The United Nations Development Programme (UNDP) has called for urgent action to revive Malawi's struggling manufacturing sector, citing policy inconsistencies and regulatory challenges as major obstacles to its growth.
Speaking at the Second Manufacturing Conference in Blantyre on Friday, UNDP Resident Representative for Malawi, Fenella Frost, expressed concern over the sector's decline, emphasizing that the time for speeches was over and that bold, decisive action was needed.
"Over the years, we have seen various strategies aimed at revitalizing the manufacturing sector. However, instead of growth, the industry is in a downward spiral due to shifting policies and regulatory barriers. The time for talk is over--this is the time for action," she said.
Frost reaffirmed UNDP's commitment to supporting policy reforms that will ensure a robust and dynamic manufacturing industry capable of driving economic transformation.
Echoing UNDP's concerns, Minister of Trade Sosten Gwengwe stressed the need for greater collaboration among manufacturing sector players to unlock the industry's full potential.
Gwengwe noted that a lack of coordination and investment in manufacturing has hindered the sector's contribution to Malawi's Gross Domestic Product (GDP), affecting economic stability.
"We urgently need collaboration in this sector. When manufacturing stagnates, the economy suffers. A weak manufacturing industry leads to economic decline, higher inflation, and supply chain disruptions, affecting ordinary citizens," he said.
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The minister assured stakeholders that the government is working on solutions, including the development of a new manufacturing policy aimed at strengthening industry inter-linkages and promoting sustainable growth.
Byson Mkomaanthu from the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) outlined major economic challenges affecting the sector, citing foreign exchange shortages, fuel supply issues, currency devaluation, and other macroeconomic pressures as key obstacles.
Historically, the manufacturing sector has been Malawi's third-largest contributor to GDP, accounting for 11%, following agriculture (22%) and wholesale and retail trade (12.6%). However, its contribution has declined from 20% in the 1990s to the current 11%.
With UNDP and government stakeholders pushing for urgent policy reforms, stronger collaboration, and investment in manufacturing, there is renewed hope that Malawi can reverse this downward trend and build a thriving industrial sector.
