Group fears for SMEs

The Economic Empowerment Action Group (EEAG) has said the current political instability and political risks closure of some small and medium enterprises (SMEs).

Speaking in an interview on Monday, EEAG president Lewis Chiwalo called for stakeholders to sober up and put their personal interest aside.

Chiwalo pointed out that the whole elections process has been flawed noting that this kind of tension slows down businesses.

“As I am speaking now ,a number of businesses have slowed down. The elections have failed and as a nation we should leave our personal interests aside and find a way forward. Malawi is a fragile economy and we cannot afford to have political instability.

“The Malawi Electoral Commission (MEC) should ensure that these elections are credible otherwise this does not augur well with small businesses. We have not done much in terms of growing our economy and this impasse is going to be bad for us,” said Chiwalo.

He further advised the next government should ensure a level playing field so that businesses should not have political affiliation.

He argued that contracts or jobs should be awarded based on competencies and skills and not political affiliation noting that the current political disagreements are because people look up to benefit from the next government.

Chancellor College economics professor Ben Kaluwa and the Indigenous Businesses Association of Malawi (Ibam) on Monday also said the current political impasse can generate negative effects on business environment and investor confidence.

Kaluwa and Ibam president Mike Mlombwa said the economy might also be affected by a prolonged political impasse as several businesses have been shut down over fears of a turmoil engulfing the country.

Mlombwa asked stakeholders to take heed to reason and not personal interests.

Malawi held tripartite elections which was marred by logistical nightmares. Since then, there has been a circus with President Joyce Banda invoking her powers to nullify the elections and saying elections should be held in 90 days in which she would not stand.

So far, political parties have agreed in principle to audit the centres where MEC noted glaring anomalies which required a recount.