Malawi suspends timber exports
Jun 09, 2011. Malawi has suspended all timber exports for a month with immediate effect because of rampant corruption and smuggling, mainly to east Africa. It also introduced a 100% timber export duty to curb illegal trade.
Jun 09, 2011. /Lesprom Network/. Malawi has suspended all timber exports for a month with immediate effect because of rampant corruption and smuggling, mainly to east Africa, as Reuters reported.
It also introduced a 100% timber export duty to curb illegal trade.
Besides east Africa, Malawian timber is sold to South Africa and Mozambique. A report last year showed that corruption and timber smuggling was costing the government $6 million a year in lost export revenue.
"We found out that a huge volume of timber, about 78%, exported from Malawi to east Africa is unrecorded," resources ministry official Ben Botolo said.
The crackdown is the latest sign of a squeeze on Malawian government finances caused by a freeze in donor funding and a declining tobacco sector, which has historically accounted for 70% of foreign currency earnings.
In his budget speech, finance minister Ken Kandodo said the 2011 tobacco season might be "one of the worst in our history", with earnings in the first four months down 80% on the same period a year ago.