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Benefits: Star membership category for an annual subscription fee of K90,000 only

  • Trade facilitation services through business linkages to potential markets and partners
  • Access to group SMME targeted business advisory services: business planning, financial planning, review of contracts, marketing and business management
  • Access to trade information through MCCCI’s documentation centers.
  • Eligible for MCCCI’s referral discount program on events.
  • Visibility in MCCCI E-Newsletters
  • Referral business, both internal and external
  • Access to MCCCI periodic briefs on global, regional and national economic and business trends
  • 1 vote during MCCCI elections

NB: Subject to qualification as a micro & small business.

Why join MCCCI membership?

We defend and promote the interests of our Members to local, regional and international authorities by voicing their views and concerns. The overall aim being to foster economic liberalism and market-oriented policies. Join Today! Call @01 871 147

Interest rate capping will not offer sustainable solutions-MCCCI

Malawi Chamber of Commerce and Industry (MCCCI) says there are policy alternatives that can protect borrowers from excessive interest rates instead of introducing interest rate caps which could not offer sustainable solutions.

While acknowledging that high cost of finance remains an obstacle to doing business in Malawi, MCCCI Chief Executive, Chancellor Kaferapanjira said capping interest rate is not the best mechanism to address the challenge.

“We think that interest rates should indeed go down, but putting it in a law means that we are putting up a permanent structure and the law will be very difficult to change.

“We agree that there is high rate of borrowing; but the challenge is on how RBM is going to intervene in making sure that the commercial banks are not just adding unnecessary risk premiums,” said Kaferapanjira.

He said for example RBM Governor can come up with a reference rate to achieve a purpose within specific time frame and can revoke it when the purpose has been achieved.

Member of Parliament for Dedza North West Alekeni Menyani moved a motion in Parliament in 2016 proposing a law to introduce interest rate capping, after noting exorbitant interest rates on loans obtained from banks and other lending institutions which resulted in property loss due to non-payment.

Earlier, Bankers Association of Malawi President Paul Guta concurred with MCCCI that the proposed bill could be solving symptoms instead of the root cause of high interest rates in Malawi. 

“Let us find solutions of what should be done to the economy to have affordable interest rates. The high rates are as a result of so many factors that include; operational factors such as electricity and connectivity as well as inflation,” He said.

 

Malawi among top 10 African exporters of apparel to the United States

Malawi has been named a distant 10th of the top 15 African Exporters of Apparel to the United States under the African Growth & Opportunity Act (AGOA) Trade preference programme.

Malawi is trailing 9 countries, with Kenya topping the list with total exports of 252,674 in 2017 and 293,976 Dollars in 2018 while Malawi exported only 321 in 2017 and 553 between January to September in 2018.

This follows a US Committee for the Implementation of Textile Agreements announcement of limits on duty- and quota-free imports of apparel articles assembled from regional and third-country fabric under AGOA for the fiscal year 2019.

Said US Government: “Apparel articles entered in excess of these quantities will be subject to applicable customs tariffs,

“For   apparel articles wholly assembled in one or more beneficiary Sub-Saharan African countries from fabric wholly formed in one or more beneficiary countries from yarn originating in the US or one or more beneficiary countries, the Financial Year (FY) 2019 limit is 2,048,357,135 square meter equivalents (SME) (up 1.3% from FY 2018),

 “Of this amount, 1,024,178,567 SME (up 1.3%) is  available for apparel articles  imported  under the AGOA third-country fabric provision, which  provides preferential treatment for apparel articles assembled in one or more lesser   developed  beneficiary  countries regardless of the country of origin of the fabric used,”

 The AGOA program is set to expire at the end of September 2025.

 Read more on: https://www.cbp.gov/trade/quota/bulletins/qb-18-136-2019-agoa-limits

 

Seminar on U.S market entry requirements

The Southern Africa Trade and Investment Hub has organined a seminar on U.S Market entry requirements.

London to host AFSIC

 

London will host AFSIC 2019, the leading Africa Investor event globally, which is now in its 7th year, taking place from 8th to 10th May 2019. 

 

AFSIC is a highly focused investment event and is believed to be the largest Africa investment event taking place annually in Europe and one of the most important Africa investor events globally.

 

AFSIC is quoted on its website that business leaders from around 40 African countries are expected to attend in 2019, and with over 250+ speakers and participants focused sessions, and an expected 1000+delegates.

 

AFSIC provides an unparalleled opportunity to develop and nurture a robust, high quality network of business contacts across the continent, providing multiple networking opportunities for African business leaders, investors and dealmakers to meet.

 

 

A sophisticated event and Meeting App allows delegates to prepare up to a month ahead for critical investment meetings allowing real deals to be concluded during the course of AFSIC.

 

According to FSIC, Africa is the second fastest growing region in the world.

“Multiple indicators suggest that Africa has entered a cycle of strong economic growth that will match that experienced by Asia over the past decades. Global investors are positioning themselves to understand the increasingly evident opportunities across Africa in greater depth.

More information on the event, and how to register, is available on the website
www.afsic.net.

 

Malawi 2018/19 Global Competitiveness Report Brief

 

Malawi ranks 129th on the Global Competitiveness Index (GCI)

Malawi ranked 129 out of 140 countries according to the Global Competitiveness report released by the World Economic Forum released on 17th October 2018. This means that Malawi is the 11th least competitive country in the world.

Table 1: Top and Bottom Ten Global GCI ranking

Top Ten

Bottom Ten

Global ranking

Name of Country

Global ranking

Name of Country

1

United States of America

140

Chad

2

Singapore

139

Yemen

3

Germany

138

Haiti

4

Switzerland

137

Angola

5

Japan

136

Burundi

6

Netherlands

135

Congo Democratic Rep.

7

Hong Kong SAR

134

Sierra Leone

8

United Kingdom

133

Mozambique

9

Sweden

134

Liberia

10

Denmark

135

Mauritius

Source: The 2018-19 Global Competitiveness Report

Malawi’s Overall Performance

The country’s economy ranked 129 from 132 recorded in the previous 2017/18 Global competitiveness with health scoring the lowest at (131/140) followed by Infrastructure (129/140), ICT adoption and Macro-economic stability at (128/140).

Malawi has experienced a 1.8 growth in competitiveness which is shown in the figure below which depicts the trend of the economy’s competitiveness over a period of six years. The country’s competitiveness has fluctuated around the ten bottom countries included in the GCI owing to Malawi’s struggle in improving major economic indicators that contribute to the competitiveness of a country. As shown in the figure, Malawi’s score adopted a declining trend from 2012 to 2016 where it remained stagnant until 2018 where it has grown from 3.1 to 4.9 and this is a positive indicator on the performance of the economy.

Table 2: Malawi’s Yearly Rank on the GCI

Year

2012/13

2013/14

2014/15

2015/16

2016/17      

2017/18

2018/19

Rank

129/144

136/148

132/144

135/140

134/138

132/137

129/140

Score

3.4

3.3

3.2

3.2

3.1

3.1

4.9

Source: 2018-19 Global Competitive Report

Malawi’s Performance by Pillar

The report covers 12 essential pillars which are Institutions, Infrastructure, ICT adoption, Macroeconomic stability, Product market, Labour market, Financial system, Market size, Health, Skills, Business dynamism and Innovation capability. For Malawi, the table below shows how each of the pillars have performed over the past 4 years.

Table 3: Performance of Pillars

Competitiveness Pillars

            

2018-19 (Out of 140 Countries)

2017-18 (Out of 137 Countries)

2016-17 (Outof 138 Countries)

2015-16 (out of 140 countries)

2014-15 (out of 144 countries)

Overall Ranking

129

132

134

135

132

Institutions

103

96

94

92

77

Infrastructure

129

131

135

133

135

ICT Adopted

128

125

122

121

108

Macroeconomic Environment

128

136

137

140

144

Health

131

115

120

121

123

Skills

127

128

131

133

132

Product market

116

121

119

117

108

Labour market

76

45

38

29

28

Financial system

123

102

115

100

79

Market size

127

122

125

127

123

Business dynamics

127

125

122

121

108

Innovation

112

124

120

121

115

Source: The 2014-15 to 2018-19 Global Competitiveness Reports

Ranking at 131, the country’s health sector plays a huge role in contributing to the lack of competitiveness of the economy. Malawi lacks health facilities furnished with basic equipment for treatment of patients. Most health facilities also lack availability of medicine and are short staffed which presents difficult if treating diseases.

For a country to perform well in production, it requires a readily available labor force that is efficient and produces quality products. Although the report ranks the county’s labor force as the best out of the twelve pillars, health plays a major role in the quality of labor force because productivity is affected by the quality of the labor force.

Malawi has been going under the process of transforming its economy into an Industrial economy through value adding to agricultural products. This transformation will require a lot of foreign and domestic investments into factories which is an area that is labor intensive. The fact that Malawi’s health sector scored the lowest is a bad indicator for most investors into the manufacturing industry because it signals a labor force that is of bad quality which is a threat to productivity.

Regional Performance; Sub-Saharan Africa

In this region, Mauritius is the top performing sub-Saharan country at number 49 followed by South Africa at number 67 followed by Seychelles at number 74. At the bottom, the least competitive country is Chad at number 40 followed by Angola at number 137 then Burundi at number 136.

Mauritius has maintained the number 1 position since the 2017-18 report even though its global ranking has fallen from 45 to 49. This indicates that on a regional level, the economy is doing well in improving their business environment. Their product market takes the top rank at 19 which is attributed with increasing competitiveness in services, low prevalence of non-tariff barriers, low trade tariffs and service trade openness. Financial system ranked 25 owing to availability of venture capital availability, low domestic credit to private sector, availability of SME financing, low occurrence of non-performing loans and good bank’s regulatory capital ratio which are crucial factors that enable the growth of private sector.

Although Malawi is in the bottom ten countries, it is important to note its significant 3 step move upwards from the 2017-18 report. For the Malawian economy to be more competitive, there is need to take notes from Mauritius and improve our product market by minimizing non-tariff barriers, reforming trade tariffs and removing distortive effects of taxes and subsidies. The financial system can also be improved as it is currently faced with very high Domestic credit to private sector, lack of venture capital availability and SME financing and persistent occurrence of Non-performing loans.

Table: 4 Top and Bottom sub-Saharan GCI Rank

Top Ten

Bottom Ten

Global ranking

Name of Country

Global ranking

Name of Country

49

Mauritius

140

Chad

67

South Africa

137

Angola

74

Seychelles

136

Burundi

90

Botswana

135

Congo Democratic Rep

93

Kenya

134

Sierra Leone

100

Namibia

133

Mozambique

106

Ghana

132

Liberia

108

Rwanda

131

Mauritania

111

Cape Verde

130

Lesotho

113

Senegal

129

Malawi

Source: 2018-19 Global Competitive Report

With the top performing countries in the region, the following countries have made significant improvements in their ranking; Seychelles moved from 107 to 74 and Ghana from 111 to 106.

In the bottom ten, Chad ranked as the least competitive country in the region at 140 followed by Angola at 137 and Burundi at 136. Mozambique has made a significant move from ranking as the least competitive country in 2017-18 to ranking number 133 and this can be attributed to improved market size and business dynamics. Liberia has also shifted from ranking as the third least competitive country at to number 132 which is highly attributed to improved business dynamics and labor market.

The aim of the GCI is to identify challenges to be addressed and strengths economies can build on through economic growth strategies. The report also works as a source of information for individuals and companies that are interested in expanding business ventures globally.

The Malawi Confederation of Chambers of Commerce and Industry will use results of the Global Competitiveness Report alongside those from Malawi Business Climate Survey and World Bank Doing Business to lobby for improved business climate in Malawi. Businesses are encouraged to take part in these surveys to inform policy making.

The full report can be obtained at https://www.weforum.org/reports/the-global-competitiveness-report-2018-2019

Season's Greetings from MCCCI and warmest wishes for the New Year

 

Buy Malawi Strategy organizes a buy local campaign

The Buy Malawi Strategy (BMS) in collaboration with the Ministry of Industry, Trade and Tourism has organized a Buy Local Campaign, across the three regions, targeting companies producing local goods and services to showcase their products and services.

The campaigns will be held in Blantyre at Chichiri Shopping Mall, Lilongwe at Game Complex and Mzuzu at Mzuzu Shoprite Mall from 21 to 22 December starting from 9:00am to 5pm every day.

Buy Malawi members will participate free of charge while non-members SMEs are required to pay K10, 000 and Non-members others K35, 000 per day.

The campaign is part of a series of activities that the BMS secretariat has been conducting to raise awareness of the local products and services.

All interested companies should register before 17th December 2018 by sending an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call 09995228510 or 0993707729

Potential business prospects from Zalala Festival

The recently held Zalala Beach Festival and Trade Fair, has identified potential business partners and buyers for some Malawian products that were showcased through the Malawi Confederation of Chambers of Commerce and Industry (MCCCI)

Mixing business with pleasure, the 11th Zalala Beach Festival, was held in the Mozambican City of Quelimane off the shores of the Indian Ocean, attracting thousands of revelers and business executives from Mozambique and its neighboring countries.

MCCCI showcased products from: Candlex Limited, Nampak Malawi Limited, and Lilongwe Dairy (2001) Limited while exposing Small and Medium Enterprises SMEs to the international showcase.

Speaking on the sidelines, Teras Healthcare, Commercial Director, Ronald Amos hailed MCCCI for exposing SMEs to international opportunities through trade events.

“MCCCI provided the much needed business linkage for Teras during the festival. We have clinched a deal with an agent who will be selling our product. We just need to work on the branding to reflect the ingredients in the Portuguese language,” said Amos.

MCCCI, Head of Business Linkages and Events, Linda Pete expressed gratitude to the companies that provided product samples and encouraged businesses to embrace such opportunities when they come by.

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