MCCCI urges reforms, bemoans rising debt

Boosting Business Growth: Call to Action for Malawi’s Economic Reforms

Post was last updated: May 27, 2025

Key Business Points

  • Overhaul the Industrialisation Policy: The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) is calling for a complete overhaul of the Industrialisation Policy to align with Malawi 2063 goals and attract investments.
  • Support Small and Medium Enterprises: Incentives such as tax breaks, grants, and land access are essential to boost small and medium enterprises, economic diversification, and job creation.
  • Address Public Debt: The growing public debt is crowding out the private sector, and businesses are meeting hurdles to access funding from commercial banks, highlighting the need for government intervention.

The Malawi economy is facing several challenges, including a growing public debt that is crowding out the private sector. According to Reserve Bank of Malawi data, the public sector has accessed K6 trillion in credit, while the private sector has accessed only K1.5 trillion as at December 2024. This has resulted in a public debt stock of K16.19 trillion, or 86.4 percent of the gross domestic product (GDP), as at September 2024.

In his address, President Lazarus Chakwera said the private sector is supposed to drive the economy, and the role of government is to grow businesses, not fight them. He emphasized the need for the government to listen to the grievances of businesses and work with them to find solutions. The government’s support for the private sector is crucial for economic growth.

The 35th Malawi International Trade Fair, held under the theme ‘Promoting economic growth through private sector-led economic transformation’, has seen an increase in the number of exhibitors to 186 from 142 last year. This is a testament to the resilience of the Malawian nation, which is working to overcome economic challenges through industrialisation and trade. Minister of Trade and Industry Vitumbiko Mumba said the ministry is implementing strategic interventions to support industrialisation and export growth, including Special Economic Zones, promotion of agro-processing and value addition, and the Buy Malawi Strategy.

For businesses, the fair has provided opportunities to secure new markets and orders. Bantu Arts and Craft chief executive officer Edward Malunga has already secured orders for his shoes, and is hopeful that the fair will bring in even more opportunities. Similarly, Zaphama Enterprises’ Alice Nayesa is looking to secure new markets for her value-added agricultural products.

The fair comes at a time when Malawi is still grappling to narrow the trade gap, with the country exporting goods valued at roughly $1 billion against imports of $3 billion, creating a negative trade balance. Addressing the trade gap and supporting local businesses will be crucial for Malawi’s economic growth. As the country moves forward, it is clear that the private sector will play a key role in driving economic transformation, and the government must continue to support businesses to achieve this goal.

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Vanessa Banda
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