Finance Minister Simplex Chithyola Banda has said the Malawi Development Corporation (MDC) “is back”.
He said it is a product of the government’s adoption of policy interventions skewed towards a State-led industrialisation approach.
Chithyola Banda made the announcement when he presented the 2025-25 national budget statement to Parliament on Friday.
Apart from revamping MDC— which will be fronted for strategic industrial investments, with some of the processes reported to have started—Chithyola Banda announced a K95 billion irrigation infrastructure investment that would see over 50,000 hectares of irrigable land producing 337,000 metric tonnes of crops.
A K53 billion injection into Agricultural Development and Marketing Corporation (Admarc)’s rejuvenation process was also a notable industrialisation move by the State, which has increased by 160 percent the budget for the Industry and Trade Ministry.
Tourism’s budget also got a 192 percent increase.
“In order to stimulate economic growth through job creation, reduced dependence on imports, increased export opportunities and other resultant multiplier effects to the economy, the government has deliberately allocated substantial resources to a number of productive sectors, including agriculture, irrigation, tourism, mining and trade,” he said.
According to Chithyola Banda, MDC personnel are already in discussions with potential strategic partners to open factories, offer services in the transport sector and invest in the agriculture sector for production.
The National Planning Commission (NPC), a government entity mandated to draw and oversee implementation of the country’s long-term development plans, recognises the manufacturing sector as a critical factor for growth.
NPC Director General Thomas Munthali said, in his immediate reaction to the budget that while the strategies, specifically for promoting manufacturing, did not come out clearly, this deserved applause.
“More importantly, [proposed] budget allocations to the mining and tourism sectors may not be that much nominally, increasing allocation to them by 160 percent and 192 percent, respectively, sends a good signal that government is committed to supporting those sectors as per its strategic orientation– especially given the thin resource envelope,” Munthali said.
Malawi Confederation of Chambers of Commerce and Industry Chief Executive Officer Daisy Kambalame acknowledged improved investment in the production sector and concessions in irrigation.
“For us, it’s quite interesting to look at the provisions that they’ve made and how that can stimulate production. They’ve made quite a number of concessions for irrigation and the agriculture sector. They also made provisions for tourism and mining,” Kambalame observed.
She also welcomed the reduction of corporate tax for foreign incorporated companies from 35 percent to 30 percent but called for mandatory listing on the Malawi Stock Exchange to increase local ownership.
Institute for Chartered Accountants Chief Executive Officer Noel Zigowa had reservations on the tax measures, which they feel have some traces of contradictions, citing the VAT removal on second-hand clothes which, he said, might affect the local textiles industry.
In the transport sector, the minister announced that a new deal had been reached with Ethiopia Airlines to renew the joint venture while a new cargo airline would be established by Malawi Air Cargo.
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