The United Kingdom has introduced a new trade scheme that grants Malawi duty-free, quota-free access to 99.8% of its exports to the UK, a move expected to boost Malawi’s export sector.
The Developing Countries Trading Scheme (DCTS), launched in 2023, replaces the Generalised Scheme of Preferences (GSP) that previously governed Malawi-UK trade. The DCTS offers simpler rules, including relaxed rules of origin, which allow Malawian exporters to use up to 75% imported inputs in their products without losing preferential access.
Malawi’s trade with the UK has historically shown a trade deficit, with the country consistently importing more than it exports. In 2023, Malawi’s exports to the UK reached USD 39 million, dominated by tea, edible fruits, nuts, and essential oils.
The DCTS presents new export opportunities for Malawian businesses in sectors where the country has a competitive edge, including tropical fruits like mangoes, macadamia nuts, pulses such as pigeon peas, and mining products like rare earth elements. With increased demand in the UK for processed fruits, tree nuts, and pulses, Malawi can expand its market share, while its untapped mineral resources, especially rare earth elements, could attract attention from the UK’s green technology sector.
The Export Development Fund (EDF), as a development finance institution, is ready to support Malawian exporters interested in exploring the UK market through its trade finance solutions. EDF offers export finance, and market insights to help businesses meet international standards and tap into new export opportunities.