Trade between Malawi and Tanzania reached US$98.2 million in 2024, up from US$86.5 million in 2021, officials said, highlighting deepening economic ties between the two southern and eastern African neighbours.
The figures were presented in Lilongwe during the signing of a Simplified Trade Regime (STR) agreement aimed at easing cross-border commerce and encouraging small-scale traders to operate within formal channels.
Tanzania’s Minister of Industry and Trade, Judith Salvio Kapinga, described the signing as a “historic occasion for both nations,” saying the agreement would help unlock untapped trade and investment potential.
According to Tanzanian data, exports to Malawi increased from US$64 million in 2021 to US$77.7 million in 2024, driven mainly by manufactured goods, food products and consumer items. Over the same period, Tanzania’s imports from Malawi declined from US$22.5 million to US$20.5 million, reflecting narrower export diversification on the Malawian side.
Kapinga said the growth in bilateral trade had been encouraging but stressed that significant opportunities remained in value addition, agro-processing and cross-border investment partnerships. She noted that many traders, particularly small-scale operators, still rely on informal routes due to complex customs procedures and high compliance costs.
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The newly signed STR seeks to address these constraints by simplifying customs documentation, reducing administrative barriers and standardising procedures at border posts. Officials said the framework would make it easier for traders to clear goods, lower transaction costs and improve transparency.
Authorities also highlighted the social dimension of the agreement. Kapinga said the regime is expected to improve safety and dignity for women and youth engaged in cross-border trade, groups that often dominate informal commerce but face harassment and insecurity at border crossings.
The two countries share long land borders and are part of regional integration initiatives under the Southern African Development Community (SADC) and the East African Community (EAC), positioning them as natural trade partners. However, infrastructure gaps, non-tariff barriers and limited access to finance have historically constrained trade flows.
Officials in Lilongwe said the STR would also contribute to strengthening food security and livelihoods in border communities by improving the flow of agricultural products and basic goods. Malawi and Tanzania both rely heavily on agriculture, and smoother trade is expected to reduce price volatility and post-harvest losses.
The agreement comes as African governments push to formalise informal trade and boost intra-African commerce under the African Continental Free Trade Area (AfCFTA). While the STR is bilateral, officials said it aligns with broader continental efforts to lower barriers and integrate regional markets.
Both governments said they would establish joint monitoring mechanisms to ensure effective implementation of the agreement and translate policy commitments into tangible gains for traders and businesses.
Trade between Malawi and Tanzania has been steadily increasing over the past decade, reflecting stronger economic ties and regional integration efforts in southern and eastern Africa. According to official data, bilateral trade rose from US$86.5 million in 2021 to US$98.2 million in 2024, representing a growth of 13.5%. Tanzania has historically been Malawi’s largest trading partner within the East African region, supplying manufactured goods, food products, consumer items, and industrial inputs. Malawi’s exports to Tanzania, meanwhile, have focused on agricultural produce, raw materials, and processed food items, though they remain relatively limited in value compared with Tanzanian exports.
The two countries share long land borders and benefit from regional economic frameworks, including membership in the Southern African Development Community (SADC) and the East African Community (EAC). These memberships have encouraged cooperation on customs procedures, transport infrastructure, and trade facilitation. However, cross-border trade has often faced challenges due to bureaucratic hurdles, fragmented customs documentation, and infrastructure gaps at border posts, which have particularly affected small-scale traders. Women and youth, who make up a large portion of informal traders in the border regions, have been disproportionately impacted by these constraints.
The signing of the Simplified Trade Regime (STR) Agreement between Malawi and Tanzania aims to formalize and streamline cross-border commerce. The agreement simplifies customs documentation, reduces administrative barriers, and encourages traders to operate through formal channels. Beyond economic benefits, the STR is designed to improve social outcomes, including the safety, dignity, and livelihoods of informal traders, particularly women and youth, who are vital to local economies.
The STR is expected to enhance food security in border communities by improving access to agricultural inputs, reducing post-harvest losses, and facilitating a steady flow of essential goods. It also supports efforts to promote value addition, agro-processing, and investment partnerships between the two countries.
Overall, the STR aligns with broader African initiatives such as the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade, reduce non-tariff barriers, and create a more integrated regional market. By formalizing informal trade and improving regulatory clarity, Malawi and Tanzania aim to strengthen economic growth, diversify trade portfolios, and enhance regional resilience in the face of global economic challenges.
