By Abdul Rahman Suagibu –
NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- In Malawi, dichotomy between the value of a country’s imports and exports is projected to worsen by 16.4% in 2019 the latest Annual Economic Reports show.
Recent Annual Economic Report indicates that, it is a show to an improved trade balance which the country recorded in 2018 to $1.42 billion from $1.31 billion. This year’s Annual Economic Report government said, the projected trade balance is thus, all values of traditional export products are anticipated to go down in 2019.
For example, Tobacco, is projected to take in $502 million down from $516 million while earnings from sugar, cotton, coffee and suitable to be eaten nuts are also estimated to fall in the year.
Precisely, to think with pleasure and excitement about the trade balance; Malawi’s imports will make an addendum by 4.9% based on statement about what will happen in the future increase in the country’s main import products.
“Petrol and petrol products that are estimated to go up by 4% while fertilizer imports are expected to increase by 5%. But the use in imports volumes of main imports products have been subdued by stable prices,”
The trade balance of Malawi has been larger in degree irrespective of various policy interventions to narrow the trade-deficit a negative balance of trade in which a country’s imports exceed its exports.
Ben Kaluwa – Chancellor College Economic Professor noted, unless Malawi produce and trade in goods that have gone through value addition, it will be difficult to reduce the trade deficit.
“In the absence of significance value-adding activities, Malawi will invariable continue to be reduced to a net exporter of jobs to the rest of the world.
“As you are aware to a large extent Malawi is import dependent and therefore; due to the balance of payments deficit, subject to high input costs rendering our products uncompetitive on the international market,” he noted.
Ministry of Industry, Trade and Tourism spokesperson – Mayeso Msokera is also on record having said the ministry will continue to implement policies and strategies to narrow the trade gap, among others.
He lamented that, the main focus is to build the export readiness of Malawian exporters and develop regional and global value chains, promoting entrepreneurship with emphasis on micro, small and medium enterprises and women and youth entrepreneurs as well as addressing critical enables and cross-cutting issues related to exports such as energy, transport, market intelligence and trade facilitation.
For New Africa Business News Abdul Rahman Suagibu Reports, Africa Correspondent
AFRICA’S MOST READ AND FASTEST GROWING GLOBAL NEWSPAPER – www.newafricabusinessnews.com