The Impact of the National Export Strategy on the Plastics and Packaging Industry in Malawi

Yassin Mwachande, Kotie Viljoen and Marinda Pretorius

Journal of Developing Areas, 2024, vol. 58, issue 4, 241-254

Abstract: Export-led industrialization is crucial for economic growth, emphasizing the shift from primary production to manufacturing. Malawi aims for industrialization through its National Export Strategy (NES), focusing on oilseed and sugarcane products and manufacturing. However, research gaps exist on export promotion programs’ impact, especially in less developed countries like Malawi and specific sectors like plastics and packaging. A mixed-method approach was employed, combining qualitative and quantitative methods for robust analysis. All 13 firms in Malawi’s plastics and packaging industry were surveyed in Blantyre and Lilongwe to assess the impact of the National Export Strategy (NES). A questionnaire with 37 questions across six sections, adapted from prior research, was used to gather comprehensive data on various aspects such as employment, production, and investment. Ethical clearance was obtained, and completed questionnaires underwent thorough review before data analysis. Results are presented in subsequent sections. The impact of Malawi’s National Export Strategy (NES) on its plastics and packaging industry highlights vital challenges. Employment suffers from a lack of skilled labor, stemming from a mismatch with training institutions. Firms struggle with limited access to finance and high borrowing costs, hindering investment. High taxes and duties hamper export competitiveness, while unreliable energy supply increases operational costs. Additionally, transportation expenses impede raw material imports, exports, and local distribution. These findings underscore the need to address skill mismatches, enhance financial access, reduce trade barriers, and improve infrastructure to bolster the industry’s resilience and competitiveness under the NES. Policy implications include collaborating with financial institutions to enhance access to grants and affordable credit, imposing higher import taxes on finished products to protect local producers, improving energy supply, enhancing transportation infrastructure, introducing incentives for investment in support services, raising awareness of NES benefits, and establishing industry-specific meetings to address sector-specific issues. These measures aim to bolster the plastics and packaging industry’s competitiveness and support its growth under the NES.

Keywords: Malawi; National Export Strategy; Plastics; Packaging; Export Promotion Programs (search for similar items in EconPapers)
JEL-codes: F13 L65 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.58:year:2024:issue4:pp:241-254

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