Investment will boost growth—Chakwera

President Lazarus Chakwera has called for investment in strategic sectors of agriculture, tourism and mining as they have potential to boost the country’s economic growth.

He said this yesterday at Bingu International Convention Centre in Lilongwe during the second edition of the Malawi Investment Summit.

The summit brought together industry experts from different sectors to learn about economic developments, network with stakeholders and identify trade and investment opportunities in line with the country’s long-term development strategy, Malawi 2063.

In his keynote address, the President said the country has to overcome two key obstacles, notably dysfunctional oversight and institutional systems and vulnerability to external shocks to achieve its dream of the conditions for a producing, exporting, and forex-generating economy.

He said his administration has implemented a number of reforms, including the establishment of the Presidential Delivery Unit and the Presidential Private Sector Council to identify bottlenecks and advise him on the elements of the private sector that discourage business, respectively, to create a conducive environment for the local industry to thrive.

Said Chakwera: “Our number one priority is the economy and that necessarily means empowering and enabling the private sector with the goal of making Malawi the best partner for business and investment.”

The Economist Africa editor Jonathan Rosenthal, who was the director of the event, said the forum is important because it helps countries to discuss their national policies and creates an opportunity for leaders to justify their policy actions and directions.

“There are many challenges. The Russia-Ukraine war has disrupted food and energy markets. People in Africa are paying for the sins of the richer countries. There is a need for constructive dialogue between the government and industry experts to find the solution,” he said.

In his contribution, the President’s chief economic adviser Chancellor Kaferapanjira said debt restructuring will be important in restoring economic stability in the country.

He said the government spends more than 70 percent of its national budget on debt payments and other non-negotiable expenses, a development that leaves the government with limited fiscal space to invest in other economic activities.

Kaferapanjira, who is also Malawi Confederation of Chambers of Commerce chief executive officer, said government will prioritise getting low-cost loans, preferably with interest rates lower than 35 percent, as part of its debt management strategy to rein in mounting debt.

The first Malawi Investment Summit was held in 2022 in Lilongwe.

The 2023 edition of the summit came on the eve of the Malawi Investment Forum which starts today in Johannesburg, South Africa.

This year’s forum will be held under the theme ‘A prosperous Malawi through strategic investment partnerships’.

Minister of Agriculture Sam Kawale and his Cabinet colleagues Ibrahim Matola for Mining and Vera Kamtukule of Tourism are expected to travel to South Africa today to address potential investors from that country.

The Malawi Consulate in South Africa is hosting the forum in conjunction with the Malawi Investment and Trade Centre.