Trade And Investment Between Malawi And Mozambique
Trade and Investment between Malawi and Mozambique is an inevitable aspect of the cooperation between the two countries as the two countries shares more than 1500 Kilometers of Boundary Lines, and therefore there is a lot of Intra Trade between the people of the two countries, as well as informal, and most importantly formal trade.
Malawi and Mozambique had its first Trade Agreement signed on 23rd October, 1984. The Agreement considering the establishment of the General Agreement of Co-operation between the two countries, signed in Blantyre, The Republic of Malawi, on 23rd October 1984, in particular article seven (VII), creates a sound basis for the development of co-operation in the field of trade. The Articles of the agreement covers the followings;
- Most-favoured Nation Treatment
- Import and Export Permits
- Certificates of Origin
- Temporary Importation and Exportation
- Basis of Transactions
- Settlement of Business Disputes
- Trade Fairs and Exhibitions
- Methods of Payment
- Border Trade
- An Annex of Goods to be Exported by the two Countries
Subsequent Bilateral Agreements, and Memoranda of Understanding on Trade and Investment have been entered into between the two Governments, as well as at sector level. A Bilateral Agreement signed on 28th December 2005 between the two Governments also cemented the cooperation between the two Governments in the sector of trade, and covers the following benefits to the business between Mozambique and Malawi:
The following are the benefits to businesses:
- Free import duties for goods grown, produced and manufactured from contracting parties resulting in increased trade between the contracting parties.
- No quantitative restrictions competent authorities for both contracting parties shall permit the import and export, free of import duties, taxes and other similar levies or charges, not related to the payment for service, of the following goods;
- samples of goods and publicity obtained for orders and for advertising purposes
- for experiments and research activities
- for the purposes of trade fairs and exhibitions
- for effecting repairs and which are re-exported
- Facilitation of transit trade to or from a contracting party to or from a third country
- Contacting parties agree to participate in each other’s trade fairs and exhibitions, trade promotions in their respective territories
- To furnish each other, on request, with all necessary information concerning the possibilities of supplying goods originating from their respective countries
- Trade promotion organisations shall cooperate and exchange information with a view of promoting and facilitating trade
- Cooperation in curbing smuggling to bring confidence to the business communities of the contracting parties.
Mozambique, and Malawi also significant have investments in Infrastructure in the Transport and Energy Sector specifically the Nacala Railway Line under the Nacala Corridor Development Project which stretches from Tete Province in Mozambique through Malawi to the Port of Nacala. Malawi and Mozambique are finalizing the implementation of the Power Interconnection Project which will connect Malawi to the Southern African Power Pool (SAPP).
The two Governments, and its citizens continue to cooperate in different sectors of business in order to achieve an Agreement which would include Trade in areas such as:
- Exports and Imports through mainly the Beira and Nacala Ports
- Agricultural Commodities Trade
- Logistics and Transport along the Beira Corridor, as well as Nampula, and Quelimane Provinces.
- Supply of Finished Products (Poultry, Meats, Cooking Oil, Plastics, Sugar, Rice, Maize Flour, and other consumables)
More information on the Bilateral Agreement between Malawi and Mozambique can be found on the following link: