Tanzania and Malawi are seeking to transform their trade relationship by expanding local processing and regional value chains, with $6 million in immediate export opportunities identified.

The issue was at the centre of the third Malawi-Tanzania Investment and Trade Forum, held in Dar es Salaam from September 7 to 9. Tanzania currently exports goods worth $89.46 million to Malawi, compared with $15.169 million in imports. Tanzania’s trade surplus has increased by nearly 79% over five years.

Authorities nevertheless estimate that 31% of the potential bilateral export market remains untapped. The two countries are therefore seeking to move beyond traditional commodity trade and develop more integrated industrial value chains.

Soybeans at the Centre of a New Value Chain

The proposed model includes exporting Malawian soybeans to Tanzanian processors, before marketing the finished products in both countries and beyond. Immediate opportunities have also been identified in furniture, cleaning products, tiles, construction materials, seeds, soap and steel products.

The objective is to move from a trade model largely based on raw materials towards greater regional industrial integration. The strategy should also provide Malawi with additional markets for its agricultural production while allowing Tanzanian companies to expand their processing activities.