Malawi is facing ongoing foreign exchange losses due to a persistent imbalance between imports and exports, especially within its value chains.
This concern was highlighted on Thursday during the 16th Eminent Speaker Series (ESS), which focused on advancing agricultural transformation through policy reforms and private sector investment.
In an interview, Jonathan Saidi, Vice President for Technical Expertise at the Alliance for a Green Revolution in Africa (AGRA), noted that the country’s heavy dependence on traditional crops like maize and tobacco is restricting its ability to generate adequate foreign exchange.
He added that Malawi currently imports goods worth around 3.6 billion US dollars, while exports stand at approximately 1.8 billion dollars, covering only half of the country’s import bill.
Saidi stressed the urgent need for diversification beyond maize and tobacco, pointing to alternative value chains such as soya beans and groundnuts as a practical solution.
He noted that these crops have strong market potential both locally and internationally and could significantly boost export earnings.
“If we invest more in value addition for crops like soya beans and groundnuts, Malawi can reduce its foreign exchange deficit and ease challenges such as fuel shortages. The country has the potential to strengthen its economy through diversified agricultural exports,” said Saidi.
Mwapata Institute Executive Director William Chadza also emphasized the importance of coordinated efforts among government, the private sector, and development partners to drive economic growth.
He said stakeholders must work together and prioritize high-potential value chains capable of generating meaningful returns.
“There is a need for all players, government, private sector, and donors, to collaborate and focus on one strategic area that can deliver real economic benefits,” he said.
Chadza observed that although Malawi is making some progress, development remains slow, with most notable gains coming from the private sector.
“As a country, we are making strides, but progress is still limited. It is mainly the private sector that is performing well, processing products through factories using commodities like soybeans and groundnuts. This is the area we need to strengthen,” he added.
Board Chairperson of the Mwapata Policy Institute, Professor Richard Mkandawire, said Malawi already has several continental frameworks, policies, and interventions aimed at guiding development at the local level.
However, he noted that a key challenge lies in effectively translating these frameworks into practical action on the ground.
“We need to ensure that all stakeholders are aligned, driving implementation together, and speaking with one voice. Achieving this requires strong government commitment,” said Professor Mkandawire.
He further highlighted the need for the National Planning Commission to take a leading role in coordinating efforts between the public and private sectors to ensure cohesive and effective implementation.
Mkandawire also emphasized the importance of identifying strategic value chains that can stimulate economic growth and attract investment.
