Private sector players have reiterated that persistent foreign exchange supply shortages, unattractive tax structures, weather shocks and inadequate energy supply continue to undermine growth prospects.
They say economic woes and the challenging operating environment continue to stifle the industry.
This came out during the Business Leaders’ Summit organised by private sector umbrella body, the Malawi Confederation of Chambers of Commerce and Industry (MCCCI).
In an interview, MCCCI immediate past President Lekani Katandula said in the current scenario, the private sector continues to experience challenges that stifle investment.
“We need to find ways of making Malawi a more competitive business environment.
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“Power supply, for instance, can be more abundant and more consistent, and make it easier for industry to be more competitive,” Katandula said.
He lamented corporate tax, at 40 percent, as the highest in the region, saying it is affecting industry growth.
Minister of Industry and Trade Sosten Gwengwe said the government is committed to coming up with policies that make the operating environment conducive.
“There have been a lot of new policies that are being adopted by the Cabinet. There are new laws that Parliament is passing and, obviously, if you look closely, you would see that the aim really is to streamline business processes to make sure that our private sector is incentivised in the right way.
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“It is about production and value addition and that should achieve either import substitution or more exports and more foreign exchange for the country,” Gwengwe said.
He added that every presentation of the budget comes with some tax reviews which come from listening to what the private sector is saying.
“I think the key is for the government to be responsive to have a listening ear and be able to look at the merits of some of these challenges and work with the private sector to address them rather than just brushing them off,” Gwengwe said.
A recent Financial and Economic Review published by the Reserve Bank of Malawi indicates that the manufacturing sector is poised to grow by 4.4 percent in 2024.
The growth forecast for the sector in 2023 was adjusted down to 0.4 percent during the November 2023 estimates from 1 percent.
Meanwhile, the chamber held an elective annual General meeting during the summit where Wisely Phiri of Sparc Systems Limited was voted as the new president of MCCCI deputised by Arnold Mbwana.
Cecilia Mseteka, Emmie Shaba-Mzungu and Mackson Ng’ambi were elected MCCCI councillors for the Northern Region, Charles Zimba, Goodwin Ng’oma and Thokozani Unyolo for the Central region while Akash Deep, Byson Mkhomaanthu and Dorothy Chapeyama for the South.
