Business News

Amended laws tackle SMEs challenges, says ministry

Ministry of Trade and Industry says amendments to the Business Licensing Act (2012) and the Control of Goods Act (2018) have helped to protect small businesses, creating a sustainable pathway for their expansion and growth.

The ministry’s Principal Secretary Christina Zakeyu said this on Tuesday in Lilongwe when she appeared before the Legal Affairs Committee of Parliament on Tuesday to update the committee on the impact of recent amendments to the Business Licensing Act and the Control of Goods Act, which were gazetted on May 31 and August 15 2024, respectively.

Zakeyu: Government had
engaged major retailers

Following her presentation, committee members questioned Zakeyu on how the ministry is leveraging the Business Licensing Act, which seeks to license non-Malawian businesses to provide actionable data to the government on potential revenue streams while ensuring that local businesses remain competitive.

Regarding the Control of Goods Act (Import and Export), the committee inquired whether the amendment, has been effective in regulating imports controlled goods such as poultry products.

This concern arose following reports that some retail chains were importing restricted poultry products.

Member of the committee Bright Msaka, who is lawmaker for Machinga Likwenu, noted that some retail chains such as KFC, may need to import poultry products to comply with franchise agreements signed with their parent companies.

“A company operating under a KFC franchise agreement is required to produce chickens of a quality [taste and texture] comparable to that offered in the United States. This is why they may need to import,” he said.

In response, Zakeyu said that some of the Burundians in question had been naturalised and, therefore, would be considered Malawians under the law.

“Some have been naturalised by marriage and others have passports and national identity cards, so we cannot regulate them,” she said.

Zakeyu said the newly adjusted licence fees, which were increased to reflect market value following the kwacha realignment in November last year, will help government collect more revenue.

Addressing concerns about retail chains importing poultry, Zakeyu assured the committee that the government had engaged major retailers, including KFC and Shoprite, as well as local producers to ensure that local products meet the standards required by franchise agreements.

“Malawi has been exporting chickens from as far as the Democratic Republic of Congo, so we are capable of producing high-quality products.

“We are working with local producers and retail shops to prioritise local purchases and support import substitution,” she said.

On the issue of small businesses, Zakeyu noted that limited access to finance remains a significant barrier to the growth and expansion of local businesses.

As a result, she said the ministry is collaborating with the Ministry of Finance and Economic Affairs to provide low-cost financing to small businesses.

One of the key initiatives in this regard is the Financial Inclusion and Entrepreneurship Scaling project, a five-year initiative implemented by the Reserve Bank of Malawi with support from the World Bank.

The project seeks to increase access to financial services and enhance the entrepreneurial capacity of small businesses.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button