MCCCI still gloomy on economic outlook

Despite lowering inflation, a stabilised local currency and positive endorsement of Malawi’s economic management by the International Monetary Fund (IMF), the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) remains pessimistic and believes macroeconomic conditions will remain hostile to business in 2016.

Meanwhile, MCCCI members have ushered in a new executive committee for the chamber which is now being led by transport and logistics entrepreneur, Karl Chokotho and deputised by Farmers Union of Malawi executive director, Prince Kapondamgaga.

Speaking during MCCCI’s annual general meeting in Blantyre on Friday, outgoing president for the chamber, Newton Kambala, said the Malawi economy will remain challenging in 2016 as government continues to rely on domestic resources to fund its activities.

“We foresee the Reserve Bank of Malawi continuing to take a cautionary tight monetary policy stance which will keep interest rates high,” said Kambala.

Kambala said the continued poor ranking in the Malawi Business Climate Survey, the World Bank’s Doing Business Index and the World Economic Forum’s Global Competitiveness ratings shows lack of commitment by authorities to resolve challenges affecting business.

However, Kambala said the only way out for Malawi is increased private sector investment and productivity and challenged the government to improve the business environment through legal reforms, security, cost and access to finance as well as development of appropriate infrastructure.

“Malawi has no option but to industrialise. This means the Malawi economy must create more industries than it is currently having,” said Kambala.

He said a developed industry will not only ensure increased revenue for the government but will also create jobs, produce high value goods, increase exports and make Malawi competitive globally.

Kambala called for MCCCI’s continued strong position on issues that have implications on private sector development.

“MCCCI has to continue lobbying and advocacy efforts and exerting pressure on government using inputs from its members with the view of improving the business environment,” said Kambala.

In his acceptance speech, Chokotho assured members that he will continue lobbying the government to improve the business environment in the country.