Malawi’s decision to join the Central Corridor Transport Facilitation Agency has raised hopes among the business community and the government of improved efficiency gains. The agency, a key multimodal transport network, plays a vital role in linking landlocked countries in the region such as Malawi to the Indian Ocean port of Dar es Salaam in Tanzania. Speaking in an interview yesterday, Minister of Transport and Public Works Jacob Hara said joining the Central Corridor is a strategic decision as Malawi’s affiliation to the agency is expected to yield several benefits. He said: “We believe that this partnership will significantly enhance our access to the sea and regional markets, promoting trade and economic growth in our country. “Malawi’s accession to the Central Corridor Transport Facilitation Agency is expected to yield several benefits, including reduced trade costs, improved infrastructure, enhanced trade competitiveness and increased regional integration.” Malawi is globally recognised as one of the largest landlocked developing countries which depend on its neighbours to gain access to international trade markets. Drawing a comparison between trade costs in Mozambique and Malawi, the World Bank in its Harnessing Natural Resources for Economic Transformation Report, found that shipping a container from China to Beira Port in Mozambique costs about $3 000 (about K5.1 million) less than transporting the same container from Beira to Malawi. The bank indicated that while transport and logistics costs are high in many countries, those faced in Malawi and other landlocked developing countries in sub-Saharan Africa translate to competitive disadvantages, including...
Hope ignited as Malawi joins central corridor
Posted on: January 26, 2024
Posted on: January 26, 2024