Trade deficit widens to K405 billion in September

Malawi’s trade deficit widened by 21.3 percent to $231.3 million (K405 billion) in September 2026, as export earnings declined sharply.

At the same time, the country’s import bill continued to rise.

This is according to latest statistics.

Figures contained in the National Statistical Office (NSO) September 2026 International Merchandise Trade Statistics Bulletin show that the deficit increased from $190.7 million in September 2025, as the exports rate fell by 22.9 percent while the imports rate increased by 2.8 percent.

While the country earned $106.1 million (K185.8 billion) from exports during the month, down from $137.7 million in the corresponding period last year, the import bill rose to $337.4 million (K590.8 billion) from $328.4 million.

The figures mean that exports covered only 31.5 percent of the value of imports, highlighting the imbalance between what Malawi earns from international trade and what it spends on imported goods.

Meanwhile, fuel imports contributed significantly to the import bill, as petrol and diesel accounted for a combined $76.9 million, representing 22.8 percent of total imports.

The trade deficit also worsened on a month-on-month basis, increasing by 17.1 percent from $197.5 million in August 2026, as the exports rate declined by 30.7 percent to $106.1 million.

Economist Velli Nyirongo said Malawi needed to reduce its heavy reliance on imports by strengthening domestic production capacity, particularly through investment in agriculture, manufacturing and agro-processing.

“There is also a need to improve access to affordable financing, reliable electricity, transport infrastructure and foreign exchange for businesses,” Nyirongo said.

He said the country should also shift towards exporting value-added products instead of relying mainly on raw materials.

Meanwhile, tobacco, which remains Malawi’s major export earner, accounted for 68.4 percent of total export earnings in September, generating $72.6 million in the month.

Agriculture policy analyst Leonard Chimwaza said the figures demonstrated that the country’s export diversification drive had not received the attention it required.

“Tobacco has always been the main forex earner. If we could have an export drop on tobacco, then we could conclusively say that we are diversifying,” Chimwaza said.

He said Malawi had not invested sufficiently in other strategic agricultural value chains, including cotton, legumes, coffee, roots and tubers and pepper.

Agriculture policy think-tank Mwapata Institute Executive Director William Chadza warned that tobacco market volatility and foreign exchange pressures made diversification increasingly important.

“There is a need to prioritise, focus and support some of these value chains,” Chadza said.

Meanwhile, Ministry of Trade spokesperson Patrick Botha has said government policies have not failed, arguing that the country is making progress in improving export volumes

“It is high time we actually intensified value addition, or complete processing of our value chains, so that when we are pushing products for the external market, they will be competitive and fetch a high value,” he said.