Malawi: 'We Have Worshipped Mediocrity for Too Long' Charges Mumba As Malawi Moves to Restrict Imports Amid Forex Crunch, Pledges to Shield Local Industry

18 March 2025

Government has rolled out a sweeping import restriction on a list of commonly consumed goods in a bid to curb foreign exchange depletion and stimulate local production.

In a robust statement issued during a press briefing on Monday, Minister of Trade and Industry, Vitumbiko Mumba, justified the gazetted Control of Goods (Import and Export) (Commerce) (Prohibition) Order, 2025, describing it as a bold move to "safeguard the economy, create jobs, and build a resilient Malawi."

The new order, which was gazetted on March 13, 2025, temporarily bans the importation of several goods that authorities say can be sourced from Malawian producers. The affected products range from staple food items like maize flour, fresh milk, and Irish potatoes, to manufactured goods such as security boots, wooden furniture, toothpicks, and bottled water.

"This restriction is not a permanent ban, but a necessary intervention given our acute foreign exchange shortages and the alarming surge in demand for imports," said Mumba.

He stressed that the move is anchored in Malawi's long-term development agenda to reduce dependency on imports and empower domestic producers.

Mumba framed the measure as a deliberate effort to insulate local industries from what he called "crippling foreign competition," while accelerating job creation across agriculture and manufacturing sectors.

"We cannot continue being a supermarket economy," Mumba declared. "This is the time for our farmers, cooperatives, and manufacturers to step up, scale up, and claim their rightful share in the domestic market."

He cited success stories of local businesses such as Chatha Leather Design Studio, which recently supplied 1,300 security boots for the Malawi Defence Force, and local dairy companies that are capable of meeting the nation's milk demands.

Mumba called on producers to prioritize quality and certification. "Get MBS certification and your products will be supermarket-ready," he urged, referring to the Malawi Bureau of Standards.

Beyond import restrictions, Mumba revealed that the ministry has uncovered "rampant cartel behavior" and illegal business practices exacerbating Malawi's economic woes.

"We have witnessed shameful acts such as hoarding essential goods like sugar, illegal price collusion among cooking oil manufacturers, and discriminatory selling practices where foreigners bypass local vendors in the kaunjika (secondhand clothes) sector," he revealed.

He warned that such conduct borders on economic sabotage, pledging new legislation to crack down on anti-competitive behavior. "The ministry will soon introduce the Essential Goods and Services Act and the Economic Sabotage Act to restore order to Malawi's trade environment," Mumba said.

Citing regional examples like Botswana's seasonal import controls on vegetables, Mumba argued that Malawi's move is aligned with global best practices aimed at empowering domestic producers.

He also pointed to Malawi's untapped potential, referencing thriving cooperatives and SMEs in areas such as Phalombe and Jenda that are already producing certified, market-ready goods.

"This is a strategic shift toward self-reliance, in line with Malawi's vision of becoming an industrialized, upper-middle-income country," Mumba stated.

Anticipating criticism, the minister emphasized that the order is a stopgap measure intended to stabilize the economy while giving local industries breathing room.

"We are not closing Malawi off to the world. We are protecting ourselves from unsustainable practices," he said. "If local producers fail to rise to the occasion, we will reconsider this order."

Mumba also took a swipe at business owners who claim political connections to avoid regulatory compliance. "Supporting the ruling party is not a license for illegality," he warned.

Mumba pledged to work closely with supermarkets to integrate more locally-sourced goods into their supply chains and encouraged commercial banks to increase financing to the productive sector.

He further announced that the Ministry of Trade and Industry will soon automate the export/import licensing process and intensify efforts to attract genuine foreign direct investment (FDI).

"We want investment that brings real value, not middlemen who siphon profits while Malawians suffer," he said.

The restriction order will remain in force until March 2027, with periodic reviews to assess its impact. The ministry also plans to collaborate with the Malawi Investment and Trade Centre (MITC) to improve the country's trade facilitation and ensure meaningful participation of local investors in Special Economic Zones.

Concluding the press briefing, Mumba called on all Malawians to rise above mediocrity and embrace a new economic paradigm.

"We have worshipped mediocrity for too long," he said. "This is our moment to chart a new path - one that prioritizes local innovation, production, and empowerment."

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