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MRA outlines hurdles to trade facilitation

The Malawi Revenue Authority (MRA) says cumbersome procedures and a lack of capacity are some of the challenges Malawi is facing to ease its trade with other countries.

MRA commissioner for customs and excise Shadric Namalomba, in his presentation titled ‘The Role of MRA in Export and Trade Facilitation, added that limited automation, increased cases of smuggling and corruption are some of the challenges frustrating trade between Malawi and other countries.

He was speaking at the recent lakeshore annual conference of the Association of Business Journalists (ABJ) in Mangochi.

Namalomba also cited the high cost of doing business in the country as another factor that impedes Malawi’s quest to facilitate trade with other countries.

According to the latest World Bank’s Ease of Doing Business 2013 (DB13) report, Malawi has slipped to 157 from 151 out of 185 economies in the world.

 Namalomba said Malawi continues to fair badly in the areas of starting business, paying taxes, enforcing contracts, resolving insolvency, getting credit and electricity.

He said DB13 showed that Malawi’s neighbour, Zambia has improved most of these areas and eased the cost of doing business.

“We need a shared vision with all the stakeholders such as the civil society, media, private and public sectors if we are to facilitate trade between Malawi and other countries,” said Namalomba.

The MRA official said trade facilitation contributes to economic growth by reducing transaction costs and maximise efficiencies, adding that MRA is electronically processing data and improving customs administration to facilitate trade.

Namalomba cited the introduction of Exports Division as one key role by MRA to ensure smooth trade facilitation stressing that if Malawi reduces costs by one percent it can boost exports by seven percent.

“We need to join hands to eliminate and simplify international trade practices and procedures. Leadership not politics is a key driver for this change,” he said.

Recently, the public tax collector has refocused its role from a mere gatekeeper to a trade facilitator, said Namalomba. 

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