‘Transport costs make Malawi products uncompetitive’
Malawi Confederation of Chamber of Commerce and Industry (MCCCI) has said high cost of international transport is a major obstacle to doing business in the country.
MCCCI’s Malawi Business Climate Survey released recently says about 60 percent of exporters and close to 80 percent of importers expressed concern over high transport costs.
“Both local and international transport costs are very high and make Malawi products uncompetitive on the international market,” says the report in part.
The survey, however, says the Moatize-Nacala Rail line, being constructed and rehabilitated by Vale Limited, will reduce transport costs significantly.
MCCCI advises government to develop all modes of transport so that they are efficient and cost-effective.
Malawi is also rehabilitating the Liwonde-Nayuchi Railway and the rest of the railway system and trade experts believe this will reduce cost of doing business.
They argued that effective transport system will play a vital role in developing Malawi’s export base.
Apart from international transportation costs, exporters also cited access to finance, delays caused by international transportation, difficulties in meeting quality requirements for external markets and access to imported inputs at competitive prices as some challenges that negatively affect business in the country.
Others are identifying potential markets and buyers, cost of domestic transportation, burdensome procedures and corruption at foreign borders, inappropriate production technology skills, tariff barriers abroad and technical requirements and standards abroad.
