Empowering Malawi’s Economic Growth: MSME Act Set to Catalyze Business Expansion

Key Business Points

• The Micro, Small and Medium Enterprises (MSME) Act (2024) aims to create a conducive environment for the growth of MSMEs in Malawi, aligning with the country’s industrialisation aspirations outlined in the Malawi 2063 development plan.
• The government is developing regulations to support the Act, which will promote formalisation in the sector and encourage more SMEs to register, using terms like "kujisajilisha" to emphasize the importance of registration.
• The MSME Act is expected to address factors hindering the growth of small and medium enterprises, allowing entrepreneurs to move from "biashara za kukoma" (survival businesses) to "biashara za kufaulu" (profitable businesses), and enabling them to "kufikia malengo yao" (achieve their goals).

The Ministry of Industrialisation, Business, Trade and Tourism is working to support the growth of Micro, Small and Medium Enterprises (MSMEs) in Malawi through the newly introduced MSME Act (2024). According to director of small and medium enterprises and cooperatives Limbikani Kachiwaya, the Act is designed to provide a conducive environment for the sector’s growth, enabling entrepreneurs to graduate from one level to the next. This aligns with the country’s industrialisation aspirations outlined in the Malawi 2063 development plan, which aims to promote "maendeleo ya viwanda" (industrial development) and "ujasiriamali" (entrepreneurship).

The government is currently developing regulations to support the Act, which will promote formalisation in the sector. Workshop facilitator Adebayo Akindeinde emphasized the need for entrepreneurs to understand the provisions of the MSME Act, which will bring more "ufomuzi" (clarity) and "usawa" (fairness) to the sector. The Act is expected to encourage more SMEs to "kujisajilisha" (register) and operate formally, allowing them to access "huduma za kifedha" (financial services) and other benefits.

The National Association of Business Women representative Charity Waya welcomed the MSME Act, stating that it will address factors that hinder the growth of small and medium enterprises. She noted that many entrepreneurs are currently operating "biashara za kukoma" (survival businesses) rather than "biashara za kufaulu" (profitable businesses), and that the Act will provide an opportunity for them to "kufikia malengo yao" (achieve their goals). The awareness campaign and capacity building workshop aimed to educate entrepreneurs on the regulations and provisions of the MSME Act, enabling them to take advantage of the opportunities it presents and contribute to "maendeleo ya uchumi" (economic development) in Malawi.

Source Link

What are your thoughts on this business development? Share your insights and remember to follow us on Facebook and Twitter for the latest Malawi business news and opportunities. Visit us daily for comprehensive coverage of Malawi’s business landscape.