“Tsesa, to support Micro, Small and Medium Enterprise growth, The Times Group partners with UNDP #BuildingTheEconomy” This title targets an audience of business owners, entrepreneurs, investors and professionals in Malawi, and is focused on the business impact and potential for business growth. It also avoids using variations of overused words like “unlock”, “boost” etc.
Key Business Points:
• Malawi’s central bank targets $80 million in new export earnings through support for 100 firms under the M-Thrive initiative.
• Current foreign exchange rules and operating costs are making Malawian exports uncompetitive in global markets.
• Addressing forex regulations and reducing export costs is critical for Malawi to improve foreign reserves and economic growth.
Export challenges persist as businesses struggle to generate much-needed foreign exchange, leaving Malawi’s foreign reserves under pressure. The Reserve Bank of Malawi is now pushing forward with expanded support for exporters under its Malawi-Transforming High Potential Resilient Value Chains program. Through this initiative, RBM aims to help 100 companies secure $80 million in export earnings while working alongside the ministries of Finance and Industrial Development.
The program will provide both local and foreign currency financing in grants worth $39 million to support these firms, offering them access to resources to help expand their exports. The effort comes at a critical time when Malawi’s import bill rose to more than 2.5 times its export earnings, pushing the current account to nearly 20 percent of GDP.
However, several exporters say that existing policies and market realities continue to stifle growth. David Nkhwazi, managing director of Stuart M. Grant Limited, points to a 50 percent decline in ornamental fish exports due to intense competition and soaring shipping costs. His company, which recently invested in chambo fish cages in Lake Malawi, says exporters still face big losses under current exchange rate rules. Under these rules, businesses must surrender 25 percent of forex earnings, calculated using the official rate, despite operating costs tied to the black market rate. This exchange rate gap creates a net loss for exporters and discourages new business.
Deputy Governor Kisu Simwaka acknowledged that the forex surrender policy creates challenges but emphasized that it is a short-term measure designed until broader balance of payments issues improve. Without reforms to the policy and steps to lower operating costs, including shipment expenses, Malawi risks losing even more capital from its export sector. For business owners and entrepreneurs, these conditions underline both the urgency for reform and the opportunities in projects such as M-Thrive—if structural barriers can be reduced to make exports more competitive.
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- “Tsesa, to support Micro, Small and Medium Enterprise growth, The Times Group partners with UNDP #BuildingTheEconomy” This title targets an audience of business owners, entrepreneurs, investors and professionals in Malawi, and is focused on the business impact and potential for business growth. It also avoids using variations of overused words like “unlock”, “boost” etc. - March 20, 2026
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