Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says the proposed 2018/19 national budget lacks clear energy solutions and opportunities that would boost industrial productivity.
MCCCI has since labeled the budget as a social budget.
“It is very surprising to note that the 2018/2019 budget has totally ignored the private sector, a sector which has the highest potential to catapult the country to economic freedom,” says MCCCI in a statement.
Some of the issues raised include a lack of payment of the private sector arrears which date back to 2014.
In the current budget, finance minister Goodall Gondwe hinted that 80 million dollars which the government received from the World Bank will go towards settling arrears.
The leadership of the MCCCI, however, is pointing out that Capital hill still owes the private sector a lot of money in unpaid contracts, rentals and pharmaceuticals services rendered.
This, it adds, coupled with the power inconsistencies is threatening the capacity of the Private sector.
The MCCCI goes on to warn that, “Private sector will continue shrinking if electricity woes continue and it will face huge losses if 2021 is the projected period that Malawi should expect to have stable electricity”.
And speaking during the opening of the 30th International Trade Fair in Blantyre president of the MCCCI Prince Kapondamgaga reiterated these concerns before the president.
The business captains have meanwhile recommended that the government expedite payment of private sector arrears as businesses are still facing challenges.
Other areas which they have expressed discontent with include the youth internship program arguing it does not solve unemployment.
The MCCCI further adds that “The MK10 billion allocation to youths for internship programs and tree planting programs are temporary fixtures that will not solve the predicament faced by the youth presently”
They are also worried with the new tax measures and the increase of chiefs’ honoraria.
The chamber expresses fear that the budget in its current form will likely have a strain on the tax collecting body and domestic borrowing increase would likely influence an upsurge in interest rates and crowd out private sector capital.