Export Commodities in Malawi | ||
Malawi produces a wide range of export products. Tobacco, tea and sugar account for over 80% of Malawi’s domestic exports. However, as a result of export diversification, a number of non-traditional products have been developed for export. These non-traditional products fall into three categories namely, agriculture, manufactured goods and other products. Agriculture will still constitute a significant proportion of the country’s economy. The following highlights export opportunities for some selected products in the major markets. Tobacco Tobacco is Malawi’s biggest foreign exchange earner, accounting for 60 percent of the total domestic export revenue. Malawi’s tobacco is also renowned for its texture as ideal cigarette filler. Malawi is the world’s biggest producer of barley tobacco and about 75 percent of the Malawian population is dependent on tobacco farming.
Chillie Sauce It is of the popular products that Malawi produces for both the regional and export markets. The sauces are marketed in different flavors suitable for a variety of dishes. Currently chilli sauce is exported to South Africa, Germany and the United Kingdom.
Coffee Malawi produces Arabica Coffee primarily for the export market. It is grown by both estates and smallholder farmers. With the establishment of Coffee Association of Malawi (CAMAL), production of high quality washed coffee is estimated to increase. There is also scope for investment in instant coffee production. Major export markets are Germany, the US and South Africa.
Tea Malawi is the second largest producer of tea in Africa from Kenya and the crop is Malawi’s second largest export crop after tobacco and is produced mostly on estates. About 16,000 ha (40,000 acres) are in tea plantations, mainly in the Mulanje and Thyolo districts. Malawi is the pioneer of tea growing in Africa, with production first starting commercially in the 1880s Mulanje. Malawi grows clonal type of tea that is used to blend with other teas.
Wheat It is an important crop both for cash and food. It is grown mostly under residue moisture and rainfall showers in selected areas of the country. The demand for wheat is high. Current production is around 4,605 tonnes per annum while total grain requirement is estimated at around 30,000 tones.
Vegetables Vegetables are a source of mineral salts and vitamins. Favorable climatic conditions make it possible to grow vegetables widely in the country. Despite this, vegetables are in short supply during certain times of the year. The erratic supply of vegetables creates a shortfall which necessitates the country to import vegetables from neighbouring countries such as South Africa particularly for exotic vegetables. The most common varieties grown in Malawi and which have export potential are; French beans, okra, tomatoes, onions, asparagus, baby cabbages, eggplants, lettuce, sweet corn and mushrooms (oyster and botton).
Pulses They comprise beans, chick peas, pigeon peas, and ground beans, black and green grams. Some of the pulses are used as a basic ingredient for dhal an important source of protein and a delicacy for people of Asian origin as it is affordable and a substitute for animal meat.
Cotton It is traditionally an important cash crop in Malawi and support over 200,000 farm families. To boost its production for export, government has set aside funds to enable farmers access farm inputs. It is projected that production could easily reach 100,000 tones mark as a result of an increased uptake, investment and yields.
Sugar It is a source of foreign exchange after tobacco and tea. Excellent climatic conditions and good soil coupled with irrigation from secure water sources are ideal for current cultivation of high yielding quality cane. Taking advantage of regional and multilateral arrangements Malawi sugar continues to maintain a strong market presence within the region, in the US and the European Union.
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The Malawi Government instituted export incentives in the following areas: For establishing operations in export processing zones (EPZ) For manufacturing under bonds Exporters are entitled to the following privileges:
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