The Challenge

Customs clearing agents play a critical role in Malawi’s economy, acting as the link between traders and the Malawi Revenue Authority (MRA) and directly influencing trade efficiency and government revenue. Yet the sector operated for decades without a modern licensing framework, standardized training, or enforceable professional standards. This lack of regulation led to frequent errors, delays at the border, higher costs for businesses, and risks to revenue collection, consumer protection, and public health. Women and small firms, in particular, faced barriers to professional advancement in an underregulated and opaque system.

 

What We Did

The Alliance partnered with the Malawi Revenue Authority, the Ministry of Finance, the Ministry of Justice, Parliament, and private sector associations to modernize the customs clearing agents licensing framework by:

  • Supporting the design and adoption of Malawi’s first modern, legally enforceable licensing regulations for customs clearing agents, aligned with the WTO Trade Facilitation Agreement.
  • Establishing a public–private working group that guided regulatory reform through inclusive, consensus-based dialogue.
  • Co-creating and rolling out a national professional training and certification programme for clearing agents, delivered through a blended learning model in partnership with the Malawi University of Business and Applied Sciences.
  • Training and certifying 233 clearing agents—over 95% of the market—across two cohorts, including increasing participation by women in a traditionally male-dominated profession.
  • Introducing standardized examinations, ethical requirements, and ongoing oversight mechanisms to raise professionalism and accountability across the sector.
  • Leveraging regional experience, including lessons from Zambia, and embedding sustainability by transferring ownership of training materials and delivery to national institutions.

Despite the suspension of external funding in early 2025, Malawian stakeholders continued the training programme using their own resources—an exceptional demonstration of local ownership.

 

The Impacts

The project delivered measurable improvements in trade efficiency, professionalism, and trust:

  • Malawi adopted and gazetted a new licensing framework in 2025, transforming customs brokerage from a loosely regulated activity into a recognized, accountable profession.
  • 233 clearing agents were certified, covering nearly the entire market and creating a national cadre of trained professionals.
  • An independent impact evaluation found a 16.2% reduction in customs processing times, a 43.2% reduction in declaration errors, and a 23.1% decrease in brokerage costs, saving traders an average of USD 113 per declaration.

Collaboration between government and the private sector deepened, strengthening confidence, compliance, and long-term reform sustainability.

 

Early Closure

In January 2025, a Stop Work Order from the U.S. Department of State led to the withdrawal of USAID funding, closing the project earlier than planned. While this curtailed planned activities, the project delivered rapid, tangible gains in trade facilitation and laid the foundation for a more transparent, efficient, and inclusive border environment in Malawi.