Chakwera hints on export enhancement policies

President Lazarus Chakwera has reaffirmed his administration’s commitment to strengthening Malawi’s export capacity through strategic policy interventions.

Speaking on Thursday at the launch of the 34th International Trade Fair in Blantyre, Chakwera highlighted the critical need to bridge the gap between exports and imports to stimulate economic growth and reduce the country’s dependency on foreign goods.

“We are dedicated to creating an environment that fosters export growth. By addressing the trade deficit, we can ensure a more robust economy that supports sustainable development,” President Chakwera stated.

He emphasized the importance of engaging with the private sector to achieve these goals, a sentiment echoed by the minister of trade, Sosten Gwengwe.

“The President has extended an olive branch for discussions. We believe in engagement, consultations, and avoiding surprises in policy matters especially regarding revenue and tax policies.

“Our aim is to ensure that the private sector is fully involved in shaping policies that impact them,” Gwengwe said.

He also addressed the implementation of a new system to monitor exports and ensure proper revenue reconciliation. He acknowledged the challenges faced by some exporters accustomed to the manual system but expressed confidence in the benefits of the new approach.

“The RRPM system provides constant access to export data, helping us track how much has been exported and remitted back within the prescribed period. This transparency is essential for improving compliance and ensuring that export revenues contribute to the national economy,” he explained.

Representing the private sector, President of the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Wisely Phiri highlighted the challenges faced by both SMEs and larger corporations.

He criticized the high tax burden on profitable companies and the impact of these policies on foreign investment.

“An additional 10% tax on companies posting above K10 billion in profit makes Malawi one of the most expensive destinations for foreign investors. This policy needs re-evaluation to attract significant investments necessary for large-scale industrial development.

“New SMEs face taxes that can exceed 50% when combined with VAT and income tax. This high tax burden discourages entrepreneurship and growth. We propose that the government reconsider these taxes especially the withholding tax to encourage more businesses to enter the formal economy and contribute to national revenue,” he suggested.

The 34th International Trade Fair is being observed under the theme Boosting Malawi’s export capacity through enhanced production.