
cater to basic necessities, including: food items; machinery and mechanical appliances; and 
medical appliances. Some supplies are zero-rated and are thus eligible for refund of VAT paid on inputs.
26 In FY 2014-15, the MRA opened a tax refund account at the RBM with a view to 
expediting the processing and settlement of tax refund claims. 
                                               
24 Between 2011 and 2014, imported cigarettes attracted excise duty at the rate of US$30 per 1,000 
sticks, whereas cigarettes with more than 70% local content were subject to US$15 per 1,000 sticks. As from 2014, both imported and locally-produced cigarettes are subject to the same excise duty rate.  
25 Suppliers of goods or services with an annual bu siness turnover estimated at or above MK 10 million 
are obliged to register for VAT. 
26 VAT-exempt or zero-rated goods and services are li sted in the First and Second Schedules of the VAT 
Act of 2005, respectively.  WT/TPR/S/335 • Malawi 
 
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  3.1.6  Import prohibitions, restrictions, and licensing 
3.41.  While most of Malawi's trade is governed by (automatic) open general import and export 
licences, the importation and/or exportation of certain goods remains subject to specific licensing requirements regardless of their country of origin (Table 3.6).
27 By and large, automatic and non-
automatic licencing procedures are maintained for security, public health and environmental 
reasons, and to promote infant industries. According to the authorities, Malawi does not maintain any licensing requirements for quantitative rest rictions purposes. The licensing system remains 
unchanged since 2010, both in its coverage and administration arrangements.  
Table 3.6 Goods subject to import licensing 
Products Procedure Rationale 
Clothing and uniforms, designed for military, naval, air force or police use  Non-automatic  Security  
Radioactive substances  Non-automatic  Environmental, 
security, and public 
health promotion  
Mist nets for the capture of wild birds Non-automatic Environmental 
promotion 
Wild animals, wild animal trophies and wild animal products (including birds and 
reptiles) and any eggs produced by such birds or reptiles Non-automatic Environmental 
promotion 
Live fish, including the eggs and spawn thereof Non-automatic Environmental 
promotion 
Compound products containing flour, meal residues and other preparations of 
any kind suitable only for use as animal foodstuffs and excluding chemical 
additions to animal foodstuffs; antibiotic growth stimulants; inert fillers; trace 
elements; synthetic animal foodstuffs; bird seed; and cat and dog foods Automatic  Public health promotion 
Eggs of poultry, whether in shell, pulp or dried forms; eggs of wild birds Automatic Public health promotion 
Live poultry, including day-old-chicks Automatic Public health promotion 
Meat products (except tinned meat, potted meats, meat soaps, meat pastes, 
edible meat fats, tallow, and all cooked or cured meats other than cooked pork, 
ham and bacon) Automatic Public health promotion 
Dieldrin Automatic Public health promotion 
Aldrin Automatic Public health promotion 
Kitchen and table salt Automatic Public health promotion 
Cane sugar Automatic Data collection and 
quality control; infant industry promotion  
Wheat flour Automatic Data collection and 
quality control; infant 
industry promotion  
Portland ordinary cement Automatic Data collection and 
quality control; infant 
industry promotion  
Fertilizers Automatic Data collection and 
quality control 
Matches Automatic Data collection and 
quality control 
Source: WTO document G/LIC/N/2/MWI/3 of 7 September 2015, and information provided by the Malawi 
authorities.  
3.42.  In addition to the import licensing system  administered by the Ministry of Industry and 
Trade, a system of trade permits remains in place for the importation and exportation of certain goods, including some agricultural commodities
28; firearms, ammunition and explosives; laundry 
soaps; cement; alcohol in sachets; and certain drugs and poisons. The importation of certain 
goods, such as poultry and meat products, requires both a trade permit and a licence. According to the authorities, trade permits are issued free of charge within seven days of the formal lodging of applications. According to a recent study, in 2014 some eight entities had authority to issue 
permits or licences for imported and exported  goods; the submission and processing of 
applications remains non-computerized and must be carried out in the capital, Lilongwe.
29  
                                               
27 WTO document G/LIC/N/3/MWI/4, 9 October 2015. 
28 Agricultural products requiring a valid trade permit  on importation include: rice; maize; maize meal; 
fresh milk; cooking oil; poultry and poultry products; live fish and animals (including wildlife); hides and skins; 
and salt. 
29 World Bank, Republic of Malawi: Diagnostic  Trade Integration Study Update  (March 2014), Report No: 
ACS7534. Viewed at: http://www.enhancedif.org/en/do cument/malawi-dtis-update-2014 . WT/TPR/S/335 • Malawi 
 
- 34 - 
 
  3.43.  Malawi maintains import bans on a number of agricultural products for SPS reasons 
(Section 3.1.9).  
3.1.7  Anti-Dumping, counterva iling, and safeguard measures 
3.44.  General provisions on anti-dumping measur es are set out in Sections 85 through 86 of the 
Customs and Excise Act (Cap. 42:01).30 Malawi has not taken any anti-dumping actions during the 
period under review; it has yet to establish an  authority competent to conduct anti-dumping 
investigations.31  
3.45.  Malawi still lacks the legal and institutio nal frameworks for the application of countervailing 
measures and safeguards. To date, it has not taken any countervailing actions nor applied any safeguards.
32 According to the authorities, consultati ons on a draft Trade Remedies Bill were 
foreseen in MoIT's work plans for FY 2015-16. 
3.1.8  Standards and technical regulations 
3.46.  The Malawi Bureau of Standards (MBS), a statutory organization established in 1972, 
remains in charge of standards development, conformity assessment and metrology services in 
Malawi. It represents Malawi in standardization activities at the regional level, including in the 
framework of COMESA, SADC, the African Organization for Standardization, and  the Intra-Africa 
Metrology System. The MBS is a member of the International Organization for Standardization 
(ISO), and an affiliated member of the International Electrotechnical Commission (IEC), the 
International Organization of Legal Metrology, and the Codex Alimentarius Commission.  
3.47.  The MBS serves, inter alia , as the national TBT enquiry point on standards and conformity 
assessment, whereas the Ministry of Industry an d Trade is Malawi's TBT notification authority.33 
Malawi has neither made any TBT notifications nor been the object of any TBT-related specific 
trade concerns since its last review.  
3.48.  In January 2014, Malawi adopted a National Quality Policy (NQP) with a view to improving 
the national quality infrastructure comprising standardization, testing, certification, metrology and 
accreditation; an implementation strategy has also  been elaborated. According to the authorities, 
the Malawi Bureau of Standards Act of 2012, which still lacks subsidiary legislation (implementing 
regulations), may require an amendment in light of the NQP. 
3.49.  Standards development is a demand-driven process that commences with the submission of 
a proposal to the MBS by any interested party and a review of its relevance to the national economy by the New Work Item Approval Committee (NWIAC). As from 2014, NWIAC is also 
responsible for determining whether the proposal should lead to the adoption of a standard or a 
technical regulation, in order to facilitate the future draft's timely circulation for public comments. The MBS formulates national standards in all fields of interest; it is a signatory to the WTO Code of 
Good Practice for the Preparation, Adoption and Application of Standards.
34 Some 43 technical 
committees, with broad stakeholder representation, consider the adequacy of international norms 
or the need for Malawi to develop its own standards. Following approval of the draft as a Malawi 
standard by the MBS Board, a general declaration is published in the Government Gazette ; a 
standard may be declared mandatory by a separately published Order of the Minister responsible for trade, which would prescribe the date for its enforcement as a technical regulation.  
3.50.  In 2015, Malawi had 1,058 national standards including 662 technical regulations; the 
corresponding figures for 2009 were 690 and 644. Regionally harmonized standards include 79 at 
COMESA level and 24 at SADC level. Information on the number of standards and technical regulations based on international standards was not made available. In principle, Malawian 
                                               
30 WTO document G/ADP/N/1/MWI/1/Corr.1, 19 February 1996. 
31 WTO document G/ADP/N/193/MWI, 19 April 2012. 
32 WTO documents G/SCM/N/202/MWI, 11 May 2015 and G/SG/N/1/MWI/1/Rev.1, 5 August 2015. 
33 WTO document G/TBT/2/Add.93, 2 August 2007. 
34 Currently, draft standards are made available fo r public comment for a period of 30 days; the 
authorities intend to increase this period to 60 days in the near future to ensure compliance with the WTO Code of Good Practice for the Preparation,  Adoption and Application of Standards. WT/TPR/S/335 • Malawi 
 
- 35 - 
 
  standards are to be reviewed every five years; the authorities acknowledge that this time frame 
has not been respected in most cases. 
3.51.  There is no independent accreditation body in Malawi.35 The MBS retains sole responsibility 
for the testing and certification, for quality assurance purposes, of goods and services subject to 
technical regulations in Malawi. To this end, it carries out periodic inspections on the domestic 
market and, under the so-called Import Quality Monitoring Scheme (IQMS), the compulsory testing of all consignments of similar goods entering Malawi.
36 In principle, the MBS issues an 
annual import certificate, thereby waiving the import quality monitoring fees for the next 12 
months, if four consecutive consignments of the same product from the same manufacturer are found to be compliant.
37 The number of import consignments inspected under the IQMS has 
registered a steady upward trend, increasing from 2,259 in 2010 to 4,537 in 2014; during the 
same period, the number of annual import certific ates granted by the MBS fluctuated somewhat, 
with a peak of 67 in 2012 and a low of 26 in 2014 (Chart 3.5).  
Chart 3.5 IQMS inspections and impo rt certificates granted, 2010-2015  
 
Source: Information provided by th e Malawi Bureau of Standards. 
3.52.  Malawi does not recognize certificates and test reports from certification bodies accredited 
overseas, including those from the SADC/COMESA re gion. According to the authorities, compulsory 
testing and certification at destination is a mean s of controlling for possible product deterioration 
during transportation to Malawi. For lack of international accreditation of its facilities, the 
certificates and test reports issued by the MBS under its Export Quality Certification Scheme are generally not accepted in foreign markets, except for some African and Asian countries. As a 
result, both imports and exports continue to face significant additional costs.  
3.53.  A recent assessment of Malawi's quality infrastructure has found scope for rebalancing 
surveillance efforts at the border and on the domestic market through a more targeted approach 
to addressing consumer safety concerns. The study has recommended, inter alia , accepting 
conformity assessment results from regional pa rtners and accredited certification bodies; 
introducing risk analysis in the IQMS; and publishing conformity assessment-related costs and time frames.
38 
                                               
35 World Bank, Republic of Malawi: Diagnostic  Trade Integration Study Update  (March 2014), Report 
No. ACS7534. Viewed at: http://www.enhancedif.org/en/d ocument/malawi-dtis-update-2014 . 
36 As at 1 June 2015, the IQMS covered some 170 product categories, including a range of foodstuffs, 
electrical goods, fertilizers, packag ing materials, mineral solvents, cement , and other construction materials.  
37 After the 12-month period, the MBS would carry ou t two inspections and, if the consignments are 
compliant, renew the annual import certificate. 
38 World Bank, Republic of Malawi: Diagnostic  Trade Integration Study Update  (March 2014), Report 
No. ACS7534. Viewed at: http://www.enhancedif.org/en/d ocument/malawi-dtis-update-2014 . 
WT/TPR/S/335 • Malawi 
 
- 36 - 
 
  3.54.  The activities of the MBS are funded by revenue from a standards development "cess levy" 
on certain imports, testing fees and the sale of st andards; there is no regular allocation from the 
state budget towards its day-to-day operations.39 The cess levy is applied on some 91 broadly 
defined product categories at the rate of 0.2% of the landed cost of imports. In addition, imports 
covered by the IQMS are subject to a fee for mandatory inspection and testing, amounting to 
0.65% of the f.o.b. value (with a minimum payable of MK 15,000 and a maximum of MK 400,000). Domestically produced goods are subject to inspection fees whenever MBS officers visit producers' 
premises; details on the mechanism for their calculation were not made available. 
3.55.  In addition to the MBS, a number of other pu blic entities are involved in inspection, testing 
and certification activities, some acting as regulatory authorities. For instance, the Censorship Board is responsible for inspection, testing and certification of all supports with audiovisual content 
for suitability for public consumption in Malawi. The MBS interacts, on an ad hoc basis, with the 
relevant public institutions when developing standards in their respective areas of competence; no overarching policy is in place to coordinate their activities. According to the authorities, most of 
these institutions have serious capacity problems primarily due to financial difficulties.  
3.56.  A technical regulation stipulates labelling requirements for pre-packaged food intended for 
sale in Malawi. Pre-packaged food products must be labelled in English or Chichewa, and clearly 
show the expiry date and ingredients. In a ddition, baby food must have calorie content 
information. 
3.1.9  Sanitary and phytosanitary requirements 3.57.  There has been little change to Malawi's SPS regime during the period under review; the 
legislation in force remains outdated and a range of capacity weaknesses are yet to be 
addressed.
40 Sanitary and phytosanitary protection in Malawi involves several entities; a National 
SPS Coordinating Committee is chaired by the Mi nistry of Agriculture, Irrigation and Water 
Development (MAIWD). The MAIWD remains in charge  of animal health and plant protection; it 
shares responsibilities for food safety with the Ministry of Health and th e MBS. The Ministry of 
Environmental Affairs (MEA) and the Pesticides Control Board regulate the importation, marketing 
and use of pesticides, including biological agents, in Malawi. Likewise, the Pharmacy, Medicines 
and Poisons Board controls the marketing and importation of all pharmaceutical products and poisons in the country.  
3.58.  Malawi maintains three SPS enquiry points: the MBS (food safety); the Department of 
Animal Health at the MAIWD (animal health), and the Department of Agricultural Research 
Services at the MAIWD (plant health). The MoIT continues to serve as Malawi's SPS notification authority; one notification was made to the WTO SPS Committee during the review period.
41 
Malawi is a member of the Codex Alimentarius, the World Organisation for Animal Health (OIE), 
and the International Plant Protection Convention (IPPC). The MBS is the national contact point for 
the Codex Alimentarius Commission; it also controls and certifies certain foodstuffs. In principle, 
Malawi's SPS measures are based on relevant IPPC, Codex, or OIE standards, guidelines, or 
recommendations; trading partners affected by an  SPS measure are informed by Malawi through 
peer-to-peer contacts. 
3.59.  Malawi maintains import prohibitions for: meat and poultry treated with growth hormones; 
grapes, apples, peaches, plums, pears, citrus, bananas, pumpkins, gourds, and strawberries from 
countries outside Africa, the European Union, and North America; Irish potato (except from 
southern African countries); flower bulbs for propagation (except from Southern Africa, the 
Netherlands, Germany, the United Kingdom, Isra el, North America, Australia, and New Zealand); 
seeds for sowing tea (except from sub-Saharan African countries); tobacco leaves (except from Africa); rubber seeds from tropical America; and passion fruit from Australia and New Zealand. 
According to the authorities, efforts are being made to transition to situational imposition of bans 
based on the phytosanitary situation in the country of origin. While a general import ban on genetically modified organisms (GMO) remains in place, importation for experimental purposes 
                                               
39 According to the authorities, the construction of a new building for the MBS would be financed by the 
state budget. 
40 According to the authorities, draft bills on a new Plant Protection Act and a new Pesticides Act have 
been tabled in Parliament. 
41 WTO document G/SPS/N/MWI/2, 14 August 2015. WT/TPR/S/335 • Malawi 
 
- 37 - 
 
  may be authorized by the MEA; during the period under review the MEA has granted 
authorizations for GMO cotton and cowpea seed. 
3.60.  A system of trade permits, often involvin g more than one competent authority, remains in 
place for a range of agricultural goods, including for the purposes of cross-border trade 
(Section 3.1.6). Import permits for live animals, animal products, plants, plant products, and 
fertilizers (valid for four weeks) are issued by the competent departments of the MAIWD. Typically, the permits specify the total quantity and value of a particular product that can be traded.
 The 
import permit and a sanitary or phytosanitary certificate issued by the exporting country are 
required when the goods reach Malawi's borders for the purposes of documentary checks, but these do not replace conformity control by the MBS (Section 3.1.8).
 Malawi lacks the 
administrative capacity to introduce a risk management scheme for the purpose of granting import 
permits. The authorization and control procedure is the same for all imports irrespective of the 
country of origin (including COMESA/SADC member States). Imports of live animals are subject to a 28-day quarantine before entering Malawi, un less they are originating from a disease-free 
country.  
3.61.  The Pesticides Control Board authorizes, keeps a register, and carries out the testing and 
certification of pesticides imported or produced in Malawi; in the absence of national technical 
regulations, its conformity assessments are base d on International Plant Protection Convention 
(IPPC) guidelines. Malawi applies the harmonized application form for pesticide registrations, developed by the Southern and East African Regulatory Committee for Harmonization (SEARCH); agrochemicals registered in at least three SEAR CH countries would normally receive automatic 
registration in Malawi.
42 The Pharmacy, Medicines and Poisons Board is responsible for registering 
and licensing medicines, poisons (except pesticides), and pharmacy businesses; it has the authority to issue compulsory licences for the manufacture of pharmaceuticals in Malawi.  
3.62.  Malawi has an optional SPS control scheme fo r the certification of exports. Nevertheless, for 
lack of internationally accredited facilities, Malawian exporters tend to opt for the conformity assessment and certification services of private companies, most of which are based abroad. 
3.1.10  Other measures 
3.63.  Malawi maintains reserve stock requirements for oil (public and private) and maize (public) 
(Section 4). According to the authorities, Malawi is not a party to any countertrade and offsetting arrangements, or agreements limiting exports to Malawi. 
3.2  Measures Directly Affecting Exports 
3.2.1  Export procedures and requirements 3.64.  The registration and customs clearance pr ocedures for exports are similar to those for 
imports (Section 3.1.1), requiring notably a declaration (Form 12), a commercial invoice, a cargo 
manifest and, where applicable, a conformity, sanitary or phytosanitary certificate, and original export permits and/or licences. In addition, a
 currency declaration (CD1) form is required for 
exports whose f.o.b. value equals or exceeds US$5,000; this threshold was revised upwards from 
US$1,000 in May 2013.43 Unless specifically authorized by the RBM to create their own CD1 forms, 
exporters must present a copy of the commercial invo ice at an authorized dealer bank in Malawi in 
order to obtain a certified hard copy of the CD1 form. While the CD1 form is provided free of 
charge, there is no mechanism in place for el ectronic exchange of information between the 
exporter, the authorized dealer bank and the MRA.  The exporter must also ensure that export 
proceeds are remitted to Malawi within 180 days of exporting.44  
                                               
42 Besides Malawi, participants in the SEARCH initiative promoting legislative and procedural 
convergence in the registration and ha ndling of agrochemical pesticides include: Angola, Botswana, Ethiopia, 
Kenya, Madagascar, Mauritius, Mozambique, Namibi a, South Africa, Tanzania, Uganda, Zambia, and 
Zimbabwe. 
43 RBM online information. Viewed at: www.rbm.mw/Home/GetContentFile?ContentID=3770 . 
44 MRA online information. Viewed at: 
http://www.mra.mw/public_notic e/index.php?pnTitle=CLEARANC E%20OF%20GOODS%20FOR%20EXPORTS . WT/TPR/S/335 • Malawi 
 
- 38 - 
 
  3.65.  Up to March 2015, exports were subject to a foreign exchange surrender requirement. 
Specifically, 20% of export proceeds had to be converted into national currency at the (highly over-valued) official exchange rate upon receipt of payment; the applicable conversion ratio was 40% prior to 2013. As from March 2015, exporters are allowed to fully retain export proceeds in 
foreign currency denominated accounts.
45 
3.66.  For exports valued at or above MK 500,000 the requisite documentation for customs 
clearance must be submitted by a professional clearing agent (customs broker). The MRA carries 
out documentary checks and may subject the goods to a physical inspection, as per the risk 
management criteria in place; approximately 7% of export shipments are physically inspected. 
3.67.  Both COMESA and SADC have developed model certificates for "originating" goods, which 
are applied in Malawi. The MRA issues and endorses  free-of-charge the certificates of origin for 
goods exported from Malawi under most preferential regimes; exporters must obtain COMESA and 
GSP certificate forms from the Malawi Confederat ion of Chambers of Commerce and Industry and, 
once completed, have them endorsed by MRA.46  
3.2.2  Export taxes, charges, and levies 
3.68.  As from August 2011, Malawi levies a tax on exports of wood in a rough state (HS 44.03, 
44.07, and 4401.10.00), assessed at 50% of the f.o.b. value; the stated purpose of this tax is to 
encourage local value addition.47 Legislative provisions for the possible application of export taxes 
on tea, cane sugar, and unprocessed tobacco also remain in place; according to the authorities none of these products has been subject to export taxes during the period under review. As with imports, the MRA levies a processing fee of MK 10,000 per export declaration.  
3.2.3  Export prohibitions, restrictions, and licensing 
3.69.  Malawi's export licensing regime covers a range of strategic goods, including a number of 
agricultural commodities. In June 2013, the number of controlled items was reduced from 25 to 10 
by way of a press release signed by the Minister of  Industry and Trade; the list presently includes: 
certain implements of war; petroleum products; certain unmanufactured gemstones; scrap metal; hides and skins; rice and rice products; maize and maize products; maize meal; raw round wood 
timber; and live poultry.
48 Exporters of agricultural commodities and unprocessed timber must 
obtain an export permit49 from the MAIWD before applying for an  export licence to the Ministry of 
Industry and Trade.50  
3.70.  During the period under review Malawi ma intained export prohibitions on certain goods, 
including maize and maize products, and raw hardwood timber. The export licences of all maize 
traders in the country were revoked in 2012; the stated purpose of this measure was to ensure food security.  
3.2.4  Export support and promotion  
3.71.  Malawi has notified to the WTO the absence of export subsidies in 2008-2012 and in 2014.
51 
The main export support legislation, notably th e Export Incentives Act of 1988 and the Export 
Processing Zones Act of 1995, has not changed duri ng the period under review. A "manufacturing 
under bond" scheme also remains in place for companies that export some, but not all, of their production.  
                                               
45 Ministry of Industry and Trade online information. Viewed at: 
http://www.moit.gov.mw/downloads/RBM%20Press%2 0Release%20Review%20of%20Retention%20Requirem
ents%20for%20Export%20Proceeds.pdf . 
46 The MCCCI charges a fee of MK 3,000 for the certificate forms. 
47 The export tax was originally announced at a rate of 100%, which was subsequently revised down to 
50% of the f.o.b. value. A 50% excise duty on timber was introduced at the same time. 
48 Ministry of Industry and Trade online information. Viewed at: 
http://moit.gov.mw/downloads/Press %20release%20Export%20Licenses.pdf . 
49 Export permits are valid for six months from the date of issue and specify the type of commodity, 
quantity, and value to be exported, as well as the country of final destination.  
50 Exporters' Guide. Viewed at: http://www.mra.mw/downloads/pdf/EXPORTERS%20GUIDE.pdf . 
51 WTO documents G/AG/N/MWI/5, 15 March 2013; and G/AG/N/MWI/6, 19 May 2015. WT/TPR/S/335 • Malawi 
 
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  3.72.  In 2010, the Malawi Export Promotion Council and the Malawi Investment Promotion Agency 
were merged into the Malawi Investment and Trade Centre (MITC), which became operational in October 2011. The MITC's mandate emanates from  those of the predecessor institutions and 
comprises: conducting investment and trade promotion in priority sectors; acting as a one-stop 
service centre that receives requests for permits and transmits them to the competent institutions; 
and processing and approving prospective investors' applications for investment certificates. Other services offered by the MITC include: counselling  of investors and exporters; product and market 
development (industry research and assessment); dissemination of investment and trade 
information; and coordination of Malawian companies' participation in international trade fairs.  
3.73.  Exporters wishing to benefit from export support under the Export Incentives Act must 
register with the MITC. Registered exporters are eligible for: an allowance of 25% on taxable 
income from export proceeds (excluding those from unmanufactured tobacco, tea, coffee and cane 
sugar); a 25% allowance on top of actually incurred international transport and insurance costs
52; 
duty drawback on imported raw materials, incl uding packaging; exemption from excise tax and 
VAT on local purchases of raw materials, incl uding packaging, for manufacturing in bonded 
facilities; and duty-free and VAT-free imports of capital equipment used in the manufacture of 
exports.  Statistics on the revenue forgone in connection with these export support measures were 
not made available. 
3.74.  Under Malawi's Export Processing Zones (EPZ) scheme, EPZ status is granted to individual 
enterprises for an initial period of five years (ren ewable for two-year periods). Exporters must first 
apply to the Ministry of Industry and Trade for an export enterprise certificate, which stipulates the 
goods that may be imported duty-free for direct use in the production of goods for export. In 
addition to providing evidence of warehousing capa bility and potential export markets, applicants 
must satisfy some of the following criteria: export  base diversification, job creation, technology 
transfer, and use of local raw materials. Qualifying enterprises must register their export 
enterprise certificate with the MRA. The EPZ scheme incentives include: exemption from paying withholding tax on dividends; duty-free impo rts of capital equipment and raw materials; 
exemption from paying excise taxes on purchases of raw materials and packaging materials made 
in Malawi; and exemption from VAT.
53 As from 2011, companies with EPZ status are no longer 
exempt from paying corporate tax and do not qualify for an additional 15% in investment allowance. According to the authorities, the EPZ scheme's main objective is to encourage non-
traditional exports. Some 13 companies, mostly foreign-owned, had EPZ status in April 2015.
54  
3.75.  An Export Development Fund (EDF), create d by the RBM while work on a feasibility study 
for a national development bank was still under way, launched operations in Malawi in October 
2012. The EDF received an initial endowment of MK  1.5 billion, supplemented by an additional 
MK 1.6 billion in 2014; the RBM has also helped it secure a MK 50 billion line of credit from PTA Bank, a COMESA institution, to be used for short-term (up to two months) loans to exporters. 
To date, the EDF has been predominantly active in the provision of trade finance (MK 7.5 billion 
committed as of August 2015) and, to a lesser extent, loan guarantees.
55 The EDF is also expected 
to add long-term project finance to its portfolio, but has experienced delays in obtaining the necessary funding.
56 The Fund's mandate is to support exporters of goods (except tobacco) and 
services; no nationality or ownership restrictions apply. According to the authorities, demand for 
EDF support has been quite significant and the Fu nd, with the assistance of the RBM, has been 
seeking lines of credit from partner financial institutions.  
                                               
52 The income tax allowance was set at 15% in FY 2010-11 and increased to 25% in FY 2012-13. The 
international transport allowance was set at 15% in between June 2011 and June 2012; the actual expenditure 
on international transport remained an allowable deduction.  
53 A schedule of goods not eligible for duty/tax exemptions is contained in Section 18 of the EPZ Act. 
54 U.S. Department of St ate, Bureau of Economic  and Business Affairs, Investment Climate Statement – 
Malawi  (2015). Viewed at: http://www.state.gov/e/eb/rls/othr/ics/2015/241645.htm . 
55 Two projects (rice and timber production) received  loan guarantees in 2013. As a general rule, the 
EDF would guarantee up to 70% of a loan.  
56 The EDF does not receive governme nt funding on a regular basis. WT/TPR/S/335 • Malawi 
 
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  3.3  Measures Affecting Production and Trade 
3.3.1  Incentives 3.76.  Besides various duty concessions (Section 3.1.4.2), Malawi offers a wide range of fiscal 
incentives under the Taxation Act, the Invest ment Promotion Act (Section 2.4), the Export 
Incentives Act, and the Export Processing Zones Act (Section 3.2.4). Fiscal incentives, typically in 
the form of tax holidays, reduced tax rates, and investment allowances may be granted by industry, type of activity, or geographical location, as well as on a company-specific basis.
57 
Manufacturing projects based in Malawi are eligible for an investment allowance, providing for a 
tax deduction equal to 100% of investments in new plant and machinery, and 40% of investments in used plant and machinery. A Farm Inputs Subs idy Programme (FISP) remains in place in Malawi 
(Section 4.2). In principle, tax incentives apply equally to domestic and foreign-owned businesses. 
The range of socio-economic objectives targeted by these measures includes: stimulating local or 
foreign investment in particular economic sectors or geographical areas; promoting exports; generating employment; and supporting SMEs.  
3.77.  During the period under review, agro-pro cessing and electricity generation, transmission 
and distribution have been designated as prio rity industries and have been granted fiscal 
incentives. Upon successful application for priority industry status to the Commissioner General of 
the MRA, investors would benefit from either a tax holiday of up to 10 years or a reduced 
corporate tax rate (15%) throughout the lifespan of  the project. Eligibility requirements include 
sector-specific minimum investment thresholds and compliance with agreed performance benchmarks on, inter alia , production for export, value addition, employment creation and 
generation of foreign exchange for the economy.  
3.3.2  Competition policy and price controls 3.3.2.1  Competition policy 
3.78.  The Competition and Fair Trading Act (CFTA), enacted in 1998, entered into force in 2000. 
The objectives of the Act are to: encourage comp etition in the economy, by prohibiting anti-
competitive business practices; regulate and monitor monopolies and concentrations of economic 
power; protect consumer welfare; make the production and distribution of goods and services 
more efficient; and ensure the best possible fair market conditions. Application of the Act commenced in 2005, with the creation of a Competition and Fair Trading Commission (CFTC) and the subsequent appointment of commissioners. The CFTC operated with interim secretarial support 
from the MoIT until 2012 when an independent Secretariat was established. 
3.79.  According to the authorities, prior to 2012 the CFTC's enforcement activities were 
concentrated mostly in the area of merger control (Table 3.7). The establishment of the 
independent Secretariat boosted enforcement an d advocacy capacity, enabling the CFTC to 
investigate anti-competitive and unfair business practices, as well as to undertake sensitization activities.
58  
3.80.  The work of the CFTC complements that  of the COMESA Competition Commission (CCC), 
which is also based in Malawi. The CCC has authority to address anti-competitive practices that concern at least two COMESA member States, whereas national issues are dealt with by the competent national institutions.
59 The COMESA Competition Regulations prohibit certain anti-
competitive business practices and any abuse (by one or more firms) of a dominant position within 
the Common Market or in a substantial part of it, in so far as trade between member States is affected. Likewise, in the control of mergers and acquisitions with a regional dimension the CFTC 
submits its findings to the CCC for aggregation and final decision. 
                                               
57 Malawi abolished a training allowance in 2011. 
58 In 2016, the CFTC had nine technical and eight support staff members. The CFTC has drafted revised 
Competition and Fair Trading Regulations, which are awaiting publication in the Government Gazette ; a review 
of the CFTA is also envisaged in Mala wi's Public Sector Reform Programme. 
59 The competition authority of a COMESA member State may ask the CCC to refer a regional case to it, 
if there is sufficient evidence that the national market would be disproportionally more affected. WT/TPR/S/335 • Malawi 
 
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  Table 3.7 Competition and Fair Trading Act enforcement, 2010-15  
 2010  2011  2012  2013  2014 2015  
Mergers and acquisitions 4 4 2 6 7a 13b 
Abuse of market dominance 0 0 0 1 1 0 
Restrictive business practices 0 1 2 1 4 3 
Cartels 0 0 0 3 1 1 
Unfair trade practices 0 0 0 3 8 24 
Market studies 0 1c 0 0 1d 0 
a Including five cases reviewed under the COMESA Competition Regulations. 
b Including seven cases reviewed under the COMESA Competition Regulations. c An assessment of competition in Malawi's tobacco industry commissioned by UNCTAD. d An assessment of competition in the transport sector (Malawi, Zambia and Tanzania) commissioned 
by the SADC Secretariat. 
Source: Competition and Fair Trading Commission of Malawi. 
3.81.  Malawi's competition regime follows the effects doctrine common to many jurisdictions; 
export-oriented anti-competitive practices (including cartels) that have no effect on the domestic 
market are excluded from the application of the CFTA, although those having an effect within 
COMESA would be addressed under the COMESA Competition Regulations. Other exemptions from the application of the CFTA include: activities undertaken in relation to the protection of 
employees' rights, such as collective bargaining arrangements aimed at advancing employment 
terms and conditions; activities of professional associations relating to the development and enforcement of professional standards; and activi ties relating to the protection of intellectual 
property rights.
60 The CFTA provides for a rule of reason approach (i.e. effects-based assessment) 
in the consideration of mergers and acquisitions, and anti-competitive practices, whereas a per se  
prohibition is stipulated for cartel-type horizontal agreements. 
3.82.  The mandate of the CFTC includes: undertaking investigations to determine whether any 
enterprise is involved in anti-competitive behavi our; conducting assessments of proposed mergers 
and acquisitions and their expected impact; and taking action deemed necessary to prevent or 
redress the impact of a merger or acquisition and the abuse of a dominant position by an 
enterprise. Under the Act, the CFTC is to be independent in its procedures and decisions; it can 
initiate investigations ex officio  or upon receiving a complaint.61  
3.83.  The CFTC investigates cases relating to anti-competitive and unfair trade practices, and 
decides whether to bring them to the attention of th e Office of the Director of Public Prosecution. 
Any infringement of the provisions of the CFTA is deemed a criminal offence, with sanctions to be determined by a court of law.
62 Anyone who suffers injury, loss or harm as a result of an 
infringement of the provisions of the Act can initiate court proceedings against the offender, either 
directly or on the basis of a decision by the CFTC.63  
3.84.  Malawi's merger control regime is non-suspensory; parties may notify a merger at any 
stage, but are advised to do so as soon as possible to avoid the possibility of being required ex 
post to unwind the transaction. Under the CFTA, any merger transaction that results in the change 
of controlling interest in a firm is subject to notification; the notification requirement is not conditional on any market share or turnover thresholds.
64 The CFTC must investigate and issue a 
decision within 45 days of receiving a merger notification. The CFTC has not blocked any of the 
mergers it has investigated to date; it has granted several conditional approvals, with merging parties' commitments determined through a negotiation process. 
                                               
60 Additional exemptions from the CFTA's applicatio n may be adopted by way of a ministerial notice 
published in the Government Gazette .  
61 The CFTC has entered into memoranda of understan ding with sectoral regu lators, with a view to 
fostering cooperation and coordina tion in enforcement activities. 
62 According to the authorities, the CFTC does not have a leniency or immunity programme for whistle-
blowers, as it does not have the authority to directly impose sanctions for infringemen t of the provisions of the 
CFTA. 
63 According to the authorities, the first case taken directly to the courts is  currently being heard. 
64 The CFTC collects filing fees at  the rate of 0.05% of the combined  turnover or assets, whichever is 
higher, of the merging parties. WT/TPR/S/335 • Malawi 
 
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  3.3.2.2  Price controls 
3.85.  Malawi maintains price controls on the domestic output of key agricultural commodities; the 
MAIWD sets minimum farm-gate prices, which are mostly enforced through the Agricultural Development and Marketing Corporation (Section 4.2).  
3.86.  Electricity tariffs are regulated by the Energy Pricing Committee of the Malawi Energy 
Regulatory Authority (MERA) (Section 4.3.2.2). MERA also administers an automatic pricing mechanism for fuels, which links pump prices to procurement costs and exchange rate movements with a trigger band of 5% (Section 4.3.2.1). On a number of occasions, the Government has 
suspended the principles of automatic pricing, opting instead to manage fuel price increases in a 
way that minimizes their impact on the Malawian economy.  
3.87.  The tariffs of the five water boards that provide water in Malawi are approved by the 
Minister of Water Development and Irrigation.  
3.3.3  State trading, state-owne d enterprises, and privatization 
3.88.  Malawi has notified the WTO that it does not have any state trading enterprises.
65 Estimates 
of the contribution of state-owned enterprises to GDP and employment during the period under 
review were not made available.  
3.89.  State involvement remains prevalent in ma ny sectors of the Malawian economy and, in 
some cases, continues to crowd out private entr epreneurs. In 2015, Malawi had over 60 state-
owned enterprises (SOEs) that were involved in various industries, including agriculture, housing, 
finance, education, public utilities, healthcare, and aviation (Table 3.8). In principle, full or partial 
state funding is reserved for SOEs that perfor m certain public functions; nevertheless, the 
Government has intervened on occasions to bail out commercially-run but loss-making SOEs. 
Besides soft budget constraints, some SOEs have  been benefitting from tax concessions on the 
acquisition of motor vehicles, equipment and machinery, as well as from preferential access to land. In some instances, public works contracts have been awarded to SOEs without a competitive process.
66 
Table 3.8 Selected state-owned enterprises, 2010-15  
Enterprise State participation Area(s) of activity 2010 2015 
Agricultural Development and Marketing 
Corporation (ADMARC) 100% 100% Agricultural marketing 
National Food Reserve Agency 100% 100% Management of Malawi's strategic 
grain reserve 
Airport Development Limited 100% 100%  Maintenance and development of 
airport infrastructure 
Malawi College of Accountancy 100% 100% Accountancy training 
Malawi Post Corporation 100% 100% Communication services 
Electricity Supply Commission of Malawi 
(ESCOM) 100% 100% Electricity 
generation/transmission/distribution 
Blantyre Water Board 100% 100% Water supply 
Central Region Water Board 100% 100% Water supply 
Lilongwe Water Board 100% 100% Water supply 
Southern Region Water Board 100% 100% Water supply 
Northern Region Water Board 100% 100% Water supply and disposal of water-
borne sanitation 
Malawian Airlines 100% 51% Passenger and cargo air transport 
Malawi Housing Corporation 100% 100% Construction and management of 
housing estates 
Malawi Rural Finance Company Limited 100% 100% Financial services (commerce and 
agricultural sectors) 
Malawi Savings Bank 75% 0% Financial services 
Indebank Malawi Limited 67% 67% Financial services 
Smallholder Farmers Fertiliser Revolving 100% 100% Procurement an d distribution of 
                                               
65 WTO document G/STR/N/9/MWI, 7 July 2015. 
66 U.S. Department of St ate, Bureau of Economic  and Business Affairs, Investment Climate Statement – 
Malawi  (2015). Viewed at: http://www.state.gov/e/eb/rls/othr/ics/2015/241645.htm .  WT/TPR/S/335 • Malawi 
 
- 43 - 
 
  Enterprise State participation Area(s) of activity 2010 2015 
Fund of Malawi agricultural inputs 
Tobacco Control Commission 100% 100% Regulation of the production, 
manufacture and marketing of 
tobacco 
National Oil Company of Malawi (NOCMA) 100%  100% Management of Malawi's strategic 
fuel reserve 
Source: Information compiled by the WTO Secretariat. 
3.90.  During the period under review, Malawi revisited its privatization programme with a view to 
prioritizing public-private partnerships (PPPs) as a way of attracting strategic investors. A Public-Private Partnership Act and a Public-Private Partnership Policy Framework were adopted in 2010 
and 2011, respectively. Identified priority sectors for PPPs include: energy, telecommunications 
and information technology, transport, tourism, public utilities, healthcare and education. The institutional framework was also modified, with a Public-Private Partnership Commission replacing 
the former Privatization Commission in 2013. Details about the revised privatization programme, 
including on any foreign ownership restrictions or preferential treatment of Malawian nationals, were not made available. 
3.91.  Progress on privatization has apparently been slow, with two divestures completed in 2010-
15. In 2013, a 49% stake in the national airline wa s sold to Ethiopian Airlines; the acquirer took 
over the management of the company, which was rebranded from Air Malawi to Malawian Airlines. In July 2015, the Government of Malawi also dive sted its 75% equity stake in the Malawi Savings 
Bank for some MK 9.5 billion (US$21.1 million).  
3.3.4  Government procurement 3.92.  The legal and institutional framework governing public procurement in Malawi has not 
changed significantly since 2010. The Public Proc urement Act of 2003 applies to purchases by any 
ministry, department or other division of the government; commercially-oriented SOEs and statutory bodies; and any local authority.
67 Procurement is the responsibility of Internal 
Procurement Committees (IPCs), to be established in all procuring entities. The Office of the 
Director of Public Procurement (ODPP), established in 2004, regulates, monitors, and oversees  
procurement proceedings conducted by procuring entities; it does not conduct procurement on 
behalf of any procuring entities.68  
3.93.  The admissible procurement methods, and any requisite approvals, depend on pre-defined 
thresholds for the contract's value. According to th e authorities, the thresholds in force at the time 
of Malawi's previous review69 have been revised twice; details on the currently applied ones were 
not made available. In principle, the default me thod is open tendering; procurement and award 
notices for all contracts valued above MK 50 million must be published in newspapers of major circulation. In addition, procuring entities are to provide ex post  feedback to all bidders on their 
performance in the procurement process.  
3.94.  The ODPP continues to require all procuring entities to submit their award decisions for a 
"no objection" review prior to issuing an official award notice, whenever the contract exceeds certain value thresholds. This prior review process has been instituted on an ad interim  basis, due 
to the lack of qualified procurement personnel i n  m o s t  I P C s ,  w i t h  a  v i e w  t o  e n s u r i n g  t h e  
procurement legislation's uniform application and rectifying any misinterpretations or malpractices at the IPC level. Statistics on procurement contracts awarded during the period under review were 
not made available. 
3.95.  Malawi's legislation provides for the granti ng of the following preference margins: 20% of 
the offer price for the supply of goods with at least 30% local content (labour, raw materials and 
components); and 10% of the offer price for public works for bidders with at least 50% local 
ownership. 
                                               
67 Government projects that are donor funded  follow the donor's procurement guidelines. 
68 Upon request by a procuring entity and following an  assessment of the specific situation that warrants 
it, the ODPP may grant a waiver from the application of the Public Procurement Act. 
69 WTO document WT/TPR/S/231/Rev.1 of 14 July 2010. WT/TPR/S/335 • Malawi 
 
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  3.96.  Malawi's legislation stipulates a three-tier appeals mechanism: complaints must first be 
lodged with the procuring entity within ten days  of the award decision; then appealed to the 
review committee of the ODPP in the second instan ce; and finally to the High Court in the third 
instance. Although it has no enforcement powers, the ODPP may recommend that punitive action 
be taken by controlling officers (line ministry executives) against government officials and bidders 
found to be violating the provisions of the Act (e.g. bid rigging or failure to disclose interest in the 
proceeding).70 Violations by government officials are punishable by a fine of MK 50,000 and 
imprisonment for up to two years, whereas non-compliant bidders would be barred from supplying 
any public institution for a period of up to two years. According to the authorities, a review of sanctions is ongoing, as inflation has eroded the deterrent effect of the maximum fine threshold; 
the current Public Procurement Act has also been deemed to provide for very few sanctions.  
3.3.5  Intellectual property rights 
3.97.  There have been no changes to the intellect ual property regime in Malawi during the period 
under review. The major intellectual property laws are the Patents Act (1986), the Trade Marks Act 
of 1958, the Registered Designs Act of 1985, the Trade Descriptions Act of 1987, and the 
Copyright Act (2001).
71  
3.98.  The authorities are aware of the need to review the current outdated laws, to take account 
of technological change and align them with intern ational treaties. This has prompted the drafting 
of a new IP policy, with the aim of stimulating the generation, protection, and commercialization of intellectual property rights as an economic stimulant for wealth creation; encouraging institutions to adopt their own IP policies; and integratin g the IP system into government development 
strategies. According to the authorities, the new policy is in the Office of the President and Cabinet 
for review and approval. In addition, draft Tradem arks and Copyright Bills are being reviewed by 
the Ministry of Justice. 
3.99.  Implementation of the IP policy faces a number of challenges, including lack of human 
resources and finance; inadequate infrastructure for managing and administering IPRs; absence of IPR-related training and educational institutions and services; and lack of awareness among major 
stakeholders. According to the authorities, the most frequent intellectual property infringements 
relate to trademarks (medicines and clothing) and copyrights. Statistics on the various types of protection sought and granted, and on enforcement actions taken during the review period were not made available.  
3.100.  At a symposium on least developed countries' needs assessment held in Geneva on 19-21 
October 2011 by the WTO, the representative of Malawi identified a number of priority needs for 
technical and financial cooperation relevant to the TRIPS Agreement.
72  
3.101.  An effective response to these diverse needs will require resources and expertise from a 
range of sources. The communication of these priority needs to the TRIPS Council would facilitate further coordination of efforts to address these needs, and a more effective response by potential 
multilateral and bilateral partners. 
                                               
70 The ODPP may also support litigation against offenders by testifying against them in court. 
71 For details see WTO document WT/TPR/S/96, 9 January 2002. 
72 Malawi's needs include: (i) support for coordinati on of IP policy development; (ii) training for 
policymakers on IPR concepts, international IPR co nventions and best practices from other countries; 
(iii) development of a multi-disciplinary IP policy teaching, research and analysis capacity in the academic community; (iv) improving business education and awaren ess about IP for SMEs; (v) development of a Patent 
Information Service to support innovation and technology transfer; (vi) developing an optimal business model for intellectual property administration in Malawi by benchmarking against international best practice; 
(vii) enhanced human resources at the IP office; (viii) computerization of registries  for trademarks, industrial 
designs, and patents; (ix) improving consumer education and pub lic awareness about IPRs; (x) training and 
qualification of private and public se ctor attorneys; (xi) training of en forcement agencies and rights holder 
organizations in IPR concepts, national legislation and enforcement strategies; (xii ) provision of access to 
networked, computerized national intellectual prop erty registries for the Malawi Customs and Excise 
Department and the Malawi Bureau of  Standards; and (xiii) enhancing co-o peration with foreign enforcement 
agencies on combating counterfeitin g and piracy. List available at: 
https://www.wto.org/engl ish/tratop_e/trips_e/zakeyo_chat ima_malawi_presentation_e.pdf. WT/TPR/S/335 • Malawi 
 
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  3.102.  One objective of Malawi's National Medicine Policy is to ensure universal access to essential 
medicines. This objective is supported by an interpretation of the Patent Act by Malawi's authorities that maintains that parallel importation of patented medicines is permissible. A further, prospective avenue for access to medicines is potentially available under the special export 
licensing system that has been developed by the WTO to fulfil the mandate of the Doha 
Declaration on the TRIPS Agreement and Public Health. Malawi has not yet accepted the Protocol Amending the TRIPS Agreement that was submitte d to WTO Members for acceptance by means of 
a General Council Decision unanimously adopte d by the WTO membership on 6 December 2005 
(WT/L/641). By completing its domestic procedures to accept the Protocol, Malawi could contribute to securing the entry into force of the proposed TRIPS amendment. In turn, this would help ensure 
a secure legal pathway for access to affordable medicines as a permanent part of the TRIPS 
Agreement, strengthening a new public health fl exibility for the benefit of those Members most 
reliant on trade to meet their needs in the pharmaceutical sector, such as Malawi.
73 Acceptance of 
this Protocol is not expected to require any domestic legislation on the part of Malawi, given that it 
is more likely to be an importer under the system. 
3.103.  Intellectual property issues are the resp onsibility of the Registrar General under the 
Ministry of Justice (patents, trademarks and desi gns); the Copyright Society of Malawi (COSOMA) 
under the Ministry of Culture (copyright); and the Ministry of Trade and Industry (trade-related 
aspects of IPR). The new IP policy proposes to consolidate IPR matters through the creation of the Malawi Intellectual Property Office (MIPO). MIPO is envisaged as a self-financing parastatal organization, with income generated from registrati on fees for patents, copyrights and trademarks.  
3.104.  Enforcement institutions include the Ministry of Justice, the Ministry of Culture, the Ministry 
of Trade and Industry, Malawi Police, the Malawi Revenue Authority, and the Malawi Bureau of Standards. Under the new IP policy, these institutions would be required to set standards on IP 
service delivery; inspect and ensure the delivery of original and genuine material; advise 
institutions and stakeholders on IP issues; medi ate and arbitrate IP-related disputes; and prevent 
smuggling of counterfeit products. At present, right holders have sole responsibility to monitor the 
market, apply to the authorities for interception of counterfeit goods, and initiate infringement 
proceedings; the mechanism for interfacing with enforcement institutions is not computerized.  
3.105.  Malawi is a member of WIPO and a party to the Paris and Berne Conventions, among 
others. It is also a member of the African Regional Intellectual Property Organization (ARIPO) and 
party to the Harare Protocol on Patents and Industrial Designs and the Banjul Protocol on 
Trademarks. Malawi is in the process of joining the Madrid Protocol; a draft bill has been prepared to that effect.  
 
                                               
73 See Aide-Mémoire on the Expected Benefits of the Paragraph 6 System of Special Licences for Export 
of Medicines, WT/GC/W/696 WT/TPR/S/335 • Malawi 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Introduction 4.1.  Agriculture continues to play a central role in the Malawi economy, currently contributing 
around 30% of GDP and 75% of total export earnin gs. However, sectoral GDP shares have slowly 
shifted away from agriculture over time, while mining and various service subsectors have 
increased their contribution (Table 1.2). Tobacco remains the dominant commodity exported, accounting for at least 40% of total exports, follow ed by sugar, tea, and raw cotton. Maize is the 
country's main staple. Food security is the main policy objective for the agriculture sector, and a 
programme that provides subsidized fertilizer to maize farmers is the main instrument used to achieve this. 
4.2.  The mining sector contributes about 5% to GDP. A significant shortfall in electricity supply 
remains a major growth constraint. Less than 10% of  Malawi's population has access to electricity. 
Electricity and fuel prices remain under government control whilst the bulk of fuel is imported. The manufacturing sector is relatively small, with agro-processing and textiles being the dominant 
activities. 
4.3.  Services constitute about half of GDP. Malawi has made only a few commitments under the 
GATS. The services balance has traditionally posted a deficit. Malawi undertook a number of 
reforms to the financial services sector during the period under review aiming to increase financial 
inclusion. The telecom sector has grown strongly since the last review, mainly driven by mobile subscriptions. Road transport remains the domina nt mode of transport, and transport prices 
remain high. As a landlocked country, Malawi depends strongly on the efficiency of transit 
corridors and ports in neighbouring countries. Privatization and partial liberalization of air transport 
services have led to increased competition and lower prices on regional routes. The tourism industry is still in its infancy, but offers great potential for development both as a foreign exchange 
earner and for the provision of employment. 
4.2  Agriculture 4.2.1  Main features and policy objectives 
4.4.  The agriculture sector remains the backbone  of Malawi's economy. It employs about 80% of 
the total workforce, contributes roughly 75% to foreign exchange earnings, and represents approximately 30% of GDP. Maize is the principal subsistence crop; the staple food of most Malawians ( nsima ) is made from ground maize. Other food crops of growing importance include 
cassava, rice, sorghum, and millet (Table 4.1). The main export crops are tobacco, sugar, tea, and 
cotton. The agricultural sector posted positive growth rates in most years between 2010 and 2015, of up to 6.7%, but experienced a decline of 2.3% in 2012. As a result of the overall decrease in 
food production in 2015 caused by drought and fl oods, a sharp deterioration in food security 
conditions occurred in 2015-16. 
Table 4.1 Production of selected  agricultural products, 2008-14 
(metric tonnes) 
 2008-09 2009-10  2010-11  2011-12  2012-13 2013-14  
All maize  3,582,341  3,233,165  3,895,181  3,623,924  2,919,720  ..  
Rice  135,988  110,106  117,733  110,405  109,525  .. 
Groundnuts  275,176  277,530  325,215  368,081  361,332  ..  
Tobacco  208,154,580  172,972,943  174,927,709  72,550,992  117,796,671  .. 
of which: burley   195,932,803  162,281,456  160,368,272  63,403,283  105,081,896  ..  
Cotton  72,572  28,856  52,456  231,188  158,104  .. 
Sugar 303,773 294,952  282,445  286,475  299,494 289,013  
Wheat  2,562  2,341  1,850  1,901  1,461  .. 
Sorghum  60,025  53,932  73,330  68,111  86,182  ..  
Millet  26,866  24,495  32,911  33,198  39,262  .. 
Pulses  490,623  459,267  531,967  581,373  587,083  ..  
Cashew  165  456  479  493  98  .. 
Macadamia  6,755  110  2,150  4,133  24  ..  
Sesame  679  544  798  804  831  .. 
Sunflower  8,087  9,175  10,621  12,429  13,760  ..  
Coffee  4,174  1,007,293  4,015  5,699  5,649  .. 
Paprika  2,384  395,542  1,397  1,610  1,472  ..  WT/TPR/S/335 • Malawi 
 
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   2008-09 2009-10  2010-11  2011-12  2012-13 2013-14  
Chillies  1,338  1,728  1,966  1,858  2,549  .. 
Cassava  3,823,236  3,948,108  4,316,373  4,648,298  4,751,923  ..  
S. potatoes  2,692,264  2,838,036  3,223,263  3,572,337  2,798,793  .. 
I. potatoes  794,655  775,262  928,941  963,618  474,145  ..  
.. Not available. 
Source: Information provided by the authorities of Malawi. 
4.5.  The Government's overall policy objectives for the agriculture sector are to achieve and 
maintain food security, increase sectoral growth rate, and diversify agricultural exports. Policies for 
the sector are formulated by the Ministry of Agriculture, Irrigation and Water Development 
(MAIWD). 
4.6.  Malawi's agriculture sector suffers from se vere land pressure because of its fast-growing 
population, loss of soil fertility, and various pests and diseases. Out of Malawi's total land area, 
some 25% is arable, about 20% suitable for me adows and pastures, and 50% covered by forest 
and woodland. Foreigners are not allowed to own land, but may lease it. The majority of farmers in 
Malawi have access to very little land. The average cultivable landholding in Malawi is just 0.87 ha 
or barely 0.2 ha per capita.1 Overall, 58% of the farmers cultivate on less than 1 ha while 11% are 
nearly landless. Only 13% of households cultivate on more than 2 ha and the majority of these are 
in the north where population density is lower compared with central and southern Malawi. 
4.7.  Overall agricultural productivity remains low. In particular, the sector faces a number of 
challenges including overdependence on rain-fed farming and a low level of irrigation development; low absorption of improved techno logies; poor support infrastructure; inadequate 
markets; weak private sector participation; and lack of investment in mechanization. The strong 
reliance on a few agricultural commodities renders Malawi particularly vulnerable to external shocks such as volatile export prices and drought.  
4.8.  In all years since its last review in 2009, Malawi has been an agricultural net exporter, 
although depending on harvests, in some years it may rely on importing essential foods, mostly cereals, to guarantee food security. In 2014, agricultural exports amounted to US$965 million, up from US$778 million in 2008. Tobacco remains the dominant commodity exported, accounting for 
at least 40% of total exports by value, followed by  sugar, tea, and raw cotton. Agricultural imports 
amounted to US$257 million in 2014, down from US$269 million in 2008. 
4.2.2  Policy measures 
4.9.  Measures to achieve Malawi's policy objectives include tariffs, input subsidies, minimum 
prices, strategic reserves, and export prohibitions.  
4.10.  The Agriculture Sector Wide Approach programme (ASWAp) is Malawi's umbrella 
programme for prioritized investments in agricultur e, aimed at increasing production, productivity, 
and diversification of production.
2 Target crops under the ASWAp include beans, groundnuts, 
soybeans, pigeon peas, and horticultural products. Specific programmes include the Farm Input Subsidy Programme for maize farmers (FISP, described below); the Greenbelt Initiative (aimed at 
increasing production and productivity through irrigation); the Agricultural Development 
Programme-Support Programme (aimed at increasing productivity of rain-fed maize cropping systems); the Dairy Development Project; the Irrigation, Rural Livelihoods and Agricultural 
Development Project (IRLADP); and the Farm Income Diversification Project (FIDP).  
4.11.  With a view to increasing agricultural pr oductivity and contributing to food security, the 
Farm Input Subsidy Programme (FISP) was instituted in 2005. It provides maize fertilizers, maize 
and legume seeds, and maize storage pesticides to smallholder farmers at subsidized prices. Under 
the programme, fertilizer distribution has varied between 150,000 and 170,000 tonnes per year, while annual seed distribution is of about 8,000 to nnes. Beneficiary identification and distribution 
of coupons takes place at community level. In 2013-14 the programme targeted a total of 
1,500,000 beneficiaries. These gains, however, have come at a very high cost to the Government's 
budget with the FISP accounting for between 60% and 72% of total spending on agriculture in 
                                               
1 World Bank (2007). 
2 Ministry of Agriculture and Food Security (2011). WT/TPR/S/335 • Malawi 
 
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  recent years. Apart from sustainability issues, the expenditure on the FISP has also crowded out 
investment on irrigation, research, and extension services. 
4.12.  The Agricultural Development and Marketing Corporation (ADMARC), a commercial 
parastatal, essentially functions as the Government's arm for implementing its policies for maize 
and other agricultural products and is a service provider to smallholder farmers in remote areas. 
ADMARC's operations include domestic and international trade in agricultural commodities produced by smallholders (maize, groundnuts, rice, beans, soybeans, sesame, grams, pigeon 
peas, cow peas, and sunflower); storage; agri-processing (rice, groundnuts, and grains); and sale 
of farm inputs (fertilizer and pesticides). 
4.13.  The Government continues to use centrally determined minimum producer prices. Each 
year, the MAIWD announces minimum farm-gate pr ices for around 23 different commodities 
including maize, groundnuts, rice, millet, beans,  soybeans, sunflower, and various other minor 
products excluding tobacco, which are meant to be enforced by the police and ADMARC. In 
practice, however, ADMARC does not have the financ ial strength or liquidity to buy all of the crops 
at the set price.  
4.14.  The state-owned National Food Reserve Agency, established in 1999, has the task of 
managing Malawi's strategic grain reserve. Its silos have a storage capacity of 240,000 tonnes. 
The Government is also promoting the use of small storage facilities at the household and 
community levels. 
4.15.  Malawi maintains a liberal import regime on agricultural inputs. All types of fertilizer and 
agri-chemicals can be imported duty-free and are zero rated for value-added tax (VAT), while 
most types of seed attract 5% import duty (15% for cotton seeds) and are also VAT exempt. 
However, it has been noted that high transport and administrative costs strongly increase the price for crucial inputs such as fertilizer.
3 
4.16.  Most agriculture goods are exempt from value-added tax. 
4.17.  The Government has periodically resorted to ad hoc bans on exports by private traders. The 
last such bans were introduced in December 2011 and in April 2013, covering 25 commodities 
including maize.  
4.18.  Malawi has notified the WTO that it does not apply any agricultural export subsidies.4  
4.19.  Tariffs are an important policy instrument in the agriculture sector. Their average (ISIC 
Rev.2 definition) is 18.8%, up from 16.3% in 2009 (Table A4.1). Individual MFN tariff rates range 
from 0% to 200%. A number of agricultural commodities imported to, or exported from, Malawi 
require a special trade permit (Section 3.1.9). A ccording to the authorities, the aim of the scheme 
is to guarantee food security as well as the he alth and safety of people, animals and plants. 
However, it has been observed that the operat ion of the permit system is regressive and 
effectively discriminates against small traders and small farmers.5 Application for the permits must 
be done in person in the urban centres. The authorities indicate that an online application system 
is planned. While the requirement used to co ver virtually all agricu ltural commodities, the 
Government abolished export licences in May 2014 for soya beans, groundnuts, pigeon peas and 
other legumes.  
4.20.  Virtually all imports in the agriculture and food sectors are subject to mandatory Malawi 
Bureau of Standards (MBS) inspection (Section 3. 1.9). All imported agriculture commodities must 
be accompanied by a non-GMO certificate; agricultural exports to GMO-free countries also require this certificate. The Government has allowed confined field trials for genetically modified cotton 
and cowpeas. 
                                               
3 These factors result in fertilizer prices being among the highest in eastern and southern Africa. 
World Bank (2014). 
4 WTO document G/AG/N/MWI/6, 19 May 2015. 
5 World Bank (2014). In particular, firms interviewed considered the time and costs of obtaining trade 
permits a major constraint to their business.  WT/TPR/S/335 • Malawi 
 
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  4.2.3  Key sub-sectors  
4.2.3.1  Maize 4.21.  Maize is grown by about 69% of all households
6 and around 97% of all farmers in Malawi. 
Since maize and other cereals represent the most important essential food source for smallholder 
farmers and their dependents, production is mostly for personal consumption and not marketed.7 
Consequently, exports and imports vary according to seasonal yields. 
4.22.  Since 2008, annual maize production has fluctuated between 2.9 and 3.9 million tonnes 
(Table 4.1). Production of maize in 2015 declined sharply below averages, to 2.9 million tonnes, as 
a result of an extended dry period and flooding. This has led to price hikes and food shortages in 
parts of the country.8 In reaction to this, the Government has stocked reserve depots and started 
relief maize distribution through ADMARC. 
4.23.  The Government provides price support for maize producers via guaranteed farm-gate 
prices and price ceilings at retail, implemente d by ADMARC. Poor maize farmers are the main 
target group of the Farm Input Subsidy Programme (Section 4.2.2). 
4.24.  The tariff on maize is 0%. Since Malawi's last review, maize has repeatedly been subject to 
export bans. There has traditionally been substantial informal cross-border trade in maize, as well as other commodities, between Malawi, Mozambique, Tanzania, and Zambia. Formal maize exports 
are largely based on government-to-government contracts, carried out mainly by the private 
sector (Grain Traders Association of Malawi) and monitored by the National Food Reserve Agency.  
4.2.3.2  Tobacco 4.25.  Tobacco has been grown in Malawi since the 1890s and has evolved to become the 
country's most important cash crop. Though traditionally produced by large estates, a series of 
reforms in the early 1990s increased opportunities for smallholder farmers to participate in the sector. Output has strongly increased over the past  three decades, due to both increasing acreage 
and higher productivity. As a result, Malawi ranks among the top ten tobacco producers in the 
world. Burley tobacco is by far the most widely produced variety and accounted for more than 90% of total production in 2011.  
4.26.  In 2012, tobacco production experienced a marked decline to 79.8 million kg, from 237.2 
million kg in 2011. The low production resulted mainly from a negative reaction by farmers to low prices offered at the auction floor market in 2011, which included switching to production of other 
crops such as cotton. 
4.27.  The growing season of tobacco lasts from August to January, at which time tobacco leaves 
are harvested, dried and cured. After grading, the cured leaves are tied into hessian bales of approximately 90 kg. These bales are marketed on the auction floor. 
4.28.  To a certain extent, Malawi's main tobacco buyers also buy leaf in neighbouring countries. 
Registered tobacco imports mainly come from Mozambique and Zambia and consist of dried leaf that is being processed in Malawi before re-export. 
4.29.  The Tobacco Control Commission is responsi ble for registering and licensing all the players 
in the tobacco industry. As at May 2014, more than 46,000 growers were registered.
9 Since the 
2007-08 season, tobacco sales have been subjec t to minimum prices, based on understandings 
between the Government, the Tobacco Control Commission, and the tobacco buyers. The 
minimum prices are established for each grade of  tobacco (the grades are determined by the 
Commission). Failure to adhere to  agreed minimum prices may lead  to withdrawal of the buyer's 
                                               
6 However, this figure has declined from 94% in 2009. 
7 90% of households grow maize mainly for personal  consumption. National Statistical Office (2015). 
8 The Malawi Vulnerability Assessment Committee (M VAC) reports that about 2.8 million people will 
require food assistance for a period of three to six months from October 2015 to March 2016 (the main lean 
period). This is a significant increase from last year, when an estimated 640,000 persons were assessed to be 
food insecure. 
9 Smallholders usually register jointly in "clubs", consisting of 12 to 20 farmers. WT/TPR/S/335 • Malawi 
 
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  licence. As a price-taker on the international tobacco market, however, Malawi has limited scope to 
raise farm incomes through minimum prices.  
4.30.  About 80% of the crop is sold on contract , while the remaining 20% is sold on auction. All 
sales of green leaf tobacco (unprocessed tobacco) must pass through the marketplace of Auction 
Holdings Ltd. (AHL); direct exports are not permitted. AHL's main shareholders are the tobacco 
growers and ADMARC. AHL is also Malawi's major collection point of foreign exchange (about US$2 million per day); prices are quoted in US dollars. Intermediate tobacco buyers are not 
permitted. Auctioning fees remain high, at currently 2.5% of the selling price, and 1.85% for direct 
sales. In addition, statutory levies apply: Agricultural Research and Extension Trust (ARET) levy (1%); Tobacco Control Commission (0.13%); and Tobacco Association of Malawi (TAMA) and other associations (US$0.7 per kg).  
4.31.  There are currently seven tobacco buyers represented in Malawi, mostly foreign-owned.
10 
These merchant companies buy, process and sell tobacco to cigarette manufacturers. 
4.32.  Extension and other support services to to bacco farmers are provided by the Ministry of 
Agriculture and the Agricultural Research and Extension Trust (ARET). One of ARET's main roles is 
the production and distribution of high-quality tobacco  seed, of which it is the only producer in the 
country. It also provides agronomic advice to sm allholder farmers. ARET is funded by a levy on 
gross proceeds at auction. 
4.33.  As Malawi considers itself vulnerable to anti-tobacco-smoking campaigns by other countries, 
it has repeatedly raised specific trade concerns in the TBT Committee about tobacco legislation adopted by other Members.
11 Malawi has also reserved its third party rights in the WTO dispute on 
tobacco plain packaging.12 
4.34.  The average applied MFN tariff on tobacco products is 48.6%, a strong increase compared 
to at the time of the previous TPR when it was 22.9%. Individual rates range from 10% to 200% 
and exceed bound rates on several items.13 Cigarettes and other tobacco products are subject to 
excise taxes (Section 3.1.5). Export permits for tobacco were abolished in 2013.  
4.35.  During the period under review, tobacco exports made up between 40% (in 2011) and 67% 
(in 2008) of Malawi's merchandise exports. A constantly increasing share of tobacco exports 
consists of wholly or partly stripped tobacco. Malawi's tobacco is mainly exported to Belgium, China, Egypt, and Germany. 
4.2.3.3  Sugar 
4.36.  Annual sugar production in Malawi stands  at around 300,000 tonnes (Table 4.1). It is 
dominated by Illovo Sugar Malawi Ltd, a subsidiary of the Illovo Sugar Group based in South Africa. Illovo owns two sugar estates, sugar mills, and two refineries. Two additional refineries 
opened in October 2013 and April 2014, respectively. Sugar cane products are a priority cluster of 
Malawi's National Export Strategy.
14 A part of local sugar production is used to produce ethanol. 
4.37.  The average applied MFN tariff on sugar is 18.3%, with rates ranging from 10% to 25%. 
Sugar exports have varied strongly since 2008, ranging from US$42 million in 2012 to 
US$214 million in 2011.  
4.2.3.4  Tea 4.38.  The tea industry in Malawi dates back to 1891, when plants were brought from the Royal 
Botanical Gardens in Britain. Tea is mostly grown on nine large estates (accounting for about 92% 
                                               
10 Alliance One Tobacco Malawi Ltd; Limbe Leaf To bacco Company; Africa Leaf Ltd; Malawi Leaf 
Company Ltd; Premium TAMA Ltd; Associ ated Tobacco Company; and RWJ Wallace. 
11 The concerns refer to various measures taken by Br azil, Canada, the European Union, France, Ireland, 
New Zealand, and the United Kingdom. 
12 WTO documents WTO/DS/434, WTO/DS/435, WTO/DS/441, WTO/DS/458, and WTO/DS/467. 
13 The authorities indicate that the high rates on eight tariff lines are due to a mistake that will be 
rectified during the next budget exercise (Section 3.1.5). 
14 Ministry of Industry and Trade (2012). WT/TPR/S/335 • Malawi 
 
- 51 - 
 
  of output) and by about 11,500 smallholders organized in the National Smallholder Tea 
Development Committee. About two thirds of tea produced is sold directly to the buyer. The 
remainder is sold at the Limbe Auction in Blantyre.15 Prices are market determined. Export permits 
for tea were abolished in 2013. 
4.39.  Tea production has experienced a declining trend since 2009 (Table 4.2). 
Table 4.2 Tea production and exports, 2009-15 
 2009  2010  2011  2012  2013 2014 2015  
Total production (tonnes) 52,559 51,591 47,056 42,490 46,463 45,855 39,447 
Total exports (tonnes) 46,837 48,572 44,893 41,834 37,100 39,766 .. 
Value of exports (MK millions) 9,697 11,529 10,737 16,047 26,799 26,710 .. 
.. Not available. 
Source: Tea Association of Malawi. 
4.40.  The average applied MFN tariff on tea is 21.3%, with rates ranging from 10% to 25%. Tea 
exports amounted to US$74 million in 2014, up from US$37 million in 2008.  
4.2.3.5  Cotton 4.41.  Cotton has traditionally been an important cash crop in Malawi. The crop is grown on about 
30,000 ha and supports some 120,000 smallholder fa rmers. There are four ginneries. Owing to 
diverse climate and market factors, annual cotton output has varied strongly since 2008-09, with a 
notable peak in 2011-12, when more than 230,000 tonnes were produced. More than half of 
cotton production is processed locally. Processing is limited to cotton ginning, and cooking oil 
extraction, with residues being processed into cotton seed cake used as livestock feed. 
4.42.  Between 2008 and 2012, the Government announced minimum producer prices for seed 
cotton. Cotton production has been targeted intermittently by the Farm Input Subsidy Programme. 
In 2015, the Government implemented contract farmin g, where it is up to the ginners to purchase 
the chemicals and seed for distribution to the fa rmers, while the farmer is then contractually 
obliged to sell to the ginner that supplied the inputs.  
4.43.   The Cotton Act of 2012 establishes the Cotton Council of Malawi; the Council regulates 
trade in cotton products including seeds and the operation of ginneries. According to the Act, only 
cotton varieties prescribed and certified by the Ministry of Agriculture may be grown in Malawi.  
4.44.  The average applied MFN tariff on cotton is 2.0%, with rates ranging from zero to 10%. 
From 2008 to 2014, exports of cotton and cotton linters fluctuated between US$12 million and 
US$48 million. 
4.2.3.6  Other crops 
4.45.  The importance of various other crops has grown over the past years, indicating increased 
diversification of Malawi's agriculture sector. These include products such as coffee, groundnuts, and certain vegetables. Pulses are an important food source for domestic consumption and also have a high significance in the smallholder sect or, being grown by 68% of farmers. Seed exports 
have also experienced very high growth over th e last decade, albeit with strong fluctuations. 
Oilseed products are a priority cluster of Malawi's National Export Strategy.
16 Exports of chillies, as 
a high-value horticultural product, have also grow n substantially, albeit with an unsteady trend. 
4.2.3.7  Livestock 
4.46.  The livestock sector contributes some 40% to  agricultural GDP. About half of all households 
own livestock. All major livestock species have registered increases during the review period. In 
2013-14, livestock counts were estimated at 1.28 million cattle, 5.68 million goats, 3 million pigs, 
                                               
15 FAO (2014). 
16 Ministry of Industry and Trade (2012). WT/TPR/S/335 • Malawi 
 
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  64.2 million chicken, and 264,000 sheep. Dairy production remains of limited importance, and 
domestic milk consumption is low. Exports of live animals amounted to US$1.8 million in 2014. 
4.2.3.8  Fishing 4.47.  The fisheries sector plays an important role  as a source of employment, food, rural income, 
and biodiversity. The sector directly employs about 59,000 fishers, who mainly use artisanal 
fishing methods. In addition, over 500,000 people ar e involved in fish processing and marketing, 
boat building, and engine repair. Dugout canoes  and plank boats, with or without outboard 
engines, are the main fishing vessels. Fish is the main source of animal protein in Malawi. 
4.48.  Total fish production over the last years has shown an increasing trend (Table 4.3). About 
90% of the catch originates from Lake Malawi, foll owed by Lake Chilwa, Lake Chiuta and the Shire 
River. The Government has develo ped a Fisheries Master Plan in order to outline key investment 
areas for sustainable utilisation of the capture fisheries resources and development of the 
aquaculture from 2012-22. 
Table 4.3 Total fish production, 2008-14 
(million tonnes) 
Year Capture  Aquaculture  Total  
2008 75,867 1,318 77,185 
2009 76,045 1,600 77,645 
2010 98,300 2,632 100,932 
2011 82,336 2,815 85,151 
2012 120,328 3,232 123,560 
2013 .. .. .. 
2014 .. .. .. 
.. Not available. 
Source: Information provided by the authorities. 
4.49.  The average applied MFN tariff on fish and fish products is 16.4%, with rates ranging from 
zero to 25%. Trade in fishing products is of li mited importance, with exports amounting to less 
than US$1 million and imports standing at US$2.2 million in 2013. Exports of live ornamental 
aquarium fish experienced strong growth over recent years.  
4.2.3.9  Forestry 4.50.  The Department of Forestry in the Minist ry of Natural Resources, Energy and Mining is 
responsible for formulating and implementing policie s for the subsector. The National Forest Policy 
of 1996 remains the subsector's main policy document; a new document is under preparation. Its main objective is to sustain the contribution of national forest resources to the quality of life in 
Malawi. The Forestry Development and Management Fund (FDMF) has as an objective to improve 
the development and management of forest resources. The Fund's expenditure in 2015 amounted to MK 900 million.  
4.51.  Forests in Malawi are generally public assets managed by the state, or common property 
resources on customary land. The rural poor depend heavily on forest resources for their 
livelihood. Deforestation is a serious problem. Fore st coverage has fallen from 4.4 million hectares 
in 1972 to less than 3.1 million hectares in 2013.
17 Total forest cover is estimated to be declining 
at an annual rate of 1.0% to 2.8%.  Deforestation is driven by high population pressure and 
agricultural expansion; food insecurity leading to  unsustainable management of forest resources; 
the population's heavy dependence on fuel wood as a source of energy for cooking and heating; 
the use of wood for drying tobacco leaves; and the lack of secure land tenure. The Government is 
trying to address deforestation through tree planting in state-owned forests and by exploring alternatives to using firewood.  
4.52.  There is a 50% export duty on all types of wood. The exportation of hardwood timber is 
prohibited. The average applied MFN tariff on forestry goods (ISIC 121) is 4.6%, with rates 
                                               
17 FAOSTAT. WT/TPR/S/335 • Malawi 
 
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  ranging from zero to 10%; the MFN tariff on logging products (ISIC 122) is 10%. Annual trade in 
forestry and logging products has not exceeded US$1 million in any year since 2008. 
4.3  Mining and energy  4.3.1  Mining and quarrying 
4.53.  Mining and quarrying contribute some 5%  to GDP. Malawi has rich mineral resources 
suitable for exploitation. These resources include coal, uranium, gemstone, limestone, bauxite, dimension stones, gypsum and rock aggregates. Ongo ing exploration activities are likely to reveal 
other mineral deposits. 
4.54.  The Kayerekera uranium mine, which opened  in 2009, has remained the largest investment 
in Malawi's mining sector. Its output was generally exported for processing in Canada; however, the continued decline in the price of uranium foll owing the Fukushima accident forced the company 
to suspend mining and processing operations in 2014. Operations were still suspended in January 
2016 and are only likely to resume if there were to  be a significant recovery in uranium prices. 
4.55.  There are four coalfields in Malawi, two of which are currently mined. Proven reserves 
exceed 22 million tonnes. Current annual coal produc tion satisfies by half the national demand of 
140,000 metric tonnes. In July 2011, two companies were granted licences to carry out oil explorations in Lake Malawi.  
4.56.  The Ministry of Natural Resources, Energy and Mining regulates Malawi's mining industry in 
accordance with the Mining and Minerals Act of 1981 and the Petroleum (Exploration and Production) Act of 1983. Mineral rights are subject to royalty payments and can only be granted to 
c i t i z e n s  o f  M a l a w i  o r  a p p l i c a n t s  w h o  h a v e  b e e n  r e s i d i n g  i n  M a l a w i  f o r  a t  l e a s t  f o u r  y e a r s .  
Companies must be incorporated in Malawi to be eligible for mineral rights.  
4.57.  The average applied MFN tariff on mining and quarrying goods (ISIC Rev.2 definition) is 
9.0%, with rates ranging from 0% to 25% (Table A4.1). Exports of mining and quarrying products 
are dominated by uranium. Annual exports increase d from less than US$10 million in 2009 to over 
US$130 million between 2010 and 2013, but fell to US$40.8 million in 2014 due to the closure of the Kayerekera mine. 
4.3.2  Energy 
4.3.2.1  Hydrocarbons 4.58.  Biomass, notably charcoal and firewood, still provides for the bulk of Malawi's primary 
energy needs. The Government aims to shift ener gy sources away from the current heavy reliance 
on traditional biomass to electricity, liquid fuels and renewables. 
4.59.  The Energy Regulation Act No. 20 of 2004 establishes the Malawi Energy Regulatory 
Authority (MERA) as a regulator. MERA sets maximum prices for fuel through an automatic pricing 
mechanism that links fuel retail prices to procurement costs (in-bond landed cost). Price 
adjustments are triggered when an increase or decrease of the product landed cost exceeds 5%. Changes in product landing cost that are within the trigger band may be absorbed by a Price 
Stabilisation Fund, set up to provide direct compensation to importers.  On a number of occasions, 
however, the Government has suspended the principles of automatic pricing. Since 2008, pump prices have been revised 24 times. Prices of lubricants are market-determined. 
4.60.  Malawi imports most of its fuel. A small share of Malawi's fuel supplies (about 7%) comes 
from ethanol produced locally from sugar cane. Petrol has been subject to a blending requirement 
of 80:20 fuel/ethanol, but annual production of about 18 million litres is insufficient to meet this requirement. Until 2012, the chronic shortage of foreign exchange under Malawi's fixed exchange 
rate regime had regularly led to fuel shortages. The importation, production, storage, 
transportation, wholesale and retailing of fuels are subject to different types of licences, all of which are issued by MERA. Licence fees vary between MK 50,000 for retailing and MK 300,000 for 
importation. The licences are typically granted on an annual basis. WT/TPR/S/335 • Malawi 
 
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  4.61.  In 2012, the Government established the National Oil Company of Malawi (Nocma) with a 
view to promoting upstream oil and gas explorat ion, and managing the country's strategic fuel 
reserves.  
4.62.  Under the Liquid Fuels and Gas (Production and Supply Regulations) of 2009, commercial 
operators must hold 30 days of minimum reserve stocks. This is to be supplemented by a fuel 
reserve of at least 60 days held by the Government. To that end, public fuel storage facilities have been rehabilitated or constructed. Commissioning of the fuel reserves is to be conducted in 2015-
16.  
4.63.  Fuels are subject to different levies, which are the Energy Regulation Levy, the Road Levy, 
the Malawi Bureau of Standards Cess, the Rural Electrification Levy, and the Storage Levy. Exports of liquid fuels and gas are prohibited. Import duties on "petroleum refineries" average 6.3%, 
ranging from zero to 20%; the average tariff on "m anufacture of miscellaneous petroleum and coal 
products" is 3.3%, with a range from zero to 10%.  
4.3.2.2  Electricity 
4.64.  Nearly 95% of Malawi's electricity supply is provided by hydropower from a cascaded group 
of interconnected hydroelectric power plants located on the middle part of Shire River and a mini hydro on the Wovwe River. Total installed capacity  of these hydropower plants is 351 MW (up from 
285 MW in 2008
18); total production in 2014-15 amounted to 1,460.4 GWh.19 Some thermal power 
plants serve as stand-by for the interconnected system. In addition, many companies have their own back-up diesel-driven generators.  
4.65.  In order to increase power supply, the Government has been undertaking feasibility studies 
for additional hydropower projects, which should  be undertaken by independent power producers 
or public-private partnerships. In addition, it plans to restructure the power market. This will involve the separation of electricity generation from transmission and distribution. This should 
level the playing field with a view to at tracting independent power producers.  
4.66.  In 2014, an estimated 9.3% of the populati on, mostly located in the big cities, had access 
to electricity (up from some 5% in 2005).
20 Malawi's energy generation and supply is inadequate 
to meet the current industrial, mining and tourism demands and remains a growth constraint. 
Load-shedding and unannounced outages are freq uently used to ration power supply. The 
electricity shortage has also been recognized as a factor in deterring investors, and in weakening the competitiveness of local industries.
21 Transmission and distribution losses remain large, 
estimated at some 20%. An ongoing project aims to reduce these losses. 
4.67.  Pursuant to the Electricity Act of 2004, the MERA regulates Malawi's electricity sector. 
Electricity Supply Corporation of Malawi Ltd. (ESCOM) is the state-owned power-producing 
company. It is in control of generation, transmission and distribution of electric power in the 
country.  
4.68.  Electricity tariffs must be approved by  the MERA and vary by type of consumer and 
contract, with industrial clients paying more. Tariff setting is done on the basis of long-run 
marginal cost estimations, taking into account the revenue requirements of the Electricity Supply Commission of Malawi (ESCOM) and "social objectives". An "automatic tariff adjustment" mechanism is triggered if the combined impact of exchange rate fluctuations and inflation exceeds 
5%. As at January 2016 the price for one Kwh ranged between MK 33.3 and MK 79.7. 
Consequently, Malawi's electricity tariffs are amongst the lowest in the world, and too low to encourage investment in the sector. Against this background, the Government is planning to move 
towards cost-reflective tariffs. 
                                               
18 In December 2013, the Kapichila hydropower station (phase II) started producing electricity, adding 
64 MW of capacity. 
19 No data is available for off-grid production by private generators, although in some cases (e.g. the 
Kayerekera uranium mine) this is substantial.  
20 Finmark Trust (2014). 
21 Malawi Confederation of Chambers of Commerce (2013). WT/TPR/S/335 • Malawi 
 
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  4.69.  In 2014, MERA approved a gradual increase of the base tariff, which is being phased in over 
a four-year period and is conditional on ESCOM meeting a set of performance targets.22  
4.70.  The World Bank-funded Energy Sector Support  Project aims at increasing the reliability and 
quality of electricity supply in the major load centres. In addition, the project is working towards 
improving demand side management and energy efficiency measures in the grid.  
4.71.  Malawi's electricity grid is not connected to neighbouring countries. A feasibility study is 
being carried out for the construction of a high voltage transmission line to the Cahora Bassa dam 
in Mozambique.  
4.72.  The Malawi Rural Electrification Programme (MAREP) aims at increasing access to electricity 
in peri-urban and rural areas. The selection of electrification projects is based on a Rural Electrification Master Plan of 2004. Under this programme , numerous "trading centres" along 
Malawi's main highways have been electrified.  
4.73.  There appears to be a relatively large potential for electricity production based on renewable 
energy resources in Malawi.
23 Due to constant wind speeds and high levels of solar irradiation, 
alternative electricity from photovoltaic modules and windmills is increasingly being used in 
telecommunications, lighting, refrigeration, and water pumping.  
4.4  Manufacturing 
4.74.  Malawi's manufacturing sector remains rela tively small. It centres around agro-processing; 
plastics; wood and paper products; basic pharmaceutical products; garments and textiles; and non-electrical machinery. The contribution of manufacturing to GDP is estimated at about 9.3%. Most manufacturing companies are located around the city of Blantyre. The sector faces a number 
of challenges such as intermittent power supply and high transport costs.  
4.75.  Manufactured goods are a priority cluster of Malawi's National Export Strategy, through four 
sub-clusters: beverages, agro-processing, plastics and packaging, and assembly.
24  
4.76.  Malawi does not recognize international test certificates. Importers of manufactured goods 
such as fertilizer must pay MBS for the analysis of every imported consignment (Section 3.1.8).  
4.77.  The average applied MFN tariff on manuf actured goods (ISIC Rev.2 definition) is 12.4%, 
with rates ranging from 0% to 200% (Table A4.1). The highest tariffs apply to cigarettes and other 
tobacco products. Exporters of manufactured goods may benefit from rebates of tariffs on imported inputs (Section 3.1.4.2).  
4.78.  Imports of manufactures (SITC Rev.3 definition) amounted to US$1.97 billion in 2014, up 
from US$1.69 billion in 2008. Imports are domina ted by chemicals, machinery, and transport 
equipment. Exports of manufactures increased from US$88 million in 2008 to US$252 million in 
2014. Chemicals and machinery also dominate exports, while textiles and clothing have declined in 
importance. 
4.5  Services 4.5.1  Main features and policy objectives  
4.79.  Services constitute around half of Mala wi's GDP. Wholesale and retail trade is the most 
dominant activity, contributing some 15% to GDP, followed by financial services. Malawi consistently records a substantial deficit on serv ices trade. In 2014, this deficit amounted to 
US$ 144 million. Most of the services deficit is attributable to freight and insurance. 
                                               
22 The first tariff increase (13.5%) came into effect from 4 April 2014; tariffs would be raised by another 
8.9% in 2016 and 1.9% in 2017. 
23 Ganula (2013), Kamkwamba (2010). 
24 Ministry of Industry and Trade (2012). WT/TPR/S/335 • Malawi 
 
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  4.80.  Under the GATS, Malawi scheduled sectoral commitments covering a few subsectors.25 In 
business services, it bound, without limitations on market access and national treatment, measures affecting all modes of supplying accountancy, medical and dental, and midwifery services, except for temporary movement of peop le. Identical commitments were made for certain 
other business services (technical testing and analysis, and services incidental to mining and 
exploration); construction; health and social services of hospitals and other human health services; tourism and travel-related services; an d banking. Measures affecting the presence of 
natural persons are unbound.  
4.5.2  Financial services  4.5.2.1  Introduction 4.81.  Malawi's financial services sector is still relatively small, with commercial banks dominating 
the industry. The sector has been resilient during the period under review. It is supervised by the 
Reserve Bank of Malawi (RBM). One of the fast est-growing service sectors has been financial 
services; in 2014 it contributed about 4.7% to GDP. 
4.82.  Malawi instituted a number of financial services sector reforms during the period under 
review. This followed the development and launch of the National Strategy for Financial Inclusion in 2010.
26 Financial inclusion is also an important part of the 2012 Malawi Growth and 
Development Strategy and was considered as a vehicle for achieving the 2015 Millennium 
Development Goals. The percentage of Malawi's population with access to financial products increased from 45% in 2008 to 54% in 2014.
27  
4.83.  The Financial Services Act of 2010 provides for a single regulatory body for the financial 
services sector through the establishment of a Registrar of Financial Institutions who delegated 
this authority to the Reserve Bank of Malawi. Subsidiary financial sector laws, namely the Banking Act, the Insurance Act, the Microfinance Act, the Credit Reference Bureau Act, the Securities Act, 
and the Financial Cooperatives Act, were also enacted in 2010.  
4.5.2.2  Banking 4.84.  Malawi's banking sector comprises twelve commercial banks, six of which are foreign-
owned. Since the government's remaining stakes in two banks were sold in 2015, no commercial 
bank remains under state control. The three largest banks account for over 58% of gross loans, deposits and total capital. Total deposits amount ed to MK 567 billion in September 2015. About 
28% of deposits are held in foreign currency, mostly in US dollars. Average lending rates for 
Kwacha-denominated loans have remained high du ring the period under review, between 35% and 
40%, mostly due to high inflation. 
4.85.  Malawi made commitments for banking services under the GATS with no limitations on 
market access and national treatment for modes 1 to 3, while mode 4 is unbound.
28 
4.86.  The RBM issued guidelines for the applic ation for a banking licence in 2009. The minimum 
start-up capital for a bank is the Malawi Kwacha  equivalent of US$5.0 m illion (US$1.5 million for 
other financial institutions). Applicants must disclose the ownership and management structure, 
and submit a business plan for the first three year s. Foreign applicants must also prove that the 
bank is "in good standing" with the home-country supervisor. 
4.87.  Since January 2014, banks have to comply with Basel II standards. They are required to 
maintain minimum core capital and total capital ratios of 10% and 15%, respectively (previously 
6% and 10%); conduct an annual internal capital adequacy process and submit the process documentation to RBM; publish market disclosure reports; submit to RBM the Basel II Call Report 
                                               
25 WTO document GATS/SC/100, 30 August 1995. 
26 Ministry of Finance (2010). 
27 Finmark Trust (2014). 
28 Mode 4 is unbound except for measures concerning the entry an d temporary stay of natural persons 
employed in management and expert jobs for the implementation of fore ign investments. The employment of 
such persons shall be agreed upon by  the contracting parties and approved by the Ministry of Home Affairs. 
WTO document GATS/SC/100, 30 August 1995. WT/TPR/S/335 • Malawi 
 
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  on a monthly basis; and maintain up-to-date risk management systems and standards. It has 
been observed that the introduction of minimum capital standards has improved capitalization of the banking sector, but that some significant weaknesses remain, such as high-risk concentration and deteriorating loan quality.
29 Legislation on a deposit insurance scheme is under preparation.  
4.88.  Mobile money has increased in importance since Malawi's last review, with registered 
subscribers for mobile payments amounting to MK 12.5 million in 2014. Provision of mobile financial payment services requires approval of the RBM, which published relevant guidelines in 
2011. In addition to mobile money services offered by commercial banks, there are two registered 
mobile network operators. In 2013, the RBM and the MACRA signed a Memorandum of Understanding to jointly oversee the operations of financial services offered by mobile network operators. 
4.89.  In April 2010, the Government enacted the Credit Reference Bureau Act to regulate the 
compiling and processing of credit information. There are two credit reference bureaus in Malawi. 
4.5.2.3  Insurance and Pension Funds 
4.90.  The Insurance Act of 2010, replacing legisl ation from 1957, provides for the regulation and 
supervision of the industry through the  RBM. The Act allows the establishment of subsidiaries of 
foreign insurance establishments, six of which operate in Malawi. The minimum capital 
requirement is MK 50 million for general insurance, MK 75 million for life insurance, and 
MK 100 million for reinsurance. Life and general insurance may not be offered by the same company. 
4.91.  Malawi's insurance sector is comprised of eight general insurers, four life insurers, one 
reinsurance company, and a number of insurance brokers and agents. Overall insurance coverage 
r e m a i n s  l o w ,  w i t h  j u s t  2 . 2 %  o f  a d u l t s  h a v i n g  a  financial product covering risk, typically life or 
health insurance.
30 Total capital of the life insurance sector amounted to MK 22.1 billion in 
September 2015. Insurance premiums are market -determined, without need for approval, and 
third-party liability motor-vehicle insurance is the only obligatory insurance. An approval by RBM is needed to insure abroad any risk that is incurred in Malawi.  
4.92.  The Pensions Act of 2011 regulates pension funds. The Act provides for mandatory group 
life insurance for employees in the formal sector. The Act was amended by the Pension (Amendment) Bill of 2014 in order to regulate the establishment, management, and supervision of pension funds. 
4.5.2.4  Microfinance and financial cooperatives 
4.93.  The microfinance industry is regulated by  the Microfinance Act of 2010. The regulation and 
supervision of these institutions is mandated to the Reserve Bank of Malawi. As at 
September 2015, Malawi had 27 registered microfinance institutions.
31 Although authorities have 
reported that the sector has generally been stable during the review period, the microfinance industry has faced various challenges, which include liquidity and credit risk and problems meeting 
minimum capital requirements. The regulatory framework for licensing Deposit Taking MFIs (DTIs) 
in the form of directives was gazetted by the Reserve Bank of Malawi in September 2014. As at September 2015, an estimated 499,000 people were using micro-finance services; total assets of all micro-finance institutions amounted to MK 26.7 billion.  
4.94.  The Financial Cooperatives Act was enacted in February 2011, instructing the Registrar of 
Financial Services (which delegated its right to the RBM) to regulate and supervise operations of Savings and Credit Cooperatives (SACCOs). All SA CCOs had to apply for a substantive licence by 
March 2015, which was granted to 30 SACCOs out of the 50 that had applied. The RBM directly 
supervises 19 SACCOs with capital over US$200,000.00, accounting for over 80% of all SACCO assets, loans and deposits. With a view to easing the regulatory burden, the supervision of eleven 
                                               
29 IMF (2015). 
30 Finmark Trust (2014)  
31 Of these, 17 are microcredit agenci es, nine are non-deposit-taking in stitutions, and one is a deposit-
taking institution. WT/TPR/S/335 • Malawi 
 
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  SACCOs was delegated by the RBM to the Malawi  Union of Savings and Credit Cooperatives 
(MUSCCO) under an MoU.  
4.5.2.5  Capital market 
4.95.  Malawi's capital market is governed by the Securities Act of 2010, which replaced the 
Capital Market Development Act of 1990. The Mala wi Securities Exchange (MSE), supervised by 
the Registrar of Financial Institutions, started equity trading in 1996, trading both shares and 
bonds.  
4.96.  The capital market is relatively small. Th ere are 14 registered domestic counters and four 
stock-brokers. Total market capitalization in December 2015 was MK 7,522 billion (approximately US$17.1 billion). The stock market transacted a total of 2.36 billion shares at a total value of MK 10.9 billion (US$26.67 million) in 1,220 trades in 2015.  
4.5.3  Communication services 
4.5.3.1  Introduction 4.97.  The communications industry in Malawi, encompassing telecommunications, postal services 
and broadcasting services, is regulated by the Communications Act of 1998. The Act provides for 
the establishment of the Malawi Communications Regulatory Authority (MACRA), which is mandated to oversee operations of the sector including licensing telecommunications, postal and 
broadcasting services operators; resolving disputes; approving tariffs and interconnection rates; 
and monitoring and promoting competition among operators. 
4.5.3.2  Telecommunication 4.98.  According to the Communications Act of 1998 and the licensing regime established in 2000, 
any interested individual can apply for a telecommunication service licence. The Act provides that 
licensing procedures shall be objective, transparent, and non-discriminatory. Individual licences are on offer for fixed telephone and mobile telephone services; and general licences for internet 
service providers (ISP) and satellite and data services. According to the authorities, 
telecommunication service licences in Malawi are issued based on market segmentation, i.e. competitive market or non-competitive market. For the competitive market, which encompasses 
ISP, data service providers and paging services, th ere is no limit on the number of players. For the 
non-competitive market, which encompasses fixed telephone and cellular services, the number of players is restricted, and MACRA has the right to  determine the licensing procedure on a case-by-
case basis, taking into account both the applicant's capability to operate the service, and public 
interest. Foreign ownership is limited to 40%, lic ensing may favour Malawian entrepreneurs, and 
the approval of the relevant Minister is  required after approval of MACRA.  
4.99.  Amendments to the 1998 Communications Act have been proposed and parliament was 
expected to approve the bill by the end of 2015.  The amended Act is expected to enable more 
players to penetrate Malawi's communications industry and modernise its economy through information and communications technology (ICT) as enunciated in the National ICT Policy
32 
launched in 2013.  
4.100.  As at January 2016, six companies are licensed to offer telecommunications services. 
There are two licensed fixed-telecommunication operators: Malawi Telecommunications Limited and Access Communications Limited. However, th e penetration rate for the local fixed-voice 
market is low, at less than 0.2%. In mobile telecommunications, there are two mobile network 
operators (Airtel Malawi and Telekom Networks Malawi Limited) with approximately 5 million subscribers, shared equally. An additional mobile licence was issued in 2015 to Lacell Private 
Limited of Singapore.  
4.101.  Tariffs are market-determined. Operators are, however, required to advise MACRA seven 
days in advance of price adjustments at whic h point MACRA may suspend any proposed tariff 
                                               
32 Viewed at: http://www.macra.org.mw/wp-content/uploads/2014/07/Malawi-ICT-Policy-2013.pdf . WT/TPR/S/335 • Malawi 
 
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  adjustment if it is considered unjustifiable. Interconnection charges are established by MACRA. 
MACRA is also responsible for type appr oval of radio and telecom equipment. 
4.102.  Internet service provision is regulated by MACRA in accordance with the provisions of the 
Communications Act of 1998. Any person, including foreign, is free to apply for an operating 
licence. There are currently 22 licensed internet serv ice providers, but the internet user rate is still 
very low owing to limited availability and high cost of bandwidth. MTL and the Electricity Supply 
Corporation of Malawi (ESCOM) dominate the ma rket in terms of fibre-optic cable internet 
connections with ESCOM fibre cables running on power lines.  
4.103.  Rates for internet services are mark et determined. In July 2015, the Government 
introduced a 10% excise duty on all data transfers including internet and similar services, in addition to value-added tax.  
4.104.  In 2012, Malawi possessed 2,112 kilometres of fibre-optic cable, mainly concentrated in 
urban areas. Significant improvements in terms of  internet speed and lower prices are expected 
from the completion of a fibre-optic backbone fo r high-speed voice and data transmission and the 
connection with neighbouring countries.  
4.105.  In 2014 MACRA announced that it was planning to establish a Universal Access Fund to 
ensure that rural areas of the country are served  by mobile services. Under the scheme, subsidies 
shall be offered to operators to roll out services to un-served and rural areas. 
4.5.3.3  Postal services 4.106.  Postal services are licensed and regulated by MACRA in accordance with the provisions of 
the Communications Act of 1998. Operators of postal services are required to obtain a licence. 
There are seventeen registered postal and courier service operators in Malawi, some of which have 
been in the process of being deregistered.
33  
4.107.  State-owned Malawi Posts Corporation (MPC) is the biggest postal and courier service 
company. The MPC was established in June 2000 under the Communications Act of 1998 and is 
mandated to provide postal and financial services.34 The company has extended its services to 
electronic money transfer through its network of 120 post offices throughout the country.  
4.5.4  Transport services 
4.5.4.1  Land transport and transport corridors 4.108.  Malawi's transport sector has a key role in  determining the domestic price of staple foods, 
the cost of imports, and the country's internationa l competitiveness. The Ministry of Transport and 
Public Works is in the process of formulating a National Transport Masterplan, which will identify 
interventions aimed at reducing transport costs. 
4.109.  Road transport is the dominant mode of tr ansport in Malawi. Its road network totals some 
15,400 kilometres, of which some 4,300 are paved.
35 Transport costs remain high by regional 
comparison, caused both by structural and regulatory factors.36 These high transportation costs 
impede Malawi's export competitiveness directly, but also indirectly when imported inputs are 
used, and thereby constrain it from diversifyi ng its productive base. On the other hand, 
domestically produced goods benefit from a cons iderable natural protection against imported 
goods. In 2011 and 2012, land transport was also affected by chronic fuel shortages.  
4.110.  The Roads Authority, established through the Roads Authority Act of 2006, is responsible 
for the construction, maintenance and rehabilitation of public roads for which funds are raised by 
the Roads Fund Administration, mainly through the fuel levy. Various road projects have also been financed by development partners. 
                                               
33 Viewed at: http://www.macra.org.mw/?page_id=64 . 
34 Viewed at: http://malawiposts.com/background.html.  
35 The authorities indicate that a process of road reclassification is ongoing. 
36 World Bank (2014). WT/TPR/S/335 • Malawi 
 
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  4.111.  Malawi has a rail network of some 933 kilometres. Annual passengers number about one 
million; annual freight is around 250,000 tonnes. Since 1999, the management and operation of Malawi Railways has been under a 20-year concession held by Central East African Railways (CEAR), a consortium of Mozambican and Brazilian investors that owns the railway's rolling stock. 
The railway connects the major cities of Lilongwe and Blantyre with the railway system in 
Mozambique, with access to the Indian Ocean at the port of Nacala (Nacala Corridor). The concessionaire has the freedom to set tariffs, but passenger tariffs require prior notification to the 
Government.  
4.112.  As part of the Nacala Corridor Railway Project, the Government and a private investor 
(Vale) signed a concession agreement in 2011 for the construction of a railway line (138.5 km) from Kachaso village to join the existing railway at Nkaya junction, aiming to increase the 
efficiency of the Nacala corridor. Operations started in December 2015.  
4.113.  As a landlocked country, Malawi is highly dependent on the efficiency of transit corridors 
and trade logistics in neighbouring countries. There are three major transit corridors: Beira and 
Nacala in Mozambique, and Durban in South Africa (Table 4.4). A fourth transit corridor, to Dar-es-
Salaam in Tanzania, is significant for the importation of vehicles and fuel for the northern region. The Mozambican port of Beira handles most of Malawi's trade (about 47%), followed by Durban 
(about 15%). The Durban corridor logistics are valued for the consistency and reliability required 
for time-sensitive goods (such as garments). The Beira route is shorter, but considered less reliable. The Nacala railway corridor is generally the lowest-cost option, but port delays may be long and unpredictable. The Beira or Nacala corridors are thus dominated by relatively time- 
insensitive, high-bulk/volume exports, such as tobacco and minerals. 
4.114.  According to the authorities, average transport times in 2014-15 were:  two days by road 
between Blantyre and Beira; four and a half da ys by road between Blantyre and Dar-es-Salaam; 
seven days by road between Blantyre and Durban ; and seven days by rail between Blantyre and 
Nacala. 
Table 4.4 Characteristics of main international transport corridors Port 
Transport 
mode 
Infrastructure 
condition 
Port reliability 
Port delay 
Transit time 
freighta 
From Lilongwe 
(km) 
From Blantyre 
(km) 
Cost US$/ 
tonne/ 
km full 
container 
truckb 
Beira Road Good/fai r Medium 2-4 weeks  2-3 days  1,194  846 0.16-0.18  
Durban Road Good High 1 day  5 days  2,678  2,323 0.09 
Nacala Railway Poo r Low >3 weeks  Unpredictable  1,085  959 0.055-0.092  
Dar-es-
Salaam Road Good/fai r Medium 4 weeks  4 days to 3 months  1,667  2,031 0.40 
a Malawi Leaf sent a trial consignment of four containers by train to Dar-es-Salaam in 2012 and it took 
three months. Beira is very congested during the harvest season and waiting times can exceed one month. 
b The transport prices are based on a small sample  of trucking/freight forwarding companies and 
should be considered indicative.  
Source: World Bank (2014). None of the firms interviewe d used Dar-es-Salaam, and one of the firms quoting 
for Nacala stated "the railway is so inefficient that we cannot use it". 
4.5.4.2  Air transport 
4.115.  In accordance with the Aviation Act of 1970, air transport in Malawi is regulated by the 
Department of Civil Aviation. The Department is also responsible for the management of Malawi's airports, except the main airport, Kamuzu International Airport in Lilongwe, which is owned and 
managed by state-owned Airports Developments Li mited (ADL). The authorities indicate that new 
air transport legislation is under preparation that would provide for the establishment of a Civil Aviation Authority. 
4.116.  Malawi has two international airports, in  Blantyre (Chileka) and Lilongwe (Kamuzu), and 
around 18 provincial airports. Airport ground handling and air-freight services are generally WT/TPR/S/335 • Malawi 
 
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  provided by private companies, although ADL, through a subsidiary, also provides catering 
services to airlines in Lilongwe. Passenger numbers at Chileka and Kamuzu airports since 2010 are presented in Table 4.5. 
Table 4.5 Passengers handled at Chileka an d Kamuzu international airports, 2007-15 
Year Chileka International 
Airport Kamuzu International 
Airport Total 
2007-08 85,239 146,900 232,139 
2008-09 84,951 143,378 228,329 
2009-10 68,423 136,377 204,800 
2010-11 68,853 112,465 181,318 
2011-12 72,847 132,456 205,303 
2012-13a 81,200 145,230 226,430 
2013-14 .. .. .. 
2014-15 .. .. .. 
.. Not available. 
a Projections. Source: Department of Civil Aviation. 
4.117.  Malawi's national carrier, Air Malawi, was partly privatized in 2013 with Ethiopian Airlines 
acquiring a 49% stake. The airline was rebranded Malawian Airlines and is under the management 
of Ethiopian Airlines. Privatization of the airline is reported to have increased competition on regional routes, which has led to a decrease in ai rfares by as much as 20%, and is expected to 
contribute to the growth of the tourism industry.
37  
4.118.  Malawi has bilateral air transport agreements with Ethiopia, Kenya, Mauritius, 
Mozambique, Qatar, South Africa, Tanzania, the United Arab Emirates, the United Kingdom, 
Zambia, and Zimbabwe. The agreements mostly cover the first four freedoms. Malawi is also party 
to the Yamoussoukro Decision of November 1999 fo r the gradual liberalization of intra-Africa air 
transport services, which establishes that parties shall grant fifth freedom rights to each other.38 
Cabotage is not permitted for foreign airlines. 
4.5.4.3  Water transport 
4.119.  Various private operators transport passengers and cargo, domestically and 
internationally, along Lake Malawi. In order to bring in investment for port operations, the 
Government concessioned the operations of Lake Malawi ports to a private company (Mota Engil) 
in 2013 for a period of 35 years. The concession grants the concessionaire the right to finance, manage, and operate the main ports of Lake Malawi. The concessionaire also has the right to provide for new project facilities or services to customers, such as pilotage, towage, bunkering, 
stevedoring, cargo handling and warehousing.  
4.120.  The Inland Waters Shipping Act of 1995 is the principal legislation applicable to water 
transport in Malawi. The authorities indicate that the Act does not provide a facilitative 
environment for the operations of the signed co ncessions with the private sector and that the 
regulatory framework and its enforcement regime need to be improved to curb illegal operations and to improve safety and efficiency. The authorities indicate that the Act and subsidiary 
legislation are under review. 
4.121.  The Shire-Zambezi Waterway Project aims at reopening a waterway from the inland port of 
Nsanje in Malawi to the Indian Ocean port of Chinde in Mozambique, representing a distance of approximately 238 km.  The Nsanje port opened in 2010, but remained non-operational by 
January 2016 due to unresolved contract issues with Mozambique.  
                                               
37 Ministry of Finance, Economic Planning and Development (2014). 
38 It has been observed, however, that Malawi did allow fifth freedom rights  under the Yamoussoukro 
Decision through the COMESA Legal Notice No. 2, but th is was revoked to pave way for negotiations with 
Ethiopian airlines for the privatisation of Air Malawi. As a result, Kenya Airways had to stop the exploitation of the Lusaka-Lilongwe route in March 2014. World Bank (2014) WT/TPR/S/335 • Malawi 
 
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  4.5.5  Tourism 
4.122.  Malawi's GATS commitments in tourism and travel-related services indicate no limitations 
on market access and national treatment in Mode s 1 to 3, while Mode 4 is unbound except for 
measures concerning the entry and temporary stay  of natural persons employed in management 
and expert jobs for the implementation of foreign investment.39 
4.123.  Malawi's tourism sector is predominantly based on natural and cultural tourism. The prime 
attractions are Lake Malawi (which is said to house some of the greatest fish diversity of any lake 
on earth) and its islands, national parks, wi ldlife reserves, forests, mountain sceneries, and 
cultural historical attractions. Tourism and travel  services contributed about 4.5% to GDP in 2014, 
a contribution which is expected to continue growing.40 Tourist arrivals in Malawi average 
approximately 800,000 international tourists annually. 
4.124.  Tourism is regulated and promoted by the Ministry of Tourism, Wildlife and Culture. The 
Malawi Growth and Development Strategy (2011-2016) identifies the tourism sector as one of the priority areas with significant growth potential.
41 Policies that promote the tourism sector in Malawi 
include the Tourism Policy, Parks and Wildlife Poli cy, and the Cultural Policy. The National Tourism 
Policy recognizes a number of challenges facing the tourism sector, which include inadequate infrastructure; environmental degradation and deforestation; inadequate investment in tourism 
services; lack of investment incentives; lack of awareness and inadequate marketing; limited 
trained manpower; and limited connectivity. Other constraints include weak backward linkages and the lack of well-trained staff.
42 Newly introduced visa requirements may also hamper the 
development of the tourism sector.43 Limitations on land ownership by foreigners (Section 2.4) 
also inhibit the construction of bigger hotel comp lexes and conference centres. The interests of 
private sector tourism operators are represented by the Malawi Tourism Association. 
4.125.  The Tourism and Hotels Act of 2003 is the main legal instrument for the tourism sector. 
The Act establishes the Tourism and Hotels Board, which is responsible for licensing and classifying 
all hotel establishments. Grading criteria for ho tels were issued in 2010. There are plans to 
establish a Tourism Development Fund (a revolving fund within the Malawi Development Fund) 
specifically for SMEs in the tourism sector. 
4.126.  International arrivals have increased since 2010 (Table 4.6). On average, 78% of total 
arrivals originated from Africa, 13% from Europe, 4% from North America, and 5% from other regions. 
Table 4.6 Malawi, tourism sector 2009-13 
 2009  2010  2011  2012 2013  
Total arrivals 755,000 746,129 766,892 770,341 789,000 
Hotel occupancy rate (%) 59.8 53.0 51.0 54.0 54.9 
Source: Malawi authorities.  
 
                                               
39 The employment of such persons shall be agreed up on by the contracting part ies and approved by the 
Ministry of Home Affairs. WTO document GATS/SC/100, 30 August 1995. 
40 Malawi Annual Economic Report 2014; Ministry of  Finance, Economic Planning and Development. 
Viewed at: http://www.finance.gov.mw/index.php?option =com_docman&task=cat_view&gid=87&Itemid=114 . 
41 Ministry of Finance and Development Planning (2011). Efforts to develop the tourism sector have also 
been articulated in the Po verty Reduction Strategy. 
42 World Bank (2010). 
43 Since October 2015, visa requirements apply to all citizens of those countries that require a visa from 
Malawi. The cost of a single-entry visa is US$75. WT/TPR/S/335 • Malawi 
 
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  REFERENCES 
FAO (2014), Technical note: Analysis of price incentives for tea in Malawi 2005–2013 . 
 Finmark Trust (2014), FinScope Consumer Survey on Malawi for 2014 .  
 
Gamula, Gregory E.T., Hui, Liu and Peng, Wuyuan (2013), "Development of Renewable Energy Technologies in Malawi", International Journal of Renewable Energy Technology Research . 
 
IMF (2012), Malawi: Poverty Reduction Strategy Paper . 
 
IMF (2015), Malawi – IMF Country Report No. 15/83 . 
 
ITC (2012), Malawi: Company Perspectives, An ITC Series on Non-Tariff Measures . 
 
Kamkwamba, W. (2010), The Boy who Harnessed the Wind . 
 
Malawi Confederation of Chambers of Commerce (2013), Malawi Business Climate Survey Report . 
 
Malawi Programme for Aflatoxin Control (MAPAC) (2013), Advancing Collaboration for Effective 
Aflatoxin Control in Malawi , Lilongwe. 
 
Marneweck, E. and Cohen, A. (2015), Quality Africa Network (PTY) Ltd, "Development of a 
Framework and Guidelines for Conducting Risk and Impact Assessment to Inform Technical 
Regulatory Decisions Within the Southern African Development Community (SADC); RIA Framework: Assessing the Impact of Technical Regulations in SADC" , Lilongwe. 
 
Ministry of Agriculture and Food Security (2011), Malawi Agricultural Sector Wide Approach . 
 
Ministry of Energy and Mining (2012), Mines and Minerals Policy of Malawi . 
 
Ministry of Finance, Economic Planning and Development (2014), Malawi Annual Economic Report 
2014. 
 
Ministry of Finance and Development Planning (2011), Malawi Growth and Development Strategy 
(2011-2016) , Lilongwe. 
 
Ministry of Finance (2010), The Malawi National Strategy for Financial Inclusion (2010-2014) . 
 
Ministry of Industry and Trade (1997),  Cooperative Development Policy , Lilongwe . 
 
Ministry of Industry and Trade (1998), Integrated Trade and Industry Policy , Lilongwe. 
 
Ministry of Industry and Trade (2009a), Private Sector Development Policy , "Promoting Private 
Sector", Lilongwe. 
 
Ministry of Industry and Trade (2009b), Private Sector Development Strategy , Lilongwe. 
 
Ministry of Industry and Trade (2011a), Draft 2011-2016 Strategic Plan , Lilongwe. 
 
Ministry of Industry and Trade (2011b), National Investment Policy , Lilongwe. 
 
Ministry of Industry and Trade (2012a),  Draft National Quality Policy , Lilongwe. 
 
Ministry of Industry and Trade (2012b), Malawi National Export Strategy, 2013-2018 , Lilongwe. 
 
Ministry of Industry and Trade (2012c),  Micro, Small and Medium Enterprises (MSME) Policy for 
the Republic of Malawi, Enabling Enterprise Growth in Malawi, 2012-2017 , Lilongwe. 
 
Ministry of Industry and Trade (2014), The Consolidated National Trade Facilitation Action Plan, 
Lilongwe. 
 
National Statistical Office (2015), Welfare Monitoring Survey 2014 . 
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- 64 - 
 
  Technical, Entrepreneurial and Vocational  Education Training Authority (TEVETA), Strategic Plan 
2013-2018 , Lilongwe. 
 
UNCTAD (2015), World Investment Report 2015 . 
 
UNDP, Government of Malawi – Malawi Bureau of Standards, "UNDP Programme – Country Malawi, 
Project Support Document" , Lilongwe. 
 
World Bank (2007), Malawi - Poverty and Vulnerability Assessment . 
 
World Bank (2010), Malawi Travel & Tourism – Realizing the Potential . 
 
World Bank (2014), Republic of Malawi – Diagnostic Trade Integration Study Update . 
 
WTO (2010), Trade Policy Review – Malawi , Geneva. 
 WT/TPR/S/335 • Malawi 
 
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  5  APPENDIX TABLES 
Table A1.1 Merchandise exports, includin g re-exports by product group, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011 2012 2013  2014  
Total (US$ million) 879  1,188  1,066  1,425 1,183 1,208  1,342  
 (% of total)  
Total primary products 89.9  91.4 90.9 89.6 93.2 91.8  76.5 
   Agriculture 89.9 90.5 79.7 80.8 81.9 80.4 73.4 
      Food 85.8  86.7 76.3 75.7 74.9 75.8  69.6 
         1212 Tobacco, wholly or partly stemmed/stripped  18.4 22.6 31.1 25.4 37.1 34.5 39.4 
         1211 Tobacco, not stemmed/stripped 48.7  39.8 22.7 14.1 16.2 11.8  7.8 
         0741 Tea 4.2 6.6 7.6 6.1 5.9 7.1 5.5 
         0611 Sugars, beet/cane, raw, solid, no added 
 flavour/colour 5.8 5.9 6.5 13.5 3.5 9.5  4.5 
         2221 Groundnuts 0.4 1.5 0.6 2.1 3.5 5.0 3.4 
         0542 Leguminous vegetables, dried, shelled  1.9 2.8 2.6 1.9 3.6 2.4  2.0 
         0577 Edible nuts fresh, dried 0.6 0.6 1.0 0.8 1.1 1.1 1.3 
         2222 Soya beans 0.0  0.4 0.4 0.2 0.3 0.7  1.1 
         0812 Bran, sharps and other residues 0.1 0.0 0.0 0.1 0.2 0.5 0.8 
         0813 Oil-cake, oilseed residues 0.0  0.1 0.1 0.1 0.4 0.4  0.8 
      Agricultural raw material 4.1 3.8 3.3 5.1 7.0 4.6 3.8 
         2631 Cotton (othe r than linters), not carded or combed  2.5 2.0 1.1 2.2 3.5 1.6  1.2 
         2632 Cotton linters 0.0 0.0 0.0 0.3 0.6 0.8 0.7 
   Mining 0.0  0.9 11.2 8.9 11.3 11.4  3.1 
      Ores and other minerals 0.0 0.8 11.1 8.8 11.2 11.4 3.1 
         2861 Uranium ores and concentrates 0.0  0.7 10.7 8.4 11.1 11.3  3.0 
      Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
      Fuels 0.0  0.1 0.2 0.1 0.1 0.0  0.0 
Manufactures 10.1 8.5 9.1 9.1 6.8 7.7 18.8 
   Iron and steel 0.0  0.3 0.2 0.1 0.0 0.1  0.4 
   Chemicals 0.8 0.7 1.5 1.2 0.6 1.1 2.1 
         5629 Fertilizers, n.e.s. 0.0  0.0 0.1 0.2 0.0 0.1  0.7 
         5621 Mineral or chemical fertilizers, nitrogenous  0.0 0.0 0.0 0.1 0.0 0.3 0.7 
   Other semi-manufactures 1.0  0.5 1.0 1.3 1.5 1.3  1.7 
   Machinery and transport equipment 1.8 2.4 2.5 2.9 1.8 2.3 11.9 
      Power generating machines  0.0 0.0 0.0 0.2 0.1 0.0  0.2 
      Other non-electrical machinery 0.6 1.2 1.4 0.6 0.7 1.2 9.0 
         7443 Derrick, cranes, mobile lifting frames, etc.  0.0 0.1 0.0 0.0 0.0 0.0  3.9 
         7232 Mechanical shovels, etc., self-propelled  0.0 0.0 0.1 0.1 0.0 0.1 1.7 
         7231 Bulldozers, angledozers, etc., self-propelled  0.0 0.4 0.0 0.1 0.2 0.2  0.7 
         Agricultural machinery and tractors 0.1 0.2 0.1 0.1 0.1 0.1 0.1 
      Office machines & telecommunication equipment  0.2 0.2 0.4 0.2 0.1 0.1  0.6 
      Other electrical machines  0.1 0.1 0.1 0.1 0.1 0.5 0.1 
      Automotive products 0.6  0.6 0.4 1.6 0.7 0.4  1.7 
         7821 Goods vehicles 0.1 0.2 0.2 0.6 0.2 0.2 1.4 
      Other transport equipment  0.3 0.2 0.2 0.2 0.2 0.1  0.3 
   Textiles 2.4 0.2 0.3 0.3 0.1 0.2 0.4 
   Clothing 3.0  2.5 1.8 1.2 0.5 0.9  0.5 
   Other consumer goods 1.0 2.0 1.8 2.2 2.2 1.9 1.8 
Other 0.0 0.0 0.0 1.3 0.0 0.5  4.7 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/335 • Malawi 
 
- 66 - 
 
  Table A1.2 Merchandise exports, includ ing re-exports by destination, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 879 1,188 1,066 1,425 1,183 1,208 1,342 
 (% of total) 
  America 8.3 9.4 17.8 14.9 16.2 19.1 7.6 
    United States 5.7 4.1 6.0 5.4 4.1 6.4 4.2 
    Other America 2.6 5.4 11.8 9.5 12.0 12.7 3.4 
      Canada 0.9 0.9 11.0 8.8 10.6 11.6 2.7 
  Europe 51.7 43.5 38.9 32.1 33.8 34.2 37.7 
    EU(28) 45.5 37.5 36.7 29.8 26.2 31.6 34.7 
      Belgium 13.0 17.5 12.4 6.5 7.2 8.3 12.8 
      United Kingdom 8.9 4.2 4.6 7.7 3.4 5.8 4.8 
      Germany 4.2 3.2 6.2 3.2 2.4 3.8 3.6 
      Portugal 3.9 2.4 1.7 1.7 2.3 3.9 2.6 
      The Netherlands 5.9 4.4 4.7 1.8 3.9 3.8 2.6 
      Poland 3.5 1.3 1.6 1.5 1.8 1.5 2.3 
      Spain 0.7 0.6 0.8 3.7 1.2 0.5 1.2 
    EFTA 4.1 4.5 1.3 1.3 7.0 1.2 1.9 
      Switzerland 4.1 4.4 1.3 1.3 7.0 1.2 1.9 
    Other Europe 2.1 1.5 0.8 1.0 0.5 1.4 1.0 
  Commonwealth of Independent States (CIS) 4.5 4.0 1.8 3.0 5.0 4.8 3.3 
      Russian Federation 2.8 3.0 1.1 2.1 3.9 3.5 2.0 
  Africa 26.7 32.3 31.5 38.1 27.1 25.7 39.9 
      Mozambique 2.7 5.4 3.4 3.2 2.8 2.6 9.7 
      South Africa 10.1 10.2 5.8 8.2 7.7 7.6 7.8 
      Zimbabwe 2.6 3.0 5.4 8.6 3.9 4.0 6.6 
      Egypt 2.9 6.2 9.2 4.4 4.7 0.7 4.5 
      Zambia 1.8 1.9 3.3 2.4 1.9 3.3 3.4 
      Kenya 0.8 1.2 1.8 5.2 2.1 2.7 2.8 
      United Republic of Tanzania 3.0 1.1 0.7 2.1 1.7 2.4 2.0 
  Middle East 0.2 0.6 0.3 0.6 2.9 2.8 2.3 
      United Arab Emirates 0.1 0.2 0.1 0.5 1.4 2.7 2.3 
  Asia 8.7 10.2 9.7 11.3 15.0 13.0 9.3 
    China 2.5 2.6 3.1 4.0 5.3 5.6 5.2 
    Japan 0.0 0.1 0.2 0.1 0.2 0.1 0.0 
    Korea, Rep. of 3.2 0.9 1.3 1.6 2.6 2.4 1.2 
    Other Asia 2.3 5.9 4.5 4.5 5.9 3.9 2.3 
      Philippines 1.0 2.3 1.3 1.3 0.9 1.2 1.1 
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source: UNSD Comtrade database. 
 WT/TPR/S/335 • Malawi 
 
- 67 - 
 
   Table A1.3 Merchandise imports by product group, 2008-14 
 (US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 2,204  2,022  2,173  2,428  2,330 2,845 2,774  
 (% of total)  
Total primary products 23.2  25.5 25.8 25.9 24.1 28.4 26.2  
   Agriculture 12.9 14.1 14.7 14.4 8.8 12.9 11.8 
      Food 12.0  13.1 13.6 13.2 7.6 11.4 9.8  
         1211 Tobacco, not stemmed/stripped 1.2 0.5 0.8 1.1 0.5 2.7 1.8 
         0411 Durum wheat, unmilled 2.3  1.7 1.6 2.2 0.9 2.3 1.5  
         0351 Fish, dried, salted  0.0 0.0 0.0 0.0 0.0 0.0 1.0 
      Agricultural raw material 0.8  1.0 1.1 1.2 1.3 1.5 2.0  
         2690 Worn clothing and other worn textile 
 articles, rags 0.7 0.9 1.0 1.1 1.1 1.3 1.8 
   Mining 10.3  11.4 11.0 11.5 15.2 15.5 14.5  
      Ores and other minerals 0.4 0.6 0.8 2.5 0.9 0.9 0.8 
      Non-ferrous metals 0.2  0.4 0.3 0.3 0.2 0.2 0.2  
      Fuels 9.7 10.4 10.0 8.7 14.1 14.5 13.5 
Manufactures 76.8  74.5 73.9 73.8 75.9 71.4 71.1  
   Iron and steel 3.0 3.1 3.4 3.3 3.3 4.1 5.9 
         6770 Rail and tram track construction material, 
iron/steel 0.0 0.0 0.0 0.0 0.0 0.5 2.3  
         6741 Flat-rolled products, iron/steel, zinc plated  1.4 1.2 1.6 1.5 1.4 1.1 1.4 
   Chemicals 27.4  23.0 24.5 24.8 32.2 29.7 26.4  
         5429 Medicaments, n.e.s. 2.6 3.9 2.2 4.4 6.8 5.6 5.8 
         5621 Mineral or chemical fertilizers, nitrogenous  10.4 4.5 6.0 5.6 8.0 7.4 4.8  
         5629 Fertilizers, n.e.s. 6.2 4.0 3.1 1.9 3.3 4.2 2.5 
         5541 Soap 0.9  1.3 1.2 1.4 1.5 1.3 1.6  
         5421 Medicaments containing antibiotics or 
 derivatives 0.6 0.3 0.2 1.2 0.3 0.6 1.4 
         5711 Polyethylene 0.9  0.7 1.1 1.2 1.3 1.1 1.1  
         5751 Propylene polymers or of other olefins  0.4 0.5 0.7 0.7 0.7 0.9 0.9 
   Other semi-manufactures 7.1  10.4 10.4 10.2 9.5 8.9 8.6  
         6612 Portland cement and similar hydraulic 
 cements 1.9 1.8 2.2 2.9 2.3 2.2 2.1 
   Machinery and transport equipment 26.9  26.2 23.7 24.1 21.9 19.9 21.1  
      Power generating machines  0.5 0.5 0.7 0.8 0.8 0.5 0.4 
      Other non-electrical machinery 12.9  7.9 7.4 6.9 7.8 7.5 8.6  
         7272 Other food-processing machinery and 
parts 0.2 0.3 0.6 0.6 0.3 0.6 1.2 
         Agricultural machinery and tractors 8.1  0.7 0.6 0.9 0.5 1.0 0.5  
      Office machines & telecommunication equipment  3.2 5.4 5.1 3.6 3.5 2.3 3.4 
      Other electrical machines  1.8 2.6 2.6 6.5 2.5 2.6 2.0  
      Automotive products 7.3 8.4 6.3 5.0 6.2 5.3 4.9 
         7812 Motor vehicles for the transport of 
 persons, n.e.s. 2.7 3.3 2.6 2.0 2.1 2.1 2.0  
         7821 Goods vehicles 2.0 2.6 2.1 1.7 2.1 1.4 1.4 
      Other transport equipment  1.2 1.5 1.5 1.2 1.0 1.7 1.8  
   Textiles 2.0 2.3 1.9 2.7 2.2 1.9 1.4 
   Clothing 0.6  0.9 0.9 1.0 0.8 0.7 0.7  
   Other consumer goods 9.8 8.6 9.2 7.7 6.0 6.2 7.0 
         8928 Printed matter, n.e.s. 4.1  2.9 5.0 2.7 1.5 2.3 2.3  
         8921 Printed books, pamphlets, maps, etc. 
 (excl. ad. material) 0.7 0.7 0.4 0.3 0.3 0.7 1.0 
Other 0.0  0.0 0.3 0.3 0.0 0.1 2.6  
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/335 • Malawi 
 
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  Table A1.4 Merchandise imports by origin, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 2,204 2,022 2,173 2,428 2,330 2,845 2,774 
 (% of total) 
  America 2.8 3.2 4.9 7.2 4.5 3.9 4.9 
    United States 2.0 2.6 2.9 5.3 3.5 2.6 3.4 
    Other America 0.7 0.6 2.1 2.0 1.0 1.2 1.5 
      Canada 0.2 0.3 0.6 0.3 0.3 0.6 0.9 
  Europe 16.2 15.7 16.2 14.9 17.5 16.7 12.6 
    EU(28) 10.8 13.6 13.7 12.6 14.6 14.1 10.3 
      United Kingdom 3.4 4.2 3.8 3.4 2.7 2.6 2.9 
      Germany 1.0 1.7 1.2 1.3 2.0 3.3 1.4 
      Belgium 0.4 0.3 0.5 0.5 0.9 0.7 1.3 
      Denmark 1.9 1.7 1.0 1.8 1.6 1.0 1.1 
      Italy 0.3 0.5 0.4 1.5 0.7 1.0 0.8 
    EFTA 5.3 1.8 2.1 2.0 2.6 2.2 2.0 
      Switzerland 5.3 1.7 1.9 1.7 2.1 2.0 2.0 
    Other Europe 0.1 0.3 0.3 0.3 0.3 0.4 0.3 
  Commonwealth of Independent States (CIS) 0.4 0.0 0.8 0.5 0.6 1.1 1.1 
      Russian Federation 0.1 0.0 0.4 0.4 0.5 1.0 1.0 
  Africa 61.3 60.0 45.5 41.4 42.2 44.3 41.9 
      South Africa 26.6 34.2 30.1 25.0 24.4 21.7 19.0 
      Mozambique 20.3 12.8 1.4 1.9 7.3 12.1 11.8 
      Zambia 3.1 3.6 5.5 4.5 3.4 4.6 4.0 
      United Republic of Tanzania 5.8 3.9 1.7 3.1 1.6 1.6 2.3 
      Kenya 2.5 2.0 2.3 2.5 2.3 1.4 1.4 
      Zimbabwe 1.7 1.9 1.5 1.4 1.2 1.3 1.2 
  Middle East 5.5 4.3 5.9 6.3 8.6 8.3 7.1 
      United Arab Emirates 5.0 4.0 5.0 4.7 5.0 6.3 5.4 
  Asia 13.8 16.9 26.8 29.7 26.6 25.7 32.4 
    China 3.3 5.9 9.1 9.3 10.8 9.3 10.0 
    Japan 1.5 0.9 2.9 2.1 2.6 2.9 4.4 
    Hong Kong, China 0.7 1.2 1.1 2.3 0.6 0.5 0.9 
    Korea, Rep. of 0.8 0.9 0.9 0.9 1.0 0.9 0.8 
    Singapore 0.3 0.4 1.2 0.5 0.3 0.2 0.8 
    Other Asia 5.8 6.6 10.0 13.6 10.3 10.8 14.4 
      India 4.8 4.7 7.6 11.5 8.2 7.8 11.8 
      Indonesia 0.7 0.9 1.1 1.0 1.1 1.4 1.5 
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source: UNSD Comtrade database. WT/TPR/S/335 • Malawi 
 
- 69 - 
 
  Table A4.1 Applied MFN tariffs, by ISIC Rev.2 category, 2015-16 
ISIC 
code Description Number 
of lines Simple 
average (%) Range 
(%) CVa Share of 
duty-free 
lines (%) 
 Total 5,675 12.7 0 - 200 1.0 31.7 
1 Agriculture, hunt ing, forestry & 
fishing 403 16.7 0 - 25 0.5 10.4 
11 Agriculture and hunting 308 16.6 0 - 25 0.6 11.4 
12 Forestry and logging 21 6.7 0 - 10 0.7 28.6 
121 Forestry 13 4.6 0 - 10 1.0 46.2 
122 Logging 8 10.0 10.0 0.0 0.0 
13 Fishing 74 19.8 0 - 25 0.4 1.4 
1301 Ocean and coastal fishing 66 19.4 0 - 25 0.4 1.5 
1302 Fishing n.e.c. 8 23.1 10 - 25 0.2 0.0 
2 Mining and quarrying 98 9.0 0 - 25 0.4 10.2 
21 Coal mining 4 0.0 0.0 0.0 100.0 
22 Crude petroleum and natural 
gas production 4 3.8 0 - 5 0.6 25.0 
23 Metal ore mining 23 10.0 10.0 0.0 0.0 
2301 Mining of iron ores 2 10.0 10.0 0.0 0.0 
2302 Non-ferrous ore mining 21 10.0 10.0 0.0 0.0 
29 Other mining 67 9.5 0 - 25 0.3 7.5 
2901 Mining of feldspar 32 9.7 0 - 10 0.2 3.1 
2902 Mining of fertilizer and chemical 
minerals 11 10.0 10.0 0.0 0.0 
2903 Salt mining 3 0.0 0.0 0.0 100.0 
2909 Mining and quarrying n.e.s. 21 10.2 0 - 25 0.4 4.8 
3 Manufacturing 5,173 12.4 0 - 200 1.0 33.7 
 31 Manufacture of food, beverages 
and tobacco 613 20.3 0 - 200 1.0 3.8 
 311 Food products 494 18.4 0 - 25 0.4 2.0 
 3111 Meat products 90 18.3 10 - 25 0.4 0.0 
 3112 Dairy products 22 18.2 10 - 25 0.4 0.0 
 3113 Fruit and vegetable canning 111 23.4 10 - 25 0.2 0.0 
 3114 Fish products 152 14.8 10 - 25 0.5 0.0 
 3115 Manufacture of oil and fats 
(veg. and animal) 52 13.8 0 - 25 0.7 19.2 
 3116 Grain mill products 33 20.3 10 - 25 0.3 0.0 
 3117 Manufacture of bakery products 12 25.0 25.0 0.0 0.0 
 3118 Sugar products 9 23.3 10 - 25 0.2 0.0 
 3119 Cocoa and chocolate 
confectionery 13 23.8 10 - 25 0.2 0.0 
 312 Other food products and animal 
feeds 65 16.5 0 - 25 0.6 18.5 
 3121 Other food products 56 17.9 0 - 25 0.5 14.3 
 3122 Manufacture of animal feeds 9 7.2 0 - 25 1.1 44.4 
 313 Beverages 47 21.8 0 - 25 0.3 2.1 
 3131 Distillation of spirits and 
alcohol production 26 21.0 0 - 25 0.4 3.8 
 3132 Manufacture of wines 13 23.8 10 - 25 0.2 0.0 
 3133 Manufacture of malt liquors 
and malt 4 17.5 10 - 25 0.4 0.0 
 3134 Soft drinks and mineral waters 4 25.0 25.0 0.0 0.0 
 314 Tobacco manufacturing 7 175.0 25 - 200 0.3 0.0 
 32 Textile, wearing apparel and 
leather industries 860 20.5 0 - 25 0.4 10.0 
 321 Textiles 672 19.3 0 - 25 0.5 12.8 
 3211 Textile spinning, weaving and 
finishing 385 16.5 0 - 25 0.6 21.3 
 3212 Made-up textile goods except 
wearing apparel 59 22.4 10 - 25 0.2 0.0 
 3213 Knitted and crocheted fabrics 149 25.0 25.0 0.0 0.0 
 3214 Carpets and rugs 21 25.0 25.0 0.0 0.0 
 3215 Cordage, rope, etc. 14 13.9 0 - 25 0.5 7.1 WT/TPR/S/335 • Malawi 
 
- 70 - 
 
  ISIC 
code Description Number 
of lines Simple 
average (%) Range 
(%) CVa Share of 
duty-free 
lines (%) 
 3219 Textiles n.e.c. 44 19.5 0 - 25 0.4 6.8 
 322 Manufacture of wearing 
apparel, except footwear 127 24.6 10 - 25 0.1 0.0 
 323 Leather products, except 
footwear and wearing apparel 48 25.0 25.0 0.0 0.0 
 3231 Tanning and dressing of leather 28 25.0 25.0 0.0 0.0 
 3232 Fur dressing and dying 6 25.0 25.0 0.0 0.0 
 3233 Leather products except 
footwear 14 25.0 25.0 0.0 0.0 
 324 Footwear, except vulcanized 
rubber or plastic footwear 13 25.0 25.0 0.0 0.0 
 33 Wood and wood products, 
including furniture 104 19.9 0 - 25 0.4 1.9 
 331 Wood and wood products, 
except furniture 80 18.4 0 - 25 0.4 2.5 
 3311 Sawmills and woodmills 50 18.1 10 - 25 0.4 0.0 
 3312 Wooden case containers and 
cane ware 14 21.8 10 - 25 0.3 0.0 
 3319 Wood and cork products 16 16.3 0 - 25 0.6 12.5 
 332 Manuf. of furniture & fixtures, 
except primarily of metal 24 25.0 25.0 0.0 0.0 
 34 Paper, paper products, printing 
and publishing 153 12.2 0 - 25 0.6 11.8 
 341 Paper products 122 12.1 0 - 25 0.6 6.6 
 3411 Pulp, paper and paperboard 77 10.3 0 - 25 0.5 10.4 
 3412 Containers, paperboxes, 
paperboard 9 13.3 10 - 25 0.5 0.0 
 3419 Articles n.e.s.(stationery) 36 15.7 5 - 25 0.5 0.0 
 342 Printing and publishing and 
allied industries 31 12.6 0 - 25 0.8 32.3 
 35 Chemicals, petroleum, coal, 
rubber, plastics 1,092 5.4 0 - 25 1.7 68.1 
 351 Industrial chemicals 681 1.5 0 - 25 2.7 85.9 
 3511 Basic industrial chemicals 515 0.5 0 - 25 5.5 95.7 
 3512 Fertilizers and pesticides 29 0.0 0.0 0.0 100.0 
 3513 Synthetic resins, plastic 
materials except glass 137 5.8 0 - 25 1.0 46.0 
 352 Other chemicals, incl. pharm. 250 10.1 0 - 25 1.1 50.0 
 3521 Paints, varnishes and lacquers 17 19.7 0 - 25 0.5 17.6 
 3522 Drugs and medicines 87 0.1 0 - 10 9.3 98.9 
 3523 Soaps 36 24.2 10 - 25 0.1 0.0 
 3529 Other chemicals n.e.s. 110 12.0 0 - 25 0.9 32.7 
 353 Petroleum refineries 27 6.3 0 - 20 1.0 33.3 
 354 Manuf. of miscellaneous 
petroleum & coal products 15 3.3 0 - 10 1.4 66.7 
 355 Rubber products 86 16.6 0 - 25 0.6 16.3 
 3551 Tyre and tube industries 26 17.1 0 - 25 0.5 3.8 
 3559 Rubber products n.e.s. 60 16.3 0 - 25 0.6 21.7 
 356 Manufacture of plastic products 
n.e.s. 33 20.6 0 - 25 0.4 3.0 
 36 Non-metallic mineral products 
except of petrol. & coal 176 14.5 0 - 25 0.6 9.7 
 361 Pottery and china 16 17.8 0 - 25 0.5 6.3 
 362 Manufacture of glass and glass 
products 69 17.2 0 - 25 0.5 10.1 
 369 Other non-metallic mineral 
products 91 11.9 0 - 25 0.6 9.9 
 3691 Structural clay products 17 14.7 0 - 25 0.7 23.5 
 3692 Cement, lime and plaster 9 10.0 10.0 0.0 0.0 
 3699 Non-metallic mineral products 65 11.4 0 - 25 0.6 7.7 
 37 Basic metal industries 382 9.4 0 - 25 0.6 14.9 
 371 Iron and steel basic industries 206 10.0 10.0 0.0 0.0 
 372 Non-ferrous metal basic 
industries 176 8.6 0 - 25 0.9 32.4 
 38 Fabricated metal products, 
machinery & equipment 1,602 8.8 0 - 25 1.2 49.3 WT/TPR/S/335 • Malawi 
 
- 71 - 
 
  ISIC 
code Description Number 
of lines Simple 
average (%) Range 
(%) CVa Share of 
duty-free 
lines (%) 
 381 Fabricated metal products, 
except machinery & equip. 248 15.6 0 - 25 0.6 11.3 
 3811 Manufacture of cutlery and 
hardware 75 17.1 0 - 25 0.5 2.7 
 3812 Metal furniture and fixtures 9 22.2 0 - 25 0.4 11.1 
 3813 Structural metal products 24 10.0 0 - 25 1.1 50.0 
 3819 Fabricated metal prod. except 
mach. & equip. n.e.c. 140 15.3 0 - 25 0.6 9.3 
 382 Non-electrical machinery incl. 
computers 545 3.3 0 - 25 2.1 77.4 
 3821 Engines and turbines 15 2.3 0 - 25 2.8 86.7 
 3822 Agricultural machinery 35 1.9 0 - 25 3.2 88.6 
 3823 Metal and woodworking 
machinery 108 1.0 0 - 10 3.0 89.8 
 3824 Special industrial machinery 147 0.6 0 - 25 5.7 95.9 
 3825 Office machinery 35 2.4 0 - 25 2.2 80.0 
 3829 Non-electrical machinery and 
equipment, n.e.s. 205 6.9 0 - 25 1.3 54.6 
 383 Electrical machinery apparatus, 
appliances & supplies 335 10.0 0 - 25 1.0 39.1 
 3831 Electrical motors and apparatus 80 3.8 0 - 25 1.5 62.5 
 3832 Radio, television and 
communication equipment 128 9.6 0 - 25 1.1 48.4 
 3833 Electrical appliances and 
houseware 25 22.0 10 - 25 0.3 0.0 
 3839 Electrical apparatus n.e.s. 102 12.4 0 - 25 0.7 18.6 
 384 Transport equipment 263 11.8 0 - 25 0.9 38.0 
 3841 Ship building and repairing 23 10.7 0 - 25 0.8 26.1 
 3842 Railway and tramway 23 0.0 0.0 0.0 100.0 
 3843 Motor vehicles 151 15.3 0 - 25 0.7 25.8 
 3844 Motorcycles et bicycles 28 9.8 0 - 25 0.9 32.1 
 3845 Aircraft manufacture 31 5.6 0 - 25 1.6 67.7 
 3849 Other transport equipment 
n.e.c. 7 13.6 0 - 25 0.8 28.6 
 385 Professional and scientific 
equipment 211 9.7 0 - 25 1.2 51.7 
 3851 Prof., scientif., measuring 
equipment 105 1.7 0 - 25 3.0 85.7 
 3852 Photographic and optical goods 54 11.3 0 - 25 0.9 35.2 
 3853 Watches and clocks 52 24.1 10 - 25 0.1 0.0 
 39 Other manufacturing industries 191 21.5 0 - 25 0.3 3.7 
 3901 Jewellery and related articles 20 20.8 0 - 25 0.4 5.0 
 3902 Musical instruments 18 23.9 5 - 25 0.2 0.0 
 3903 Sporting goods 26 21.2 0 - 25 0.4 15.4 
 3909 Other manufacturing n.e.c. 127 21.3 0 - 25 0.3 1.6 
4 Electrical energy 1 0.0 0.0 0.0 100.0 
a Coefficient of variation. 
Source: WTO Secretariat calculations, based on data provided by the authorities of Malawi. 
 
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