2019 Annual Economic Report compiled by the Ministry of Finance, Economic Planning and Development has shown that parastatals underperformed in the 2018/19 financial year that ended on June 30.

“Performance of most statutory bodies still remained subdued largely due to unfavourable market and operating environments for various products and services,” reads the report in part.

Almost half a decade ago, government instituted reforms in over 40 State-owned enterprises, but the parastatals are failing to devise new revenue streams and improve efficiency because the reforms are yet to translate into action. This comes against the backdrop of five parastatals posting losses at the end of December 2017, according to the 2018 Malawi Annual Economic Report, with the rest of them posting reduced profits.