According to Investment advisory firm Alliance Capital Limited (ACL), Brexit could cost Malawi 60% of its exports to the UK following fundamental changes in the country’s relationship with the Least Developed Countries (LCDs)

ACL has said, in its weekly market update, that if Brexit goes through, the UK will no longer be part of GSP and EBA treaty, which is a set of EU rules allowing exporters from developing countries to pay less or no duties on their exports to the UK.

Earlier this year, it was revealed that Malawi will be negatively affected by the United Kingdom’s withdrawal from the European Union. The EU exit called ‘Brexit’ will deprive Malawi of export earnings, as the study shows that 3.4% of Malawian exports enter the UK, through an initiative known as everything but arms (EBA).

EBA is an initiative by EU, for least developed countries.