Malawi is targeting double-digit growth rates for several key industries by 2025 which will be shift from historical reliance on a single cash crop, tobacco. In a presentation titled ‘Investment Opportunities and Financing Instruments for Building a Better Economy’ at the Economics Association of Malawi (Ecama) annual conference, FDH Bank Head of Treasury and Investment Banking Esnat Suleman said the sectoral projections are generally in line with the country’s development agenda.
Taken from the Reserve Bank of Malawi’s (RBM) Financial and Economic Review number 2 of 2024, Suleman reminded delegates that the agriculture sector is poised to grow by 4.3 percent in 2025 from 0.7 percent this year, construction is projected to grow by 7.6 percent from 5.3 percent while mining and quarrying will increase by 6.8 percent from 4.2 percent.
Manufacturing is expected to increase by 5.6 percent from 2.1, Wholesale and retail will jump by 4 percent from 1 percent while transport and storage services will rise to 6.3 percent from 3.2 percent among other sectors.
She however indicated that Malawi needs to put her house in order to make such projections a reality.
“There is need for well-structured markets, adequate infrastructure, favorable macroeconomic conditions, the right technical competencies favorable regulatory policy, sector profitability, available financing options, availability of hedging and de-risking instruments,” Suleman said.
One of the participants emphasised the need for projects with significant valued to be entrusted to the private sector or high net worth individuals to avoid bureaucracies in the government.
Ecama President Bertha Chikadza said development comes with financing.
“There are several areas that we’ve talked about, the financial sector not financing the private sector properly. We’re saying banks do not fund maybe concepts that can bring about change or development in the economy,” Chikadza said.
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