The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has said the economic landscape remains shaky and not entirely conducive for businesses to thrive.
The sentiment comes amid registered improvements in key macroeconomic fundamentals in the past two years, including lowering inflation, reduced interest rates and a stable exchange rate.
However, the chamber feels the industry is still haunted by high cost of doing, business and energy woes among other challenges.
MCCCI Chief Executive Officer, Chancellor Kaferapanjira, said the registered economic stability alone is not enough to motivate the private sector to invest in the real sector.
“Factors such as electricity supply, quality and productivity of labour, ease of doing business among others, remain major problems. The private sector will respond on the basis of number factors,” Kaferapanjira said.
He, however, said the industry appreciates efforts the Reserve Bank of Malawi (RBM) has deployed in ensuring economic stability.
Kaferapanjira then called on other government agencies to play their roles in achieving the desired growth targets.
RBM recently said private sector credit has been growing since last year, signifying private sector confidence in the economy.
Real private sector credit growth was recorded at 10.9 percent in July 2019, after mostly being negative since 2012.
In nominal terms, the outstanding stock of credit to the private sector was recorded at K531.0 billion in July 2019.
Ministry of Finance, Economic Planning and Development Spokesperson, Davis Sado, said the country must understand that healing an economy is a process and that the government has made necessary strides.
“If we look back and analyse the situation from where we are coming, you will note that the government has worked hard to stabilise the economy amid some natural shocks. There have been interventions and economic policies have been formulated to instill confidence in the private sector and propel growth,” Sado said.
He said with sound economic policies, the country now has a stable exchange rate, single digit inflation, improved import cover and a generally conducive environment for doing business.
Commentating on the energy woes, Sado said the infrastructure and the generation capacity has kept on deteriorating with time but the government has started acting towards having long-term solutions.