Malawi signs groundnuts export deal with China – The Times Group

Malawi and China have signed an agreement which will see local farmers exporting groundnuts to the Asian country.

The pact, if well utilised, could help contribute towards forex generation for Malawi and meet the export diversification agenda.

A government circular from the Secretary for Foreign Affairs shows that the agreement was entered into during the 4th Forum on China-Africa Cooperation last month.

Principal Secretary in the Ministry of Agriculture Dickxie Kampani said the agreements are for a number of agriculture value chains.

“We do not have specific quantities, the only product with specific quantities is tobacco. They are looking for 10 million kilogrammes every year,” Kampani said.

But agricultural policy industry experts say the government should work towards addressing supply chain constraints if Malawi is capitalise on the agreement.

In an interview, Grain Traders and Producers Association of Malawi President Grace Mijiga said Malawi does not have capacity to meet China’s demand for agriculture commodities.

“For a start, we do not have enough seed to push any meaningful production; we have limited availability and accessibility of quality seed, high costs of seed, making it unaffordable for many smallholder farmers, low productivity due to the use of recycled seed and lack of competitiveness due to low yields, resulting in higher prices.

“We also have persistent struggles with pest management and a serious need to transition from smallholder to commercial production. To optimise the benefits of this agreement, we need a programme that embraces an inclusive business model, engaging all value chain players,” Mijiga said.

Another commentator Leonard Chimwaza was optimistic that the farmers can make the most of the available market opportunity.

“While the Malawi- China groundnut export agreement presents a valuable opportunity, significant work needs to be done to enhance Malawi’s production capacity and quality control measures.

“The success of this venture will depend on collaborative efforts among the government, agricultural researchers and farmers to address these challenges and build a robust, export-oriented groundnut sector,” Chimwaza said.

Information available on the International Trade Centre (ITC) Trade Map shows that trade balance between Malawi’s and China reached –$491.6 million in 2023, having imported goods worth $546.1 million and exported goods worth $54.4 million to that country.

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