Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says the 2025/2026 National Budget lacks sufficient measures to support existing businesses.
In its 2025/26 Budget Analysis Business News has seen, MCCCI says while attracting new investors is essential, revitalising the current private sector and supporting emerging industries is equally important to addressing immediate economic challenges.
The chamber observed that the proposed fiscal plan is consumption-driven, with a share of development expenditure declining to 25 percent from 29.6 percent in the previous fiscal year.
Reads the analysis in part: “This shift has raised concerns about the government’s commitment to infrastructure development, industrialisation and investment in key growth sectors, which are critical for job creation, economic diversification, and sustainable development.
“MCCCI has noted a projected increase in domestic revenue to K4.35 trillion for 2025/2026 up from k3.11 trillion, but is concerned about the lack of clear strategies to expand the tax base. This is particularly troubling given the economy’s underperformance.”
The development comes as businesses continue to face persistent challenges, including high taxes, foreign exchange shortages, high production costs, limited access to credit and fuel supply disruptions.
According to the 2024 Malawi Business Climate Survey, 82.8 percent of businesses operate below 75 percent capacity, threatening the country’s economic goals, including a recommended target of six percent growth.
The chamber has since called on Treasury to use realistic budget assumptions, noting that gross domestic growth (GDP) has often been overestimated and inflation underestimated, resulting in significant discrepancies in economic performance.
In the 2025/26 financial year, Treasury projects GDP growth at 3.4 percent, up from 1.8 percent recorded in the previous year, while the average inflation rate is expected to decline to 22.3 percent in 2025 from 32.3 percent in 2024.
Presenting the budget in Parliament recently, Minister of Finance and Economic Affairs Simplex Chithyola-Banda said the 2025/26 National Budget reaffirms the government’s commitment to production-led growth, fiscal consolidation and enhanced revenue mobilisation to address economic challenges.
He said: “Government is optimistic that despite all the challenges that have been encountered, the economy is getting back and will surely get back on the recovery trajectory.
“The dividends of our focus on enhancing production, through strategic investments in agriculture, tourism and mining, will soon materialise.”
