Malawi retains Agoa eligibility

Malawi has retained its eligibility for preferential access to the United States market under the African Growth and Opportunity Act (Agoa) in 2027 while 19 African countries face exclusion from the trade programme.

A report by Business Insider Africa lists Zimbabwe, South Africa, Uganda, Burundi and Rwanda among the countries that will lose access to Agoa preferences.

Malawi exports tea to the Agoa market. | Nation

Ministry of Industrialisation, Trade, Business and Tourism says Malawi intends to use its continued eligibility to support export diversification, value addition and manufacturing growth.

In a written response on Friday, the ministry’s spokesperson Patrick Botha said retaining eligibility comes at a time the country is pursuing increased production for export markets to narrow its trade deficit.

He said: “As Malawi, this means a lot to us, especially coming at a time when our emphasis is export diversification and production for the export market to narrow our trade deficit.

“With the enhanced collaboration with the private sector and a close working relationship with all relevant ministries, departments and agencies, we believe this will not be just another opportunity that passes us by.”

Data show that Malawi is ranked 15th among 35 eligible African countries in Agoa preference utilisation over the past 23 years, having exported goods worth roughly $1.55 billion (about K2.7 trillion) to the United States since the programme’s inception in 2000.

Malawi’s exports to the US comprise mainly agricultural commodities, including tobacco, sugar, tea and nuts.

Malawi Confederation of Chambers of Commerce and Industry business environment director Lucky Mfungwe said in an interview that countries excluded from Agoa will experience reduced export performance, foreign exchange earnings, employment and economic activity.

He, however, said Malawi can increase its exports to the US market through product diversification, value addition and increased production capacity.

But Mfungwe said achieving sustained export growth will require investment in agricultural modernisation, irrigation, agro-processing, energy generation, transport and logistics infrastructure.

He said: “The realisation of these opportunities will depend on Malawi’s ability to substantially increase its productive capacity.

“Achieving sustained export growth will require large-scale investment in resilient and efficient production systems capable of withstanding climatic, economic and market-related shocks.”

Mfungwe also said Malawi should pursue market diversification through the African Continental Free Trade Area, a market of more than 1.3 billion people and $3 trillion in gross domestic product, to reduce reliance on preferential trade arrangements.

Agoa was last renewed in 2015 and even with the introduction of the bipartisan measure, the preferential trade agreement’s future was still uncertain due to major changes in US trade policy concerning Africa and other regions.

Before the expiry of the trade pact in September 2025, Malawi exports to the US were duty-free.

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