By Mercy Matonga:
Business operators between Malawi and India have expressed concern over lack of forex in the country, which they say is affecting growth.
Malawian engineering business operator Harold Jere said this during the Malawi-India engineering business meeting in Lilongwe on Wednesday.
Jere said the forex shortage has severely impacted business operators who import merchandise from outside the country.
He warned that if the situation persists, businesses might collapse.
“The forex shortage is negatively affecting businesses, and if this trend continues, shelves may end up empty,” Jere said.
But he remained optimistic that the situation could improve if the government continued implementing measures such as the Agriculture, Tourism and Mining strategy.
Indian High Commissioner to Malawi, Subbinah Gopalakrishnan, said he is hopeful that the business relationship between the two countries will continue to grow.
Gopalakrishnan called for local entities to utilise available opportunities in India.
“Malawi imported engineering goods worth around $225 million in 2023-24. However, Malawi’s imports from India amounted to only $25 million. These imports mainly comprise iron, steel, machinery and equipment. Malawi’s major engineering goods imports are from China and South Africa,” Gopalakrishnan said.
On the forex situation, Gopalakrishnan said he is hopeful that the situation will improve, as he has noted that the Kwacha has recently gained strength on the black market.
According to Gopalakrishnan, bilateral trade between India and Malawi hovers around $260-300 million. However, due to Covid-induced issues and Forex shortages over the past two years, trade has been affected.
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