Key Business Points
- Malawi’s business community faced numerous economic challenges in 2025, including high inflation and forex scarcity, which negatively impacted customs clearing and freight handling businesses.
- The lack of foreign exchange affected importers’ ability to operate at full capacity, leading to reduced business for customs clearing agents, with some firms scaling down or closing.
- Despite the challenges, industry players remain optimistic about the outlook for 2025 and beyond, emphasizing the need for support to help indigenous businesses thrive.
The year 2025 has been marked by economic volatility, with rocketing inflation and an unstable exchange rate caused by a severe forex scarcity. This has had a significant impact on the supply chain of essential commodities, including fuel. According to the Indigenous Customs Clearing and Forwarding Agents (Iccafa), these challenges, combined with structural issues and policy inconsistencies, have taken a toll on freight handling and customs clearing businesses. Iccafa Treasurer General, McWilliams Mhone, noted that the low forex availability has been a major hurdle, affecting importers’ ability to operate at full capacity and, in turn, impacting customs clearing businesses.
Mhone, who is also the proprietor and CEO of Universal Freight Solutions, stated that while some businesses managed to make headway amidst the volatility, growth was affected for most. Unfortunately, some firms had to scale down or close shop due to the challenges. Despite these difficulties, the industry remains committed to curbing smuggling and contributing to the country’s economic development. The outlook for 2025 and beyond looks promising, with industry players remaining upbeat about the future. As Mhone emphasized, there is still a need for support of indigenous businesses to thrive, which is essential for the growth of Malawi’s economy.
In November, Iccafa members gathered for their annual conference in Mangochi, where they discussed industry trends and prospects. The meeting, held under the theme ‘The Role of Customs Brokers in Trade Facilitation’, brought together key players in the industry and other sectors of the economy. As the industry moves forward, it is crucial for businesses to kutengana na mafuta (work together) to overcome the challenges and capitalize on opportunities. By doing so, Malawi’s business community can pangana malonda (move forward) and contribute to the country’s economic growth and development. With the right support and mindset, indigenous businesses can kumwera (grow) and thrive, driving tsogolo lathu (our future) forward.
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