Published:
Trade between Zambia and Malawi should soon be increasing due to a Simplified Trade Regime (STR). Its goal is to help to eliminate some customs, duties, and other taxes that exporters would normally have to deal with when crossing the border between the two countries. Until now, trade between these two countries has not really been encouraged, even though they both have resources the other desires.
Both countries will see an increase in trade because of the demand they have for each others products. For example, Zambia has a shortage of fish that Malawi can alleviate, and Malawi will certainly take advantage of the large amount of rice that is grown in Zambia. The STR will benefit small-scale traders of things like rice and fish who would naturally shy away from exporting.
It is hoped that the STR will lead to an increase in profits for local farmers. It is important for African countries to use their natural resources to their full potential to increase trade. Many people make their living off of the crops that they grow, and now they will more easily be able to export them for more revenue and ultimately more jobs. Since cross-border trading often leads to more employment opportunities, both Zambia and Malawi are hopeful the STR will do just that.
Eliminating fees for trade will also decrease the likelihood of bribes and corruption, which is common. Now that doing things the right way will not cost as much, farmers are more likely to export their crops legally. Overall, the STR will benefit both Zambia and Malawi by increasing trade and job opportunities.
File under
Share this article
