By Kingsley Jassi:
The government plans to task State-owned enterprises (SOEs) to turn around operations and drive transformation, the Treasury has said.
Secretary to the Treasury Cliff Chiunda said at a pre-budget consultation meeting in Lilongwe that it would no longer be business as usual for SOEs.
“We will be meeting with the chief executives of all the parastatals and challenge them why they should still be employed,” Chiunda said.
The government has strong presence in agriculture, finance, water, energy, tourism and aviation.
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An annual performance report for the 2024-25 financial year shows commercial SOEs turned around their performance from a combined loss of K66.5 billion in 2024 to a profit of K34.1 billion this year.
However, a World Bank Public Finance Review estimates that transforming commercial SOEs, which are largely in financial stress, would not only relieve the Central government of the financial burden but also contribute to revenue, job creation and industrialisation.
Malawi struggles to attract investments in key sectors, with calls intensifying for the government to lead in investment.
However, Public Private Partnership Commission Chief Executive Officer Patrick Kabambe said counting on public resources for investment was unrealistic, given the tight fiscal space, hence efforts to attract private sector investment.
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“It is ideal for the government to put money for investment in the budget but with the aid flow closing, it is difficult. It’s a matter of combining all approaches and we’re still pushing for a number of projects,” Kabambe said.
Local investor Napoleon Dzombe decried low investment facilitation by the government in critical infrastructure to ease entry.
