Industry captains and economic experts have said passing of the judgment at the Constitutional Court on Monday does not guarantee a rapid pick up in business in the short term.
The Court nullified the May 21, 2019 presidential elections on the basis of what it described as widespread, systematic and grave irregularities and has since ordered that a fresh election be held within the next 150 days.
Executive Director of the Economics Association of Malawi (Ecama), Kettie Nyasulu, said there is hope that businesses will flourish once the fresh election is conducted and everything is settled.
“Generally it is a situation we have to wait and see. We may not necessarily observe the businesses picking up immediately as there are still some underlying factors such as the forthcoming fresh elections that need to be considered as well as the rest of changes that have come out of the court ruling. But once the dust settles, we should see progress in businesses,” Nyasulu said.
In a separate interview, Chairperson of the National Association of Small and Medium Enterprises (SMEs) said passing of the judgment has increased confidence among SMEs.
“Passing of the judgment clears fears that were among SMEs and the private sector in general, we feel there are no other fears so we have to raise our capital and look for markets and go into concrete business deals both on the local and international markets.
“This is an opportunity for businesses to make money because the politicians will be going in the villages and that enhances money supply more so it comes during the harvesting period so there will be a lot of activity,” Mwale said.
The operating environment has remained subdued since May 2019 largely due to the after-effects of the May 21 Tripartite Elections.