BLANTYRE-(MaraviPost)—An umbrella body for economists, Economic Association of Malawi (Ecama), has asked the Tonse Alliance administration to create a viable environment for economic growth.
Ecama President, Lauryn Nyasulu, has told the country’s local media MIJ FM that the growing closure of business operations and retrenchment will impact negatively on the country’s social economic growth.
The advice has come at a time when some companies are either closing or laying off their employees.
According to Nyasulu, businesses would continue to underperform unless the country has mechanisms that would keep them afloat.
For instance, Kanengo Tobacco Processors Limited closed leaving over 150 jobless while Manica (Malawi) Limited and Bakhresa Malawi Limited have announced plans to scale down and lay off some employees.
Malawi’s economy grew by 4.4 percent in 2019, a marked increase from 3.5 percent in 2018 supported by a rebound in agriculture production, as maize and key crops apart from tobacco increased.
Real gross domestic product (GDP) growth for 2020 was projected in September 2019 at 4.8% but the Malawi Economic Monitor (MEM) projects growth at 2.0 percent in 2020.