Company closures worry Malawi economists

Officials from Economists Association of Malawi (Ecama), an umbrella body for economists say the growing closure of business operations and retrenchment is detrimental to the country’s social economic growth.

Lauryn Nyasulu ECAMA president

They have said this because of the growing trend of closure of some companies and retrenchment of employees.

Lauryn Nyasulu , president of the Economic Association of Malawi has asked government to create a viable environment for economic growth even in moments of pandemic like these.

According to Nyasulu, businesses would continue to underperform unless the country has mechanisms that would keep them afloat.

For instance, Kanengo Tobacco Processors Limited closed leaving over 150 jobless while Manica (Malawi) Limited and Bakhresa Malawi Limited have announced plans to scale down and lay off some employees while
Manica said it will be undertaking an organisational restructuring exercise to retrench some employees as operational and staff costs are high due to large number of employees compared to the revenues generated.

In addition, the company said it will undertake the exercise to bring its revenues in line with the group’s requirement and evaluate each existing job and retain only those which are the main key results areas.

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Public Opinion Organisations
Public Opinion Organisations
3 days ago

It is NOT Covid it is the way Govt and People Handle there Finance By Cutting off the Taxes or Reducing the Taxes it does Not mean that the Cash FlFlow will be Increased for Companies Companies Collect VAT from Consumers and Pay to MRA it is NO Additional Burden on Companies PAYE also is collected and Paid to MRA and Companies also Collect Employees Pension but They do NOT pay to Respective Authorities the same and they Show Losses in the Books and NOT pay any Corporate Taxes We should NOT blame Govt for the Situation which the World… Read more »

Anon
Anon
3 days ago

How many businesses have you run that you’re saying it’s not the taxes?

007
007
3 days ago

The best solution is reduce taxes to increase cash flow

As taxes will reduce some item will get cheaper for example oil

The flow of cash will be faster like before the vat

Chisale
Chisale
3 days ago

Unfortunately, it is happening in every country. Tough times indeed. Most of these companies, they were already in trouble before the pandemic.

Ndadabwa
Ndadabwa
3 days ago
Reply to  Chisale

I agree but government needs to take an active step to cushion some of these. How does increasing taxes on basics help.

Za mkutu
Za mkutu
3 days ago
Reply to  Chisale

Which countries? Did you not see just past week Banks NBM profit 24bn Mybucks 7bn. (31bn) profit from the bank charges and loan interests they charge these companies.

Amazon and Tesla trippled their wealth same covid period.

Lets not use covid as an excuse….. govt have spent 159bn on covid alone, and yet they cannot account for it. Onjezani kenani spent 200m with detailed report.

Anon
Anon
3 days ago
Reply to  Za mkutu

There is too much money in the west. Stop comparing to tesla and Amazon. Let’s compare to other realistic companies. Malawi doesn’t have an Amazon is tesla type of company where they are the most unique in the world and have no direct competition

wisdom
wisdom
3 days ago
Reply to  Za mkutu

I live in UK. A lot of companies have gone burst because of covid. You are being selective in the companies you are using as examples.

Mutumwa
Mutumwa
3 days ago
Reply to  Chisale

A Chisale, which other countries, tatitchulireni, mukungolota kapena chani? Search about business in Kenya, Angola, Zambia even Mozambique and see if you will find the nonsense you are backing! Kwacha dying everyday while other currencies in neighboring countries are appreciating. You are just an irresponsible hand clapper!

Ndani wandibera list yocabinet nayika pathebulopa
Ndani wandibera list yocabinet nayika pathebulopa
4 days ago

One million job losses

Anon
Anon
3 days ago

One million jabs

Doctor
4 days ago

Retrenchment, company downsizing or closures are happening all over the world due to covid. The solution is kuwapatsa ndalama zoyendetsela kuti zisawavute. But we cannot afford it. So what can we do or who do we blame for covid?

Fuka
Fuka
3 days ago
Reply to  Doctor

The solution is not just kuapatsa ndalama. Tax incentives, subsidies, devaluation of currency ( so that tobacco farmers get their true value) import duties are all items that can be used.

Sokol
Sokol
4 days ago

tonse alliance ikulephela.

ress
ress
4 days ago

Hundreds of small businesses are closing quietly every week. I closed mine few months ago and let go 12 employees. I feel for them and their families. Some of these laid-off people don’t even have an income after months of searching for jobs. There are no jobs out there. I sometimes try to support some of them with the little I get from my full time job. The economic climate is not worth the hustle. The running cost of business are very high compared to the revenue. Just to make businesses even more difficult to run, the government does not… Read more »

Anon
Anon
3 days ago
Reply to  ress

And sometimes 5 years with no interest or even factoring in devaluation or inflation

Za mkutu
Za mkutu
4 days ago

1 million jobs ndi imeneyi. 1 million job cuts.

Bauleni.
Bauleni.
4 days ago

Under the wise leadership of Tonse failures

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