Malawi Halts Raw Soybean Exports to Safeguard Domestic Industries
The directive underscores the government's commitment to supporting domestic industries, promoting value addition, and fostering sustainable economic growth by prioritizing local processing.
LILONGWE, Malawi- In a joint effort between the Ministry of Trade and Industry and the Ministry of Agriculture, the Malawian government has suspended the exportation of raw soybean crops, effective April 8, 2024, writes Lumbani Kaunda.
The decision, communicated through a press release signed by Christina Zakeyo, Secretary for Trade and Industry, aims to bolster local industries and investors within the soya value chain.
Patrick Botha, Public Relations Officer for the Ministry of Trade and Industry, confirmed that the restriction stems from an assessment of the current agricultural production season.
"The national crop estimates conducted by the Ministry of Agriculture revealed a 20% decline in soybean production due to adverse weather conditions experienced in Malawi," Botha stated.
The suspension is intended to ensure access to soybean crops, a primary raw material for various by-products such as cooking oil and soya cake, for domestic industries.
This move aligns with the National Development Plan, specifically the Malawi 2063 Agenda, which emphasizes value addition and industrialization as key economic pillars.
"All previous licenses issued by the Ministry for the exportation of raw soya beans under the Control of Goods Act are now revoked and will not be valid after April 8th, 2024," the press release warned, cautioning that traders found exporting raw soybean crops during the suspension period will face legal consequences.
The directive underscores the government's commitment to supporting domestic industries, promoting value addition, and fostering sustainable economic growth by prioritizing local processing and manufacturing capabilities within the soya value chain.
As Malawi grapples with the impacts of adverse weather conditions on agricultural production, the temporary export ban on raw soybeans aims to strike a balance between meeting domestic demand and encouraging value-added exports for enhanced economic returns.