MINISTRY OF TRANSPORT AND PUBLIC WORKS

SOUTHERN AFRICA CONNECTIVITY AND TRADE PROJECT (P164847)

  TERMS OF REFERENCE FOR

Consultancy to Review 2018-2023 National Trade Facilitation Action Plan and Develop its Successor Plan

1.Background

With support from the World Bank Group, the Government of Malawi is – jointly with the Government of Mozambique – implementing the Southern Africa Trade and Connectivity Project (SATCP), whose main objective is to assist the two countries to increase regional trade coordination, reduce trade costs and time, develop regional value chains, and improve access to infrastructure. Within this objective, trade facilitation is a key component, particularly due to its role in reducing time and cost to trade and enhancing competitiveness in the country’s production processes. The Ministry of Trade and Industry leads the implementation of the trade facilitation agenda in the country and utilizes as a key mechanism the National Trade Facilitation Committee (NTFC) to foster policy dialogue on various activities within this agenda between Government, private sector, and development partners. The NTFC is co-Chaired by the Ministry of Trade and Industry and the Malawi Revenue Authority, with the Ministry also serving as Secretariat to the Committee.

Bilateral and regional trade facilitation is a key strategy of countries for promoting accelerated economic growth and increased competitiveness. Consequently, most countries in the Southern African region, have prioritized the implementation of the trade facilitation measures as outlined in the World Trade Organization (WTO) Trade Facilitation Agreement (TFA). Malawi, as one of the countries in the region with a serious commitment to undertaking trade facilitation reforms, has domesticated the trade facilitation measures through the 2016-2021 National Trade Policy, 2021-2026 National Export Strategy (NES) II, and the 2021-2026 National African Continental Free Trade Area (AfCFTA) Implementation Strategy (NIS), among others.

2.Context of the Assignment

2.1 Malawi’s TFA notifications to the WTO and their implications

Malawi, a WTO member since 1995, ratified the WTO TFA on July 12, 2017. This move was significant, as the TFA aimed to simplify and standardize customs procedures, reducing trade costs and increasing efficiency. By ratifying the agreement, Malawi demonstrated its commitment to improving its trade facilitation environment and enhancing its participation in global trade. The TFA itself entered into force on February 22, 2017, after receiving acceptance from two-thirds of the WTO’s 164 member countries. Following ratification, Malawi submitted its notifications to the WTO, outlining its implementation plans and categorization of TFA provisions.

2.2 Initial Notifications (2017)

Malawi’s initial notifications, submitted in October 2017, categorized TFA provisions into three groups:

• Category A (Immediate Implementation): 15 provisions considered already implemented or requiring minimal changes.
• Category B (Transitional Period): 11 provisions needing implementation within a specified timeframe (2017-2020).
• Category C (Technical Assistance): 4 provisions requiring external technical assistance for implementation.

2.3 Progress Updates and Revised Notifications (2020-2023)

Malawi submitted revised notifications in 2020 and 2023, updating its progress and revisions to categorization. Key developments included:

• Completion of Category B provisions, with most implemented within the specified timeframe.
• Recategorization of some provisions from Category C to Category B, indicating progress in securing technical assistance.
• Identification of new areas for technical assistance, reflecting ongoing efforts to enhance trade facilitation.

2.4 Implications on TFA Implementation

Malawi’s TFA notifications and progress updates demonstrate its commitment to trade facilitation reform. Implications of these notifications include:

• Improved Transparency: Regular notifications enhance transparency, allowing WTO members and stakeholders to track Malawi’s progress.
• Enhanced Trade Efficiency: Implemented TFA provisions streamline customs procedures, reducing clearance times and costs.
• Increased Regional Integration: TFA implementation aligns with Malawi’s regional integration goals, particularly within the African Continental Free Trade Area (AfCFTA).
• Technical Assistance: Ongoing engagement with development partners and international organizations secures vital support for capacity building.
• Private Sector Engagement: TFA implementation encourages private sector participation, fostering a more conducive business environment.

2.5 Malawi’s Current Status of TFA and Beyond TFA Implementation

2.5.1 Malawi’s TFA Implementation Progress

Since July 2017, the country has made significant strides in implementing TFA provisions.

Key Achievements:

• National Trade Facilitation Committee (NTFC): Established in 2017, the NTFC coordinates TFA implementation, bringing together government agencies, private sector stakeholders, and civil society organizations.
• Category A Provisions: Malawi has implemented all Category A provisions, focusing on immediate reforms, such as simplifying customs procedures and enhancing transparency.
• Category B Provisions: Most Category B provisions, requiring transitional periods, have been implemented including establishment of test procedures for customs clearance, reducing physical inspections; establishment of an appeals procedure for traders to contest customs decisions; and introduction of customs brokers licensing to regulate and professionalize the industry.
• Category C Provisions: Malawi has made significant progress in implementing Category C provisions including the establishment of a national single window system for customs clearance, completion of three (out of six) one stop borders posts, establishment of a risk management unit within the Customs Authority, commencement of pilot implementation of Post-Clearance Audit (PCA), and upgrading of ASYCUDA to ASYCUDA World.
• Technical Assistance: Malawi has received support from development partners, such as the WTO, World Bank, European Union, USAID, UNCTAD, and GIZ to enhance capacity and build institutional frameworks.

2.5.2 Beyond TFA Implementation

Malawi’s trade facilitation efforts extend beyond TFA implementation, focusing on:

• African Continental Free Trade Area (AfCFTA) Compliance: Malawi is harmonizing its trade facilitation efforts with AfCFTA standards, including participation in the Guided Trade Initiative (GTI) to enhance trade in key sectors (agriculture, manufacturing, and services).
• National Trade Policy: Developed in 2020, the policy outlines strategies for improving trade competitiveness and economic growth.
• Customs Modernization: Ongoing efforts aim to automate customs procedures, enhance risk management, and introduce a digital payment system.
• Trade Information Portal (TIP): Launched in 2022, the portal provides a single point of access for trade-related information. The TIP is undergoing a major overhaul to enhance user experience and functionality.
• Private Sector Engagement: Malawi has established public-private partnerships to enhance stakeholder engagement and foster a more conducive business environment.

2.6 Implementation Roadmap and Framework

2.6.1 The National Trade Facilitation Action Plan

The National Trade Facilitation Action Plan (NTF-AP) serves as a roadmap for implementing Malawi’s trade facilitation initiatives. It includes detailed action plans and uses Multi Criteria Decision Analysis (MCDA) to set priorities for implementation of the identified trade facilitation measures. The first three-year NTF-AP came into effect in 2015, and its most recent update covered the years 2018–2023.  The plan is a consolidated effort by the Ministry of Trade and Industry, and it aligns with Malawi’s broader economic strategies. The 2018-2023 NTF-AF was aligned with the first National Export Strategy (NES) and the Malawi Growth and Development Strategy (MGDS II) which have since been replaced by NES II and the Malawi 2063 Agenda, specifically, the first ten-year Malawi Implementation Plan (MIP-1). Similarly, the National Trade Policy is now being reviewed, and any recommendations or priorities for implementation made therein must be considered in the next NTF-AP.

2.6.2 The National Trade Facilitation Committee (NTFC)

Malawi has put in place a solid institutional framework to drive the National Trade Facilitation Action Plan forward. At the heart of this framework is the National Trade Facilitation Committee (NTFC), which plays a pivotal role in implementing the TFA and beyond. The NTFC brings together representatives from government ministries, agencies, and private sector organizations, fostering collaboration and engagement among stakeholders. Serving as a collaborative platform, this committee ensures seamless interagency coordination.

2.7 Description of the Assignment

The Ministry of Trade and Industry is seeking consultancy services to assess the impact of the 2018-2023 NTF-AP and create a new plan that aligns with the country’s current development goals and the latest advancements in trade facilitation.

This evaluation will help determine whether the implemented actions achieved their intended objectives and identify areas for improvement and Government priorities. It is an essential step in ensuring that the new plan addresses emerging issues, leverages new technologies, and enhances trade efficiency. Specifically, the review aims to achieve the following:

• Assess Progress: Evaluate achievements and challenges faced during implementation.
• Identify Gaps: Determine areas requiring improvement or additional support.
• Update Reforms: Reflect changes in trade policies, laws, international agreements and UNCTAD Reforms Tracker.
• Align with AfCFTA: Ensure alignment with AfCFTA requirements.
• Enhance Stakeholder Engagement: Foster public-private partnerships and stakeholder participation.
• Improve Coordination: Strengthen interagency collaboration and institutional frameworks.
• Address Emerging Issues: Incorporate new trade facilitation themes, technologies, or best practices.

The consultancy project will provide a roadmap for Malawi to further:

• Simplify and streamline trade procedures
• Reduce trade costs and increase efficiency
• Enhance transparency and accountability
• Improve the overall business environment
• Increase trade competitiveness and economic growth

3. Purpose and Objectives

The primary objective of this assignment is to review Malawi’s National Trade Facilitation Action Plan and develop an updated Action Plan that aligns with national development goals, international best practices and standards, and new developments in the trade facilitation arena including the implementation of the AfCFTA and Tripartite Agreements. The consultancy should aim to:

1. Evaluate the effectiveness of Malawi’s current National Trade Facilitation Action Plan in streamlining international trade, cutting costs and time, boosting efficiency, and enhancing the business environment. This assessment should encompass all reforms implemented within and outside the 2018-2023 plan, including ongoing, completed, postponed, and discontinued initiatives.

Key Areas of Focus

• Reform Impact Analysis: Investigate how all reforms, regardless of their status, have influenced Malawi’s international trade.
• Trade Performance Comparison: Benchmark current trade performance against the 2018 baseline to measure progress.
• Cost and Time Reduction: Assess reductions in trade-related costs and time.
• Efficiency and Business Environment: Evaluate improvements in efficiency and the overall business environment.
  • Identify and collate lessons learnt from the implementation of the current Action Plan.
  • Identify gaps and areas for improvement in the current Action Plan, including any challenges or constraints that have hindered its implementation.
  • Develop a comprehensive successor Action Plan (2025-2030) that addresses the identified gaps and areas for improvement and aligns with Malawi’s national, regional and continental trade facilitation goals and that provides an updated WTO TFA notifications of definitive dates and donor support.
  • Enhance Malawi’s trade facilitation capacity by providing recommendations for modernizing customs, agriculture, standards, and other border agency procedures, streamlining processes, and improving transparency and accountability.
  • Foster stakeholder engagement and ensure that the next Action Plan is inclusive, consultative, and considers the needs and perspectives of all relevant stakeholders.

By achieving these objectives, the project will contribute to Malawi’s economic development and integration into bilateral, regional, continental and global trade.

4.Scope of the Assignment

The consultant will:

1. Review Malawi’s current National Trade Facilitation Action Plan and other related documents, identifying strengths, weaknesses, opportunities, and threats (SWOT analysis). By conducting a SWOT analysis, areas to improve Malawi’s trade competitiveness will be maximized by leveraging strengths, addressing weaknesses, and developing targeted strategies to capitalize on opportunities and mitigate threats.
   1. Conduct stakeholder engagement and analysis (government, private sector, civil society, development partners, NTFC etc.) to gather insights and feedback, ensuring broader stakeholder inclusion, including SMEs and women in trade.
   1. Assess Malawi’s trade facilitation landscape, focusing on ongoing reforms, changing procedures, IT system upgrades, infrastructure development, and institutional frameworks. This assessment aims to pinpoint gaps and areas for enhancement to streamline trade processes.

Key Areas to Assess:     

• Trade Procedures: Identify changes in procedures, including those related to Customs, Agriculture, and Standards to ensure efficiency and transparency.
• IT Systems: Assess current and upcoming IT systems and upgrades to facilitate seamless trade transactions.
• Infrastructure: Assess the condition and capacity of trade-related infrastructure, such as ports, borders, and transportation networks.
• Institutional Framework: Examine the effectiveness of institutions governing trade, including their policies, regulations, and enforcement mechanisms.
  • Analyze regional, continental, and international best practices in trade facilitation.
  • Identify gaps and areas for improvement in the current Action Plan, including any challenges or constraints that have hindered its implementation
  • Facilitate pre-workshop preparations, workshops, stakeholders’ engagement, and post-workshop activities.
  • Develop a thorough and updated Action Plan for 2025-2030 that tackles identified gaps and areas for improvement in Malawi’s trade facilitation. This plan should align with national, regional, and continental goals, including specific timelines, milestones, and assigned implementation agencies. Additionally, ensure the plan incorporates updated WTO Trade Facilitation Agreement (TFA) notifications with definitive dates and secured donor support.
  • Develop a comprehensive M&E framework to track progress, measure success, and inform adjustments to the updated National Trade Facilitation Action Plan. The M&E plan will comprise key performance indicators (KPIs) with specific targets and milestones, timelines for achieving the specified targets and milestones, initial values for each indicator (providing a starting point for measurement), data collection methods, evaluation criteria (preferably the OECD criteria), risk management plan with mitigation strategies, responsibility matrix with assigned agencies/personnel, resource plan (personnel, budget, technical assistance).
  • Develop a communication strategy that outlines how findings and recommendations will be disseminated to stakeholders and the public.
  • Assess the effectiveness of the NTFC and make recommendations to improve sustainability and transparency including the role of the private sector.

5. Methodology

The consultant will employ a combination of the following methods to review Malawi’s National Trade Facilitation Action Plan and develop a succeeding Action Plan:

1. Desk Review (10% of total duration):
   1. Analyze existing documents, reports, and data related to the current Action Plan, including the latest versions of WTO’s and Government of Malawi’s reports on the 2023/2024 Malawi Trade Policy Review.
   1. Identify strengths, weaknesses, opportunities, and threats (SWOT analysis) to unlock Malawi’s trade potential by identifying strategic strengths, addressing vulnerabilities, and developing proactive plans to capture opportunities and counter threats.
   1. Stakeholder Engagement (20% of total duration):
      1. Conduct interviews with key government officials, private sector representatives, and other stakeholders.
      1. Organize focus group discussions or workshops to gather feedback and insights.
      1. Facilitate effective involvement of the NTFC in leading stakeholder engagement, facilitating meetings, workshops, and consultations to gather input, promote ownership and commitment and build consensus among stakeholders on the plan’s goals, objectives, and actions to set the stage for successful implementation and meaningful trade facilitation reforms.
   1. Gap Analysis (20% of total duration):
      1. Identify gaps and areas for improvement in the current Action Plan and develop strategies to address them, ultimately enhancing Malawi’s trade facilitation environment. This involves evaluating the plan’s effectiveness in streamlining international trade, reducing costs and time, boosting efficiency, and enhancing the business environment against the baseline situation in 2018. The analysis will assess the gaps and the impact of all reforms implemented within and outside the 2018-2023 plan, including ongoing, completed, postponed, and discontinued initiatives.
      1. Conduct a review workshop with the NTFC to assess TFA provisions, identify gaps, and establish clear government priorities for the next 5 years.
      1. Assess alignment with international trade facilitation standards and best practices.
   1. Benchmarking (10% of total duration):
      1. Research and compare Malawi’s trade facilitation practices with regional and international benchmarks.
      1. Identify opportunities for improvement and modernization.
   1. Action Plan (with M&E and Communication Frameworks) Development (40% of total duration):

To ensure strategic alignment across stakeholders, the Action Plan development process will involve one or two significant sessions with the NTFC to align national agencies with trade strategic priorities for TFA and non-TFA objectives; ensure key agencies commit to and align with their 5-year strategies, resources, and budgets; achieve alignment across government MDAs; and establish performance metrics and tracking.

• Develop a comprehensive updated Action Plan, incorporating findings and recommendations, including for general or specific contingency mechanisms to mitigate the impact of “force majeure” events like COVID-19 on the implementation of the reforms.
  • Outline clear objectives, timelines, milestones, and responsible parties.
  • Ensure alignment with national, regional, and continental trade facilitation goals.
  • Specify the methods for tracking and assessing the Action Plan’s execution.
  • Develop outreach initiatives to inform and engage stakeholders, soliciting regular feedback to ensure effective implementation and stakeholder buy-in of the NTF-AP. Additionally, list the agencies that will carry out these outreach initiatives.
  • Present the updated Action Plan to stakeholders, solicit input, and incorporate feedback to reach a consensus with NTFC stakeholders before finalizing a final version for approval.

6. Expected Results and Main Activities

The desired outcomes of the consultancy project are as follows:

1. A comprehensive review report of the current National Trade Facilitation Action Plan highlighting gaps, areas for improvement and the process for monitoring the implementation of the action plan.
2. An updated Action Plan that succinctly prioritizes Malawian trade facilitation mission, goals and agenda, ensures fulfilment of the WTO TFA commitments and establishes SMART measures for delivery that are approved by relevant stakeholders.
3. A functional M&E framework that ensures effective implementation and monitoring of the National Trade Facilitation Action Plan.
4. Undertake an inclusive TF strategic planning process to develop a collective Malawian NTFC Action plan for 2025-2030 that realizes collaborative buy-in and ownership of the 2024-2029 trade facilitation agenda.

Improved trade facilitation capacity in Malawi, contributing to increased trade competitiveness and economic growth. Involving the NTFC in action plan development enhances Malawi’s capacity by fostering a deeper understanding of trade facilitation, improving analytical skills, strengthening institutions, streamlining procedures, promoting inter-agency coordination, and empowering officials to drive reforms.

7. Timelines and Deliverables

The consultancy shall be completed within 135 calendar days from the commencement date, with an allocation of 90 consulting days for the total assignment. The consultant will meet the following deliverables with delivery dates and consulting day/work effort as indicated:

1. An Inception Report outlining the consultant’s understanding of the assignment, the proposed methodology, approach, and work plan to be used to achieve the outcomes of the assignment (6 days work effort).
   1. A draft review report of the current Action Plan that includes an evaluation of its effectiveness and impact (26 days work effort).
   1. A stakeholder feedback report (6 days work effort).
   1. Presentation of the findings and recommendations at stakeholders’ validation meeting (6 days work effort). 
   1. Draft new Action Plan together with Communications Plan and M&E Plan (36 days work effort). 
   1. A final review report and validated succeeding Action Plan (10 days work effort).
   1. Periodic interim reports to track progress, solicit stakeholder feedback, and inform timely adjustments.

8. Academic requirements and experience

The consultant is expected to have the following minimum requirements:

Academic Requirements:

1. Master’s degree in a relevant field, such as:
   1. International Trade
   1. International Relations
   1. Economics
   1. Trade Law
   1. Business Administration
   1. Public Policy
   1. Logistics and Supply Chain Management
   1. Specialized training or certifications in trade facilitation, customs modernization, or related areas.

Experience:

1. At least 5-7 years of experience in trade facilitation, customs modernization, or related areas.
   1. Proven experience in developing and implementing trade facilitation action plans or similar initiatives.
   1. Experience working with government agencies, international organizations, or private sector entities on trade facilitation projects.
   1. Strong understanding of national, regional and international trade facilitation standards and best practices (e.g., WTO TFA, WCO SAFE Framework).
   1. Experience in conducting stakeholder engagement, gap analysis, and needs assessments.
   1. Strong analytical, writing, and communication skills.
   1. Experience in project management and coordination.

Desirable Experience:

1. Experience working in a developing country or similar context.
   1. Good understanding of trade facilitation issues affecting LDCs and the region.
   1. Good understanding of the trade policy and business environment of Malawi will be an added advantage.
   1. Familiarity with regional trade agreements and initiatives (e.g., AfCFTA).
   1. Facilitation skills for engaging and managing strategy formulation workshops.
   1. Experience with trade facilitation tools and instruments (e.g., UNCTAD’s ASYCUDA, Reforms Tracker, WCO’s CLSS).
   1. Knowledge of digital trade facilitation and single window systems.
   1. Experience in capacity building and training programs for government officials or private sector stakeholders.
   1. Experience in developing and writing national strategies and plans.

9. Reporting

In relation to these activities, the consultant will act under the direction of the Director of Trade in Goods and the Director of Trade in Services, with oversight from the Principal Secretary of Malawi’s Ministry of Trade and Industry. Submission of final deliverables will be done through both hard copies and electronic copies.

Reporting on contractual terms and obligations will be made to the Project Manager of the Southern Africa Trade and Connectivity Project.

10. Contracting

The consultant will be contracted in line with the World Bank’s procurement guidelines as administered by the Project Implementation Unit of the Southern Africa Trade and Connectivity Project.  

10.1Payment Terms

Payments will be tallied with deliverables as follows:

1. 20% to be paid upon delivery of the approved Inception Report;
2. 40% to be paid upon delivery of the Draft Updated National Trade Facilitation Action Plan with communications and M&E frameworks; and
3. 40% to be paid upon delivery of the Final Updated National Trade Facilitation Action Plan with communications and M&E frameworks.