Imagine faster cargo clearance, significantly reduced business operational costs, and smoother international trade—this is the vision Malawi is working to achieve. To support these ambitions, the World Customs Organization (WCO) recently conducted a comprehensive assessment of Malawi's risk management processes, aiming to help the country better implement trade facilitation measures.
Malawi's Commitment to Modernizing Trade
Malawi has actively pursued modernization of its customs administration, viewing it as a crucial driver for national economic development. As part of the Mercator Programme, Malawi developed a detailed implementation plan to enhance customs efficiency, reduce trade costs, and ultimately stimulate economic growth. The WCO's risk management diagnostic assessment represents a key step in this initiative.
WCO's Comprehensive Evaluation
From September 11-15, 2017, WCO experts conducted an in-depth assessment of the Malawi Revenue Authority's (MRA) risk management system in Blantyre. The evaluation focused on:
- Conducting a thorough review of MRA's existing risk management policies, strategies, and operational procedures
- Identifying weaknesses and potential risk points in the current system
- Providing tailored recommendations for modernization
- Ensuring compliance with World Trade Organization's Trade Facilitation Agreement (Article 7.4)
The assessment, conducted under the WCO Mercator Programme framework, was based on Malawi's Mercator Implementation Plan developed in April 2017. WCO experts engaged extensively with MRA's senior management, team leaders, and frontline officers to understand the current state of risk management.
Key Areas of Assessment
The evaluation covered multiple aspects of MRA's risk management framework:
- Policy Framework: Examining whether policies align with international standards and best practices
- Risk Assessment Processes: Reviewing methodologies for identifying and analyzing high-risk shipments and traders
- Risk Mitigation Measures: Evaluating the effectiveness of current risk response strategies
- IT Systems: Assessing technological infrastructure supporting risk management operations
- Capacity Building: Analyzing staff competencies and training needs
Strengthening Institutional Capacity
The assessment provided MRA with valuable insights into developing risk models using historical data, establishing intelligence units, and enhancing risk management processes. These improvements will enable better risk identification and response, ultimately improving clearance efficiency and trade facilitation.
MRA officers gained knowledge in analyzing risk patterns across different commodities, trade partners, and transportation methods. They also learned best practices for establishing intelligence operations and optimizing risk management workflows according to international standards.
Strategic Roadmap for Reform
WCO presented MRA's senior management with a detailed diagnostic report outlining recommendations from the 2017 Mercator Programme. The report provides clear guidance for future risk management modernization efforts, including specific improvement suggestions, implementation timelines, and resource requirements.
International Collaboration for Development
The assessment mission received joint funding from the UK Government (through HM Revenue & Customs) and the Finnish Government. WCO looks forward to continued collaboration with Malawi to advance the Mercator Programme implementation and achieve trade facilitation objectives.
This partnership exemplifies international efforts to support developing countries in trade facilitation through technical assistance, capacity building, and policy advice—benefiting both national development and global trade prosperity.
Charting a New Course for Trade
The WCO's risk management assessment has injected new momentum into Malawi's trade facilitation progress. With continued support, Malawi is poised to enhance customs efficiency, reduce trade costs, attract investment, and achieve economic transformation. The country's experience may serve as a valuable reference for other developing nations pursuing similar reforms.
Through this initiative, Malawi has not only strengthened its risk management capabilities but also demonstrated its commitment to reform and global economic integration—signaling a promising future for the nation's development.