On August 1, Institute of Chartered Accountants in Malawi (Icam) wrote a letter to the Malawi Law Society (MLS), stating that the cost of renovations from the nationwide demonstrations will negatively affect the country’s already burdened economy. The letter is a follow up of a request by MLS, asking the Icam to examine the state of business affairs.
The letter, signed by Icam president Francis Chinjoka Gondwe, notes that businesses have not been generating resources that may sustain their survival, hence the body of accountants has also foreseen some potential staff lay-offs, thereby reducing the financial survival of the retrenched workforce as well as the disposable income.
“Countries that have been riddled with violence are at a risk to conduct business in. At the end of the day, the peace mantra of the country which was its highly competitive edge has gotten lost and may not be easy to recover,” Icam said.
True enough, businesses have been performing slowly due to demonstrations, as the Malawi International Trade Fair (MITF) has also been slow this year. Following the postponed MITF after five countries pulled out citing the tension amidst the political environment in the country, the fair was postponed to happen from 6th to the 15th August 2019. However the Fair opened in the absence of President Peter Mutharika, a development that has never happened in his regime. Spokesperson for the Malawi Chambers of Commerce and Industry (MCCI) Millie Kasunda, said only three international exhibitors from Bangladesh, Mozambique and Zimbabwe would be attending the fair because most of the foreign exhibitors who had confirmed attendance pulled out due to the ongoing political crisis.