Lilongwe — SMALL-SCALE traders operating along the borders of Tanzania and Malawi are expected to benefit from the Simplified Trade Regime (STR), particularly at the Kasumulu and Songwe border posts.

The agreement forms part of the vision of the President of the United Republic of Tanzania, Samia Suluhu Hassan, who has consistently emphasized that the trade sector should create greater opportunities for youth and women engaged in daily small-scale businesses.

The remarks were made by the Minister for Industry and Trade, Judith Kapinga, during the signing ceremony of a Memorandum of Understanding between Tanzania and Malawi held on February 16, 2026, in Lilongwe, Malawi.

Minister Kapinga said the agreement is significant for traders, especially youth and women, as it will simplify business operations by reducing the bureaucratic procedures that previously existed. It will also enable traders to receive services more quickly, including completing certificates of origin forms on the spot and proceeding with trade on the other side of the border without undergoing lengthy procedures.

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She explained that the agreement includes a special framework aimed at simplifying customs procedures and reducing Non-Tariff Barriers (NTBs) for small-scale cross-border traders.

Under the STR framework, small-scale traders will be allowed to transport listed goods using fewer documents and simplified customs and certificate of origin forms, in line with the specific value threshold set out in the agreement. This measure will eliminate the need to follow lengthy standard customs procedures.

Minister Kapinga added that the signing of the STR agreement between Tanzania and Malawi will promote formal cross-border trade, encourage traders to use official channels instead of informal routes, reduce trading costs, increase government revenue, and strengthen economic relations between the two countries.

She further noted that the arrangement will apply to traders with capital not exceeding 2,000 US dollars.

The agreement has now come into effect, and Minister Kapinga has called on border stakeholders and relevant institutions to establish special arrangements, including dedicated service desks, to ensure traders are served promptly and begin benefiting from the opportunity immediately.