Simplifying Trade: Overcoming Customs Clearing Challenges to Fuel Malawi’s Economic Growth
Key Business Points
- Infrastructure challenges and unmanifested cargo are delaying customs clearing at Mwanza One-Stop Border Post, affecting trade facilitation and impacting business operations.
- The average clearance time for imports is one day and six hours, while exports take nine hours, highlighting the need for streamlined processes to enhance trade efficiency.
- Lack of cargo scanners and unmanifested goods are major contributors to delays, emphasizing the importance of investing in technology and compliance to facilitate smooth trade.
The recent Time Release Study has shed light on the challenges facing trade facilitation at Mwanza One-Stop Border Post, a critical hub for Malawi’s business community. Infrastructure challenges, including the lack of electronic cargo scanners, are significant contributors to delays in customs clearing. Consultant Khwima Singini presented the findings, which indicate that imports take an average of one day and six hours to clear, while exports take nine hours. These delays can have a ripple effect on businesses, impacting their ability to operate efficiently and effectively.
The study also highlights the issue of unmanifested cargo, which can lead to delays and additional costs for businesses. Malawi Revenue Authority (MRA) commissioner for customs Cornelius Kakwesa noted that some drivers carry extra cargo without declaring it, which can cause difficulties in clearing the shipment. This emphasizes the need for compliance and risk management to ensure that goods are properly declared and cleared.
The Professional Drivers Union of Malawi has called for training for drivers to address some of the issues contributing to delays. Additionally, the lack of parking space on the Mozambican side of the border has led to drivers waiting on the Malawi side, further exacerbating delays. MkandJD tested kudzodzi (there is a need for continuous improvement) in trade facilitation, and the study’s findings will enable stakeholders to work together to resolve some of the issues hindering trade efficiency.
The Ministry of Industrialisation, Business, Trade and Tourism has welcomed the study, noting that it will help stakeholders to identify areas for improvement and work together to enhance trade facilitation. The project, funded by the World Bank, aims to improve trade efficiency and increase revenue at the Mwanza One-Stop Border Post. With the expected increase in customs monthly revenue from K24 billion to K26 billion, businesses can look forward to Increased kuyenda masiku (better trade facilitation) and Tukwendere ku bwalo (growth opportunities) in the region.
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