Empowering Malawi’s Female Entrepreneurs: Bridging the Government Contract Gap
Key Business Points
- Women-led businesses in Malawi access less than one percent of public sector contracts, highlighting a significant gap in participation and gender disparity in public procurement.
- The main reasons for this low access rate are lack of qualification for government contracts and limited awareness of the bidding process among women-led businesses.
- Increasing awareness and formalization of women-owned businesses can help address these challenges and improve participation in public procurement, as emphasized by the Ministry of Gender, Children and Social Welfare and organizations like the Graca Machel Trust.
The recent study by the Common Market for Eastern and Southern Africa Federation of Women in Business Malawi Chapter has shed light on the disproportionately low share of public procurement opportunities awarded to women-owned businesses in Malawi. According to the study, since the introduction of the MSME Order in 2020, women have accessed only K23.75 billion, which is 0.44 percent of the overall value of all procurements. This stark reality underscores the persistent gender disparity in public procurement, with women constituting 52 percent of the country’s population yet facing significant barriers to economic opportunities.
The study attributes the low participation of women-led businesses in public procurement to challenges in meeting financial and technical requirements, limited knowledge of procurement procedures, and the complexity of the application process. To address these challenges, the Ministry of Gender, Children and Social Welfare is increasing awareness campaigns on the Gender Equality Act, encouraging women entrepreneurs to formalize their businesses and form groups to improve capacity. The Graca Machel Trust, which funded the study, emphasizes the need to identify barriers and advocate for change to make structures more friendly to women and enable them to trade with their own government.
Public procurement accounts for approximately 75 percent of Malawi’s national budget, making it a critical driver of economic growth. The National Statistical Office highlights the importance of public procurement in driving economic growth, and the need to increase participation of women-led businesses in this sector. As Selina Mwenelupembe, chairperson of the Common Market for Eastern and Southern Africa Federation of Women in Business Malawi Chapter, notes, there is a need to address the gap in participation of women in public procurement and ensure that women-led businesses can access more contracts and contribute to the country’s economic growth. This can be achieved through zyatama, or empowerment, of women entrepreneurs and kugwiritsa ntchito, or utilization, of available resources to support women-led businesses. By addressing these challenges and increasing participation of women-led businesses in public procurement, Malawi can promote tsogolo la patsogolo, or a brighter future, for all its citizens.
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