By Chimwemwe Mangazi

Copyright times

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has called on the government to work towards stabilising the economy and creating investment-friendly policies.

The chamber has since said the country’s private sector is operating below capacity due to prevailing microeconomic challenges.

In an interview on Monday, MCCCI Chief Executive Officer said the business community was encouraged by the peaceful election period and smooth transDaisy Kambalameition, which she said sets a tone for economic recovery.

However, Kambalame identified ease of doing business as the first critical area requiring attention of the new administration, citing instances where well-intentioned policies have inadvertently hindered operations due to insufficient dialogue between government and the private sector.

“A couple of companies had been reporting inefficiencies in their system that they had to actually reduce. Most of them were operating at about 70 percent and some even as low as 60 percent of efficiency.

“If you start talking about limiting access to forex, even for those that are exporting, you know that those same companies cannot continue to import materials that they need for their production,” Kambalame said.

The MCCCI chief warned that this reduced operational capacity signals a shrinking economy with far-reaching implications.

In his first speech after his election as president on Friday, President-elect Peter Mutharika said he would prioritise issues that need immediate solutions including addressing food, fuel and forex shortages.

Meanwhile, in its Economic and Business review, published recently, the chamber noted that the business environment in Malawi during the first half of 2025 remained challenging but showed signs of cautious recovery.

It adds that government borrowing from the domestic market surged, crowding out private sector investment, while a widening trade deficit and declining foreign reserves added further strain.