Malawi’s soya industry has made a breakthrough into the Chinese market as the southern African country seeks to increase agricultural exports to boost the economy.
Malawi Investment and Trade Centre Chief Executive Officer, Paul Kwengwere, confirmed this to local media, on Friday, in Lilongwe.
Kwengwere said a 240 metric tons trial consignment by Paramount Holdings Limited, a local company, was successfully exported and approved by Chinese authorities.
He further said this is a culmination of efforts by various stakeholders, including government agencies, private enterprises and Chinese representatives.
Paramount Holdings Limited Managing Director, Mahesh Ghedhia, told local media his company emerged successful.
It emerged out of the companies that went through the accreditation process by the Chinese authorities.
This is to ascertain the quality of the produce before it gets to China.
He further said the successful trial will lead to the exportation of 20,000 metric tons of soybeans by his company.
“This shipment opens a door for Malawian exporters and we plan to increase our volumes because the Chinese market is looking for 100,000 metric tons of soya. We signed a 20,000 metric tons contract,” Ghedhia said.
Read Related News:
Malawi needs $6m to fight Cholera – Minister
Stormy weather kills 5, damages 450 households in Malawi
Cyclone: Malawi extends suspension of schools
According to Ghedhia, the exports are subject to waivers. Ministries of Trade and Industry, and Agriculture, would give such waivers to exporters as the produce is under export restrictions.
Minister of Finance and Economic Affairs, Sosten Gwengwe, told local media that the export deal with China was a government-to-government agreement.
So far, they have signed protocols on soybeans, macadamia nuts and dry chillies. Negotiations are ongoing to sign protocols on tobacco, tea and ornamental fish.
He further said the Chinese authorities were doing their accreditation of individual exporters of all the accredited commodities.
This is to ensure they meet standards.
“Those exporters that have been accredited will be given waivers on the export restrictions because they ought to fulfil contracts they signed with the Chinese importers,” said Gwengwe.
He described the deal as a game changer to transform the export base currently dominated by tobacco.
Soybeans recorded a total exports of $6.9 million in 2023, according to the country’s 2024 annual economic report. (Xinhua)
Do you have a flair for Citizenship Journalism? Share story(ies) of happenings in your area with The NewsZenith on WhatsApp: 08033668669 or thenewszenithonline@gmail.com
