A report released by a shipping and clearing firm called Fortress Business and Logistics Consult has outlined that trade between Malawi and Mozambique has shrunk by 13%, attributed to the coronavirus pandemic.
Fortress Business and Logistics Consult Chief Executive Officer, Karl Chokotho, told The Daily Times newspaper that annual volumes through Mozambique corridors make up to around 20% of the total Malawi imports and exports
In May, Cross-border transporters posted losses, attributed to the coronavirus pandemic, which has seen strict travel restrictions or complete lockdown, as both measures are disrupting the businesses. The Chairperson of the Fuel Transporters Association, Gordon Luhanga, said that business has been slow since March.
Offering a solution, an e-Comesa newsletter has revealed that Small and Medium Enterprises (SMEs) which are involved in cross border trade are considering mobilising their products and exporting in bulk to maintain trading amid the Covid-19 pandemic. The initiative will see the traders packaging similar goods from either side of the borders to export as bulk, as the initiative is happening and working for traders in the great lakes region. The newsletter outlines that once the goods arrive, the traders share them out and proceed with trading at their different points of sale. “For this innovation to succeed, a lot of goodwill and trade policy support is required from the respective governments,” reads the newsletter.