Honorable Sosten Gwengwe M.P. Meets with UNCTAD’s Rebeca Grynspan in Geneva: A Strategic Dialogue on Malawi’s Trade Development

Geneva, Switzerland

Honorable Sosten Gwengwe M.P., Malawi’s Minister of Trade and Industry, held a key bilateral meeting with Ms. Rebeca Grynspan, the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), on the sidelines of the recently concluded World Trade Organization (WTO) Malawi Trade Policy Review in Geneva.

The meeting provided a crucial platform for discussions on enhancing Malawi’s trade capacity and addressing the economic challenges faced by the country in a rapidly evolving global market.

The dialogue centered on several strategic areas aimed at advancing Malawi’s position in international trade. Trade facilitation, capacity building, and digital transformation were among the key themes, as the parties explored potential avenues to strengthen Malawi’s ability to compete in the global marketplace.

These discussions come at a time when Malawi is actively seeking to diversify its economy and increase its resilience in the face of external shocks.

One of the primary topics of conversation was the ongoing implementation of the Automated System for Customs Data (ASYCUDA), a vital component of Malawi’s efforts to modernize its customs operations. UNCTAD emphasized the importance of the upcoming validation workshop in Lilongwe, where the details of the ASYCUDA upgrade and its broader trade facilitation measures will be finalized.

Malawi’s active participation in this process is expected to enhance the efficiency of its customs services, a key factor in streamlining trade processes.

Ms. Grynspan highlighted the success of similar programs in other countries, citing Angola as a case study, where ASYCUDA contributed to a 44% increase in customs revenue over a five-year period. Based on this experience, UNCTAD proposed a comprehensive trade facilitation program for Malawi, which would include key components such as trade policy reform, SME development, and capacity building, with a proposed budget of $15 million to be implemented from 2025 to 2035.

This initiative is designed to significantly improve the efficiency of Malawi’s trade infrastructure, ultimately fostering a more competitive and streamlined trading environment.

Acknowledging the unique challenges faced by Least Developed Countries (LDCs) like Malawi, Ms. Grynspan drew attention to the current economic difficulties, particularly the national debt crisis, which has led the International Monetary Fund (IMF) to classify Malawi as being in “distress.” Despite these hurdles, she commended Malawi’s resilience and the positive strides it has made in building its trade capacity. She stressed the importance of continuous international support and strategic planning to help Malawi overcome these challenges and enhance its trade competitiveness.

The meeting also underscored the role of the Malawi Investment and Trade Centre (MITC) in promoting renewable energy opportunities. Ms. Grynspan noted that UNCTAD has been supporting this sector, with consultations underway to explore further opportunities for growth. She also commended the Ministry of Trade and Industry’s efforts to drive e-commerce development, recognizing it as a vital step toward modernizing Malawi’s economy and integrating it into the global digital marketplace.

Further discussions addressed Malawi’s VAT reform, with a focus on improving the country’s VAT-to-GDP ratio, which currently stands at 14%. Both parties recognized the importance of targeted reforms aimed at increasing government revenue and supporting sustainable economic growth. UNCTAD reiterated its commitment to providing technical assistance to Malawi, particularly in strengthening the capacity of the Malawi Revenue Authority (MRA). This would include training programs at both the ICT and user levels to ensure the successful implementation of the ASYCUDA upgrade and improve customs operations.

Honorable Sosten Gwengwe expressed his appreciation to Ms. Grynspan and UNCTAD for their continued partnership and support of Malawi’s trade and economic development efforts. He reaffirmed the Government of Malawi’s commitment to implementing policies that will enhance trade facilitation, attract investment, and strengthen Malawi’s position in both regional and international markets.

As Malawi looks to the future, the collaborative efforts with UNCTAD and other international partners are expected to play a pivotal role in transforming the nation’s economic landscape. Through these strategic initiatives, Malawi aims to drive sustainable growth, improve trade efficiency, and ultimately uplift the livelihoods of its citizens.