Firms call for urgency in resolving economic woes

Private sector representatives have called for a “sense of urgency” in addressing challenges that have subdued the country’s economic performance.

Speaking in Blantyre on Friday during a private sector engagement breakfast hosted by the National Planning Commission (NPC) as part of its oversight role in the implementation of the Malawi 2063, Old Mutual Malawi plc chief executive officer Edith Jiya said there is great potential to quickly turn around the country’s economy.

She cited investments in mega farms and tourism, saying authorities should move with speed to provide an enabling environment for the private sector to thrive.

Said Jiya: “We can address the foreign exchange challenges through investments in areas such as mega farms where there are huge opportunities.

“Within three years, mega farms alone can surpass tobacco in terms of the foreign exchange they will generate.”

She called on government to strike bilateral agreements with countries such as China where there is a huge market for crops earmarked for mega farms such as legumes and macadamia nuts.

“Some big markets need government-to-government agreements to open up. China is a good a example. We can’t export to China without government facilitation,” said Jiya.

She said market controls such as minimum price regulations are also restricting investment in the production of many crops in the country, adding that investors cannot come where prices are regulated.

Jiya said government also needs to urgently address electricity and fuel supply challenges that have stalled the country’s productivity.

“Government cannot do it alone. Partner with investors who have the money instead of borrowing to finance every development project,” she said.

Ecobank Malawi managing director Raymond Fordwuo urged government to remove visa restrictions, saying they are stifling the development of the tourism industry.

He said: “Everybody needs a visa to come to Malawi except those from Southern African Development Community.

“You must learn from Rwanda, which is earning big in tourism, especially international conferences because it has no visa restrictions.”

Other speakers observed that some new laws being introduced are making the business environment more restrictive and urged government to accommodate private sector views by enacting laws.

“The new laws on land, for example, are counter to government efforts to establish mega farms. You can’t have mega farms when your land laws are restricting land ownership to just 1 00 hectares,” said one business executive.

NPC director general Thomas Munthali said they have taken note of all the issues raised by the private sector.

He said the government needs to partner the private sector to facilitate increased production and exports so that the country can generate enough revenue to support economic growth.

“The economy can’t grow without strategic partnerships with the private sector,” he said. NPC is championing the implementation of MW2063, the country’s long-term development plan.