Small and Medium Enterprises Development Corporation (Smedco) says the revival of dormant factories can strengthen entrepreneurship programmes and help transform small businesses into drivers of industrialisation, job creation and economic growth.
In an interview on Friday, Smedco public relations officer Micah Nthere said rehabilitating idle manufacturing plants is part of efforts to maximise the use of existing assets, expand markets for locally produced goods and support economic transformation.
He said the initiative can also advance the Buy Malawi agenda by promoting value addition and reducing reliance on imported products.
Said Nthere: “For instance, the Machinga Oil Factory is now processing 1 000 kilogrammes of sunflower into 230 litres of refined cooking oil.
“This means Malawians can use cooking oil produced locally instead of imported products. At the same time, the country can export processed goods and earn much-needed foreign exchange.”
He said Smedco, formerly Small and Medium Enterprise Development Institute, has so far revived 10 factories, creating jobs for local communities, including machine operators and other skilled workers.
Nthere said the programme will be expanded in phases to other parts of the country.
“In the next phases, we plan to revive factories in Ntcheu, Mwanza, Lilongwe, Nkhata Bay, Nkhotakota, Dowa, Karonga and Chitipa. Our goal is to eventually reach all of them,” he said.
University of Malawi economics lecturer Edward Leman said the initiative goes beyond value addition and supports the objectives of Malawi 2063, the country’s long-term development blueprint that seeks to turn Malawi into a lower middle-income economy by 2030 and an upper middle-income economy by 2063.
“The revival of these factories directly aligns with Malawi 2063, particularly the goals of increasing manufacturing, industrialisation and value addition,” he said.
Small-scale Business Importers and Exporters Association of Malawi chairperson Robert Nachamba hailed the programme, describing it as a potential catalyst for import substitution and export growth.
“If implemented successfully, these factories can increase production, boost exports and help generate foreign exchange,” he said.
However, Nachamba urged the government to address persistent electricity and fuel shortages, warning that both continue to undermine manufacturing productivity.
Smedco has recently revived factories in Thyolo, Machinga, Mulanje and Zomba, while also purchasing surplus tomatoes from farmers for processing and value addition.
