Central bank governor Wilson Banda has outlined that though there is a decline in coronavirus cases in the country, the world wide impact is still crashing the Malawi tourism industry and recovery in the sector will be at a slow pace.
According to Banda, the slow recovery of the tourism industry is slowing the country’s path to economic recovery as the sector contributes to national production despite its minimal GDP value. Upon the outbreak of the pandemic in the country, the Malawi Tourism Council (MTC) outlined that 35,000 jobs would be affected in the sector.
Last month, the Malawi Innovation Challenge Fund (Micf) announced an initiative aimed at rescuing the country’s tourism sector by providing financial support to players affected by Covid-19. Micf fund manager Navin Kumar said that after considering the negative impact the pandemic has had on businesses in the sector, the fund will contribute 30% of the total project value, Micf contribution will be between $200 000 (K148 million) and $300 000 (K222 million), with the grantee contributing at least 30 percent of the total project value. Firms, including hotel and accommodation providers, tour operators and eco-tourism providers wishing to apply for the window must, among others, be a private for-profit company with the idea implemented in Malawi and with a minimum turnover of $200 000 (K148 million). The projects will be expected to be completed within a maximum 30 months