Business and Finance

Business environment remains harsh—MCCCI

Business environment remains harsh—MCCCI

President of the Malawi Confederation of Chambers of Commerce and Industry (MCCCI), Wisely Phiri, has reiterated that the current economic environment is too harsh for growth.

Speaking during a Times Exclusive interview on TTV, Phiri said continued foreign exchange scarcity, high interest rates and rising inflation put local businesses at a disadvantage.

He singled out high interest rates, at 33 percent, as a hindrance to growth for most businesses.

“When you go to the market, you find that people are not able to buy because of the deteriorating buying power.

“So, if you are comparing with a producer from Southeast China, but they access bank loans at between two and four percent interest rates in their countries, their pricing at 10 percent gives them profit and therefore their products are deemed cheaper than ours on the market,” Phiri said.

He, however, pointed improvements in electricity supply and fuel availability as ideal strides.

In a separate interview, Malawi Investment Trade Centre Chief Executive Officer Paul Kwengwere said trends have, however, improved in the recent past.

“There are a number of macroeconomic developments that we have experienced,” Kwengwere said.

He insisted that most investors still express concern over the tax regime.

In a recent interview, Minister of Trade Sosten Gwengwe said there is a need for continuous engagement between the government and the private sector to ensure that the business environment continues to improve.