Malawi is this September set to open the Malawi Investment Bank to promote local investment and maximise production of goods that will compete favourably on the international market.
Malawi Investment and Trade Centre (Mitc) chief executive officer Clement Kumbemba said this on Thursday in Blantyre during a workshop Mitc organised for the private sector and authorising bodies.
He said with the coming in of the bank, local companies will be able to buy shares from other public companies or get enough capital to improve their production.
Kumbemba: There will be enough capital
Kumbemba further said in the past the private sector used to contribute 20 percent to the gross domestic product (GDP), but the percentage has dropped to 10 percent due to various challenges facing the industry.
He said: “Malawi is a signatory to a number of regional and international trade blocks that lead to opening up of our borders and goods are legitimately coming in the country, thereby subjecting local manufacturers to stiff competition.”
Ahmed Sunka, chairperson of manufacturing companies in the country, called on Mitc to develop strategies that may act as incentives for local companies to grow and also allow newly established companies time to develop.
He said many local companies are investing in neighbouring countries such as Zambia instead of investing and developing Malawi due to lack of incentives in manufacturing as well as agro-processing.
Said Sunka: “Lack of export incentives to promote exports, tax incentives such as reduction of corporate taxes for newly established companies and infrastructure incentives is making manufacturing more expensive in Malawi.” n
Business News – The Nation Online