Industrialists seek linkages to boost trade with Malawi

Kenyan manufacturers are scouting for cheaper channels of getting goods into Malawi in a campaign that could significantly improve the volume of exports to the southern African countries.

The industrialists say they are seeking new trade linkages that will allow them to establish joint ventures with Malawians, beating official and unofficial barriers to trade.

Kenya, a member of the East African Community’s (EAC) customs union mainly exports tobacco products, fertiliser, soaps, chemicals, packaging materials and printed matter to Malawi, a member of Southern African Development Community (SADC).

Kenyan businesses are also said to be exploring modalities of opening new distribution outlets, signing agency and distributorship agreements and licensing arrangements with southern African businesses to expand export list to SADC countries.

New products

“Kenya and Malawi may be in Comesa but it will be cheaper to set up a unit in the country especially in the under-exploited sector to gain entry into other SADC countries,” said a manufacturer who participated in the Kenya Solo Exhibition in Blantyre Malawi last weekend.

The Solo exhibition and the trade mission was organised by Export Promotion Council, Kenya Association of Manufacturers and Kenyan embassies in southern Africa to assist companies seeking to launch new products, enlarge, and build markets in Malawi, Zambia and neighbours.

According to Trade ministry officials, Kenyans are also seeking business partnerships in manufacturing, agro-processing, engineering, communications and infrastructure.

On Wednesday, KAM officials said businesses used the exhibition to establish useful linkages, secure deals and understand the buyer requirements in the Zambian and Malawian markets.

“It was an opportunity for us to share information and experiences on the trade, investment and tourism opportunities,” said Trade Minister Amos Kimunya.

Government statistics indicate that Kenya’s exports to Malawi have been growing steadily from $2.03 million in 2000, $18.23 million in 2005, and $58.07 million in 2008 when the exports accounted to 3.6 per cent of the Kenya’s total proceeds from exports to the Comesa market.

Kenya imports from Malawi have been growing in value from $2.71 million in 2000, $5.72 million in 2005 and $1.08 million in 2008.