By Burnett Munthali
Malawi, a landlocked country in sub-Saharan Africa, faces significant challenges in managing its transport logistics, with transport costs reaching 55% of landed product costs, significantly higher than the sub-Saharan average of 20%.
The country’s reliance on an underdeveloped road network, inefficient port operations, and transit border delays contribute to high demurrage and storage costs for Malawian imports and exports.
In fact, Malawi is one of the landlocked countries within sub-Saharan Africa that faces serious challenges in managing her transport logistics.
The provision of predictable, reliable, and cost-effective transport logistics is constrained due to deficiencies in road and rail infrastructure, inefficient port and transit border operations that contribute to very high transport costs.
For instance, during the civil war in Mozambique, Malawi re-routed 95% of its trade to Durban, resulting in increased transportation costs and logistical delays.
The country’s transport costs are further exacerbated by its small market size, making it difficult to compete internationally.
Additionally, Malawi’s economy lacks diversification, with a narrow base of exports and limited infrastructure, making it challenging to facilitate trade and commerce.
Regional integration initiatives, such as the Southern Africa Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), aim to improve transport infrastructure and reduce costs.
However, more needs to be done to address the country’s infrastructure gaps and promote economic growth.
