Trade Facilitation

Description

According to the World Bank Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Malawi is ranked 73rd out of 155 countries with all scores above the averages of the low income and Sub-Saharan Africa countries. On the one land, Malawi performs especially well in terms of international shipments and timelines. According to the World Bank Doing Business Report (2013), exporting one standard container of goods costs USD 2,175, while importing the same container costs USD 2,870. These figures mean that Malawi conducts lower priced trade than other African landlocked countries such as Uganda and Rwanda. On the other hand, tracking and tracing and customs remain the least developed logistics features. As is clear from the LPI, Malawi has significantly improved in all areas of logistics measured by the World Bank from 2007, with the most striking improvement in infrastructure. The country continued to improve trade facilitation legislation in 2013 by improving customs clearance procedures and transport links between the port of Beira in Mozambique and Blantyre in Malawi. This is in line with Malawi’s work to improve customs procedures with the use of UNCTAD's Automated System for Customs Data (ASYCUDA), whilst pre-shipment inspection was abolished in 2007 and as per the Malawian authorities, customs procedures are in line with WTO requirements.

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012