Africa takes a new twist in trade rejuvenation for growth and development. In a yet another collaboration, South Sudan and the Malawian government last month (June) signed a trade agreement to supply Cereals. With the Malawian head of state His excellency Lazarus Chakwera expected in the country later this month to witness the arrival of the first consignment of Cereals exported from Malawi, the minister of Trade and Industry, Kuol Athian revealed that the deal will allow Malawian businesses to export food to South Sudan which is facing this year’s highest cereals deficit estimated at 465,600 metric tons. This has been contributed to by a number of factors that include floods, insurgencies and insecurity in different states baring farmers from participating in agriculture leading to a huge crisis of limited cereals in the country.
Recently, most African countries signed the Africa Free Trade Area agreement that seeks to ease the movement of goods to all African countries at a more reduced cost thereby improving the Gross Domestic Product of member states and improvement in business and livelihoods across the continent, Malawi is championing this trade agreement with its most recent partner state South Sudan. This has further prompted the secretariat of the Africa Free Trade Area to extend its invitation to the Malawian president His excellency Lazarus Chakwera to be present in South Sudan as it receives its first consignment, Malawi becomes the first country in Africa to implement the Africa Free Trade Area agreement to promote trade and livelihoods in Africa starting with South Sudan.
According to Malawian Trade minister Sosten Gwengwe, 1.2 million metric tons of cereals surplus has been attained this year alone since the country only consumes 3 million metric tons but producing 4.2 million metric tons of maize per annum which leaves the balance for export.
Its interesting to not that, Malawi expects to import refined petroleum products from South Sudan to cut costs of importation from the Arab world as a supplementary from this trade deal. As the much anticipated Tharjath refinery in Unity state nears completion, its also expected to boost the country’s capacity to export to its neighbors like Ethiopia and Sudan including Malawi.