Malawi’s businesses have given the year 2024 a mixed rating, citing both positive and negative developments. On the positive side, trade facilitation initiatives and the signing of the Simplified Trade Regime with Mozambique were notable achievements. However, these gains were overshadowed by high inflation, foreign exchange shortages, and a volatile exchange rate, which subdued industry’s capacity utilization to just above 50% ¹.
According to Daisy Kambalame, CEO of the Malawi Confederation of Chambers of Commerce and Industry, most businesses faced challenges due to macroeconomic imbalances, particularly scarcity of foreign exchange, rising inflation, and a volatile exchange rate. Foreign exchange shortages remained a critical issue throughout the year, with manufacturers struggling to secure vital inputs for production.
Despite these challenges, there were some positive developments, including the enactment of the Micro Small and Medium Enterprises (MSME) Bill into law, which is expected to strengthen regulation and support for the sector. The government’s push to promote railway infrastructure for fuel importation is also expected to improve efficiency in supply of fuel and reduce operational costs.
However, the persistent foreign exchange scarcity and high inflation rate continue to affect businesses, with most industries operating at 50% capacity. The Minister of Trade and Industry, Sosten Gwengwe, has challenged industry players to be innovative and produce goods for the export market to generate foreign exchange.
