From border blockades to business breakthroughs—Malawi and Tanzania have transformed their trade relationship almost overnight, thanks to a sweeping new agreement that experts are calling “the most significant economic development in the region this decade.”
The breakthrough comes amid mounting economic pressures across Southern Africa, where inflation, currency devaluation, and rising protectionism have disrupted regional trade.
Both countries face increasing pressure to improve trade efficiency, especially as global supply chains remain fragile and African economies push for deeper integration.
Tensions peaked on March 13 when Malawi unilaterally imposed an import ban on several Tanzanian goods. Intended to protect domestic industries and preserve foreign exchange reserves, the move instead drew strong backlash from Tanzanian officials and disrupted regional supply chains.
It also threatened to undermine progress under the African Continental Free Trade Area (AfCFTA) and the Southern African Development Community (SADC).
However, in a significant diplomatic shift, Malawi has agreed to lift the ban following high-level talks held in Dodoma on May 2.
Malawi’s Foreign Minister, Nancy Gladys Tembo, and Tanzanian counterpart Ambassador Mahmoud Thabit Kombo led the discussions, which focused on reversing the ban and restoring cross-border trade.
The meeting marked a notable change in tone between the two countries, which share a complex history, including a still-unresolved dispute over Lake Malawi—referred to in Tanzania as Lake Nyasa.
Despite lingering tensions, both sides reaffirmed their commitment to regional cooperation and mutual economic benefit.
As a landlocked country, Malawi relies heavily on Tanzania’s Dar es Salaam port for access to global markets. The import ban had wide-reaching effects, disrupting everything from agricultural exports to fuel logistics.
For Malawian businesses already struggling with currency instability, the additional trade barriers proved especially damaging. Among those most affected were small-scale cross-border traders—thousands of whom depend on daily activity at key border posts such as Songwe, Kasumulu, and Chiponde.
Many of these traders, particularly women selling textiles, maize, and household goods, reported income losses of up to 60% during the freeze.
At the heart of the negotiations was Malawi’s Control of Goods (Import and Export) (Commerce) (Prohibition) Order—the legal mechanism used to impose the ban. Tanzanian officials argued that the order was issued without consultation and violated existing bilateral agreements.
“The talks centred on this restrictive order, which effectively halted the flow of key goods into Malawi,” read a joint statement. “Both countries recognise the need to resolve this matter in the spirit of cooperation and economic development.”
In that spirit, the two nations agreed on a set of concrete steps aimed not only at reversing the ban but also at improving trade relations going forward. Key provisions include:
- Simplified customs procedures at major crossings such as Songwe and Chiponde
- Harmonisation of product standards and certifications to ease compliance
- A digital platform for trade documentation, expected to cut clearance times from days to hours
- Creation of a Joint Trade Committee to resolve future disputes
- Special provisions for small-scale traders, including reduced tariffs and simplified paperwork
To formalise its commitment, Malawi has pledged to issue a new government directive—referred to as an administrative instrument—that will lift the ban and restore the legal framework for Tanzanian imports. This directive is expected to take effect immediately following the communique.
The move will bring relief to Malawian consumers and businesses, who depend heavily on Tanzanian agricultural products, household goods, and fuel. Tanzanian exporters—many of whom had been left in limbo—can now resume trade with greater certainty.
While the official statement did not specify the banned goods, sources close to the negotiations suggest the list likely included cooking oil, cement, sugar, and second-hand clothing—items that dominate cross-border trade.
Looking ahead, the two countries are also working to fast-track the signing of a Simplified Trade Regime Agreement, intended to reduce bureaucracy and make cross-border trade easier for small businesses. Officials aim to finalise the legal text by May 30, 2025.
“The spirit of cooperation was strong,” said one diplomat present at the talks. “Both sides acknowledged past missteps but focused on building a more resilient trade relationship.”
Malawi’s delegation expressed appreciation for what they described as Tanzania’s “warm hospitality and excellent arrangements” during the Dodoma meeting. Malawian businesses will be watching closely as details of the administrative instrument emerge—hoping the new measures not only reopen trade but also make it better.
