Key Business Points
- The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) is urging the government to stabilise the economy and implement investment-friendly policies to support the private sector.
- The country’s private sector is operating below capacity due to microeconomic challenges, with many companies reporting inefficiencies and reduced operational capacity, often as low as 60 percent.
- The ease of doing business is a critical area that requires attention from the new administration, with a need for sufficient dialogue between the government and the private sector to avoid inadvertently hindering operations.
The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has called on the government to work towards stabilising the economy and creating investment-friendly policies. According to MCCCI Chief Executive Officer Daisy Kambalame, the business community is encouraged by the peaceful election period and smooth transition, which sets a tone for economic recovery. However, Kambalame identified ease of doing business as a critical area requiring attention from the new administration. She cited instances where well-intentioned policies have inadvertently hindered operations due to insufficient dialogue between the government and the private sector.
Kambalame noted that many companies have been reporting inefficiencies in their systems, resulting in reduced operational capacity. Some companies are operating at as low as 60 percent of efficiency, while others are operating at around 70 percent. This reduced operational capacity signals a shrinking economy with far-reaching implications. The MCCCI chief warned that limiting access to forex (foreign exchange), even for companies that are exporting, can hinder their ability to import materials needed for production.
In his first speech after his election as president, President-elect Peter Mutharika said he would prioritise issues that need immediate solutions, including addressing food, fuel, and forex shortages. Meanwhile, the MCCCI’s Economic and Business review noted that the business environment in Malawi during the first half of 2025 remained challenging but showed signs of cautious recovery. The review also noted that government borrowing from the domestic market surged, crowding out private sector investment, while a widening trade deficit and declining foreign reserves added further strain. As the new administration takes office, it is essential to address these challenges and create a zithetezo ya kale (conducive business environment) to support the growth of the private sector and promote economic development in Malawi.
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.
