Tanzania and Malawi target small-scale traders in simplified trade regime

Business Reporter

Mwananchi Communications Ltd

Dar es Salaam. Small-scale traders operating along the Tanzania–Malawi border are set to benefit from the introduction of the Simplified Trade Regime (STR), a framework aimed at easing and strengthening cross-border trade, particularly at the busy Kasumulu and Songwe border posts.

The agreement aligns with the vision of President Samia Suluhu Hassan, who has consistently championed trade policies that empower youth and women engaged in small businesses.

This was revealed by the Minister for Industry and Trade, Ms Judith Kapinga, during the signing of a Memorandum of Understanding between Tanzania and Malawi on February 16, 2026, in Lilongwe.

Ms Kapinga said the agreement is a major boost for traders, especially youth and women, as it simplifies business procedures and cuts red tape that previously delayed transactions.

“The new arrangement will also enhance service delivery, including on-the-spot processing of certificates of origin, enabling traders to cross the border more quickly,” she said.

She explained that the framework introduces simplified customs procedures and reduces non-tariff barriers (NTBs) affecting small-scale cross-border traders between the two countries.

“Under the STR system, eligible traders will be allowed to transport goods listed in the agreement using fewer documents, simplified customs forms and streamlined certificates of origin, provided their consignments fall within the agreed value threshold,” she said.

According to Ms Kapinga, this means traders will no longer be subjected to lengthy standard customs procedures.

She noted that the agreement will formalise cross-border trade by encouraging small traders to use official entry points instead of informal routes.

The move is expected to lower transaction costs, boost government revenue and deepen economic cooperation between Tanzania and Malawi.

The arrangement applies to traders with capital not exceeding $2,000. It has already taken effect to ensure immediate benefits, and relevant authorities at the border have been urged to establish dedicated desks and clear procedures to guarantee prompt service for small-scale traders.