United Nations Development Programme (UNDP) country representative Fenella Frost has called for increased support to Malawi’s private sector to weather the prevailing tough economic conditions.
She said this in Lilongwe on Friday at the launch of growth accelerator’s ninth edition, which has opened up applications for the next cohort, focusing on technology-based business concepts that will receive up to $40 000 (about K70 million) financial and technical support.
Frost said access to finance for businesses is a challenge, as such, there is need for more collaboration by partners to provide opportunities as the economy needs a thriving private sector.
“Like many countries, Malawi is facing challenges and foreign currency availability is a big one.Foreign exchange volatility is causing a lot of problems for private sector,” she said.
Frost, however, disclosed that UNDP is currently engaging Ministry of Finance and Economic Affairs to collaborate on structural transformation, addressing structural problems that are causing the economic challenges.
She said: “We know the leadership is up to the Government of Malawi, but they are not alone. We know there are a number of development partners playing a key role, including the World Bank, the International Monetary Fund and other donors.
“At UNDP, on the other hand, we are playing our role, helping the government to address structural issues, but also supporting businesses.”
With interest rates above 30 percent, inflation rate at 33.9 percent and official and private sector foreign reserves at below three months of import cover, the industry has been experiencing harsh conditions to sustain, grow and create jobs.
However, through growth accelarator, the UNDP with support from German and Norwegian governments, provides business up-scaling support to entrepreneurs in various sectors.
German Ambassador Ute Konig said the country’s developmental goals can be met through job creation; hence, government’s support of growth accelerator, which is harnessing business opportunities for entreprenuers.
Growth Accelerator project manager Tambulani Chunga said the initiative has, so far, helped to establish 80 businesses since its inception, creating thousands of jobs and producing value-added products that help in import substitution.
Through KFW development bank, Germany has been supporting growth accelerator since 2016, financing the previous five cohorts and is also supporting the next cohort.
KFW, is providing 24 million euro (about K48 billion) for the initiative since 2016.
