Govt commits to supporting businesses

Minister of Trade and Industry Sosten Gwengwe says government is committed to supporting the private sector and reinforcing the foundations for strong growth, resilient and inclusive development.

He was speaking when he officially opened the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) 2024 Business Leaders’ Summit in Mangochi.

Gwengwe said shocks which the economy has been experiencing have worsened the macro-economic imbalance as evidenced by unsatisfactory economic growth, scarcity of forex, high inflation, widening fiscal balance and higher interest rates.

He said: “This imbalance, coupled with other impediments, have increased further the production costs for Malawian businesses. It is very challenging for the business sector to compete in such unstable environments.

“However, I want us to take comfort in that, out of all these challenges, if we can indeed re-engineer the way we do our businesses, soon we will see the opportunities behind the shocks and start driving the economy in the right direction.”

The minister observed that Malawi has a huge preferential on the global market, but production and productivity deny the country from utilising the market opportunities.

Said Gwengwe: “My Ministry has taken strides in developing a conducive regulatory framework recently, with the enactment of the Investment and Export Promotion Act and Special Economic Zones Act. The Ministry is continuing with the reforms aimed at streamlining and innovating business processes in order to efficiently deliver our services to you.”

On his part, MCCCI president Lekani Katandula said “unprecedented health shocks—Covid-19, cholera outbreak and the Russia-Ukraine invasion have affected the economy and continue to pose a threat to businesses and, of course, the achievement of our developmental aspirations”.

Business Leaders’ Summit is an annual conference hosted by MCCCI to provide business captains an opportunity to come together to unpack pivotal issues affecting the economy and identify strategies that can positively impact the business environment in Malawi.

“During the summit last year, our deliberations centred on Transformational Leadership in Turbulent Times. This year, our key theme focuses on shocks and how we can strengthen our resilience as businesses to move the country forward.”