The government of Malawi has said it will ensure letters of credit (L/Cs) are available to help importers in South Sudan buy food surplus to Malawian domestic requirements.

The L/Cs are part of bilateral trade arrangement made by the two countries that aims to help South Sudan alleviate its cereals deficit while Malawi will benefit from competitively priced South Sudanese refined petroleum products.

Cereals deficit

South Sudan's minister of trade and industry, Kuol Athian, says a trade agreement reached by the two countries will help his country alleviate a severe cereals deficit estimated at 465,600 metric tons (mt).

Malawi's minister of trade, Sosten Gwengwe, says his country has this season produced 4.2mt of maize and consumed just 3mt, leaving 1.2mt available for export.

Athian said that Malawi would issue L/Cs for South Sudanese importers to facilitate food imports from Malawi.

Cheaper fuel

Malawi expects to import refined petroleum products from South Sudan once its newly renovated Tharjath refinery in Unity state comes online.

Athian reckons that South Sudanese petroleum products will be less expensive than those Malawi currently imports from Arab states.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.