Key Business Points
- Efficient public procurement can save Malawi up to K169.4 billion per year, according to the World Bank, which can be allocated to essential public services.
- Applying a 10 percent efficient gain to Malawi’s procurement volume, estimated at 11 percent of gross domestic product (GDP), can generate savings of around 1.1 percent of GDP.
- Smarter and transparent procurement practices can free up much-needed resources for public services, highlighting the need for reformed procurement systems in Malawi’s business sector.
The World Bank has emphasized the potential for efficient public procurement to save Malawi a significant amount of money, which can be used to improve public services. Speaking at the Malawi Institute of Procurement and Supply (Mips) Annual Conference in Mangochi, World Bank Country Manager Firas Raad highlighted the benefits of smarter and transparent procurement practices. By applying a conservative 10 percent efficient gain to Malawi’s procurement volume, estimated at 11 percent of gross domestic product (GDP), the country can generate savings of around 1.1 percent of GDP. This translates to a potential saving of up to K169.4 billion per year, a significant amount that can be allocated to essential public services.
Transparent procurement practices are essential for reformed procurement systems in Malawi’s business sector. The World Bank’s estimates suggest that by adopting more efficient procurement practices, Malawi can free up much-needed resources for public services, such as Chipitala cha mafuta (fuel procurement) and chipitala cha nkhani (procurement of goods). This can have a positive impact on the country’s economy, particularly in the sekulu ya biashara (business sector). The potential savings can also be used to support biashara za ndani (local businesses) and wafanyabiashara (entrepreneurs), promoting economic growth and development.
The World Bank’s findings highlight the need for malawi kupanga njira za kunyongeza (Malawi to plan ways to increase efficiency) in its procurement practices. By doing so, the country can kuvutiska ufuso (reduce waste) and allocate more resources to essential public services. The Banza la Mipango ya Maendeleo (Ministry of Development Planning) and other relevant authorities should take note of the World Bank’s recommendations and work towards kulemekeza michango (improving procurement practices) to achieve better outcomes for the country. As Malawi continues to kufanya maendeleo (develop), it is essential to prioritize ufníkuaji wa rasilimali (efficient use of resources) to support the country’s economic growth and development.
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