Governance and corruption concerns have become central to discussions between Malawi and prospective investors, with businesses increasingly seeking assurances on transparency, policy consistency and institutional predictability before committing capital, the Malawi Investment and Trade Centre (Mitc) has said.
The remarks come weeks after the World Bank’s Country Private Sector Diagnostic (CPSD) identified corruption as the biggest obstacle facing formal businesses in Malawi, overtaking electricity shortages, transport bottlenecks, and tax administration, amid warnings that governance weaknesses are discouraging private investment.
Mitc spokesperson Ndondwa Msaka said governance performance has become a critical consideration for investors alongside macroeconomic stability and sector-specific opportunities.
“Governance and corruption concerns are central to investment discussions, as prospective investors consistently emphasise the need for transparency, accountability and policy consistency before committing capital,” she said.
The concerns echo those raised by governance and business groups following the release of the World Bank report.
Centre for Social Accountability and Transparency executive director Willy Kambwandira previously said corruption had evolved from an isolated governance challenge into a structural cost of doing business, arguing that investors are discouraged not only by bribery but also by unpredictable decision-making, opaque procurement systems, selective application of the law and weak contract enforcement.
Similarly, Chamber for Small and Medium Businesses Association executive secretary James Chiutsi said smaller firms bear the greatest burden because they lack the capacity to absorb unofficial costs, describing corruption as the difference between paying workers and closing a business.
Msaka, however, said government has introduced reforms to improve investor confidence, including streamlining approvals through the Mitc One-Stop Service Centre, strengthening oversight mechanisms and digitising government services.
“These measures have been received positively by investors, as they demonstrate a commitment to reducing governance bottlenecks and curbing corruption,” she said.
She said despite Malawi having a comprehensive legal and institutional framework to combat corruption, strengthening governance institutions remains essential to improving the country’s competitiveness as an investment destination.
According to Msaka, stronger enforcement of the Whistleblower Protection framework would encourage reporting of corruption without fear of retaliation, while more effective Institutional Integrity Committees across government ministries and agencies would strengthen accountability in procurement and service delivery.
“Collectively, these reforms would not only reduce corruption risks but also improve institutional predictability, an essential factor for attracting and retaining both domestic and foreign investment,” she said.
