Malawi's largest corporations are urging the government to create a stable and predictable policy environment to encourage businesses to invest, produce, and expand. This call was made at a high-level business breakfast meeting in Blantyre, convened by prominent companies including Nico Holdings plc, Old Mutual Malawi Limited, and Press Corporation plc. The event brought together government and business leaders to discuss investment, industrialisation, and ways to address structural constraints to economic growth.
Press Corporation plc group chief executive officer Ronald Mangani emphasized the importance of policy stability, particularly in taxation and labour matters, to maintain investor confidence. He expressed concern over delays in resolving labour disputes, noting that some awards do not make economic sense and could discourage investment. Mangani also stressed that the tax system should incentivize production, rather than stifle it, to broaden the tax base.
Old Mutual Malawi chief executive officer Tavona Biza highlighted the need for policy consistency across government ministries, as investors require clarity when assessing projects. He noted that policy clashes between ministries can create uncertainty, making it difficult for investors to make informed decisions. Biza's sentiments were echoed by Nico Holdings plc group managing director Vizenge Kumwenda, who emphasized that policy stability must be matched by reliable infrastructure, particularly power and transport.
The concerns raised by the corporates are against the backdrop of declining and volatile private sector investment in Malawi. According to the Malawi Confederation of Chambers of Commerce and Industry, this trend is undermining productive expansion, job creation, and economic growth. The World Bank's June 2026 Country Private Sector Diagnostic reported that gross investment fell to 11.1 percent of gross domestic product (GDP) in 2024 from more than 20 percent between 2017 and 2019.
Minister of Industrialisation, Business, Trade and Tourism Simon Itaye assured that the government is committed to creating a conducive investment environment while ensuring that investment delivers wider economic value through jobs, businesses, infrastructure, and industries. He emphasized that if done correctly, investments such as mining can have a multiplier effect on the economy, producing not just minerals but also businesses, jobs, skills, infrastructure, and industries.
Minister of Mining Thoko Tembo noted that unlocking Malawi's mineral potential will require coordinated action by all stakeholders. This includes ensuring that policies are stable and predictable, and that infrastructure is in place to support investment. The government's commitment to creating a favourable investment climate is crucial to attracting financing for well-prepared and bankable projects.
The business leaders' concerns and the government's response highlight the need for a collaborative approach to addressing the challenges facing Malawi's investment climate. By working together, the government and private sector can create an environment that encourages investment, drives economic growth, and creates jobs. The outcome of this collaboration will be critical in determining the future of Malawi's economy.
Key points
- Malawi's corporates are calling for stable and predictable policies to boost investment.
- The country's private sector investment has declined and become volatile, undermining economic growth.
- The government has assured its commitment to creating a conducive investment environment.
