Powering Malawi’s Growth: Harnessing Intra Africa Trade Opportunities

Key Business Points

• Intra-African trade is on the rise, with the African Continental Free Trade Area (AfCFTA) aiming to create a market of over 1.3 billion people and a combined GDP of $3.4 trillion, presenting opportunities for Malawian businesses to expand.
• Industrialisation is crucial for broad-based growth, and the African Union Development Agency (AUDA)-Nepad is promoting regional integration to enhance private sector-led production and ease of doing business, which can benefit Malawi’s economy.
• AfCFTA implementation can increase intra-African trade by up to 110 percent, lift millions out of poverty, and create decent jobs, making it a game-changer for Malawi’s business community.

The African continent is experiencing significant economic growth, with intra-trade being a key driver. The African Union Development Agency (AUDA)-Nepad has reported a 16 percent increase in intra-Africa exports, highlighting the importance of industrialisation in promoting regional integration. According to AUDA-Nepad’s CEO, Nardos Bekele-Thomas, industrialisation is essential for broad-based growth, and identifying growth pillars and supply chains at national, regional, and continental levels is critical.

The African Continental Free Trade Area (AfCFTA) is a single biggest trading bloc on the continent, bringing together all 55 member states in an intra-African continental free trade area. If fully implemented, the AfCFTA could leverage intra-African trade, increase trade among member states by up to 110 percent, and lift millions out of poverty. As AfCFTA Secretary General Wamkele Mene noted, countries have made progress in eliminating and reducing barriers to intra-Africa trade and investment, and the objective remains creating a single market in the best interest of all.

The impact of the AfCFTA is expected to be significant and transformative, ensuring the creation of decent jobs, inclusive growth, and sustainable development. As Mkulu akulu (big entrepreneurs) in Malawi, business owners and entrepreneurs should be aware of the opportunities and challenges presented by the AfCFTA and honor the African Union’s efforts to promote regional integration. With the Private Sector playing a crucial role in driving economic growth, Malawian businesses should be chikondi (prepared) to take advantage of the opportunities presented by the AfCFTA and komabe (work together) to promote intra-African trade and investment.

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