Saturday, 02 March 2024
OVERVIEW OF THE SME SECTOR IN MALAWI
Small and medium-sized enterprises (SMEs) play an important role in the many developing economies and Malawi is no exception. Empirical evidence shows that the SMEs contribute substantially to income, output and employment. The Malawi Gemini MSE Survey of 2000 disclosed that the SMEs employ about 1.7 million people (including owners, paid and unpaid employees), amounting to 38 percent of total working age population of the country. Women comprised 42per cent of this employment and contributed about 15.6% to the country’s Gross Domestic Product (GDP). The Malawi MSME Survey 2019 disclosed that there were 1,600, 739 MSMEs in the country. The MSMEs contribute about 47 per cent to the country’s GDP (arise by about 31.4% in 19 years).
This demonstrates that SMEs can effectively contribute to the strategic vision of Government of turning Malawi from a predominantly importing and consuming country to a predominantly manufacturing and exporting country since production and export of goods and services is the characteristic of the private sector which is dominated by SMEs.
 
KEY ROLES AND SERVICES PROVIDED BY THE SMEs DIVISION
The following are some of the key roles and services provided by the SMEs Division to fulfil its mandate:
Design and review of MSME policy to ensure its relevance is sustained and substantial resources are allocated to priority interventions;
Formulation and implementation of an MSME strategy that is pro-private sector export led growth;
Facilitation of Business incubation services that will see SMEs nurtured into established and successful enterprises that create jobs and wealth;
Facilitation of provision of extension services to enhance the productivity of the SMEs;
Conduct tracer studies that will inform the relevance and choice of policy direction and interventions in economic empowerment of the locals;
Encourage the use of local resources and technologies to bring about the product development that Malawi public needs and wants through entrepreneurship, innovation and creativity recognition;
Facilitation of provision of appropriate infrastructure or factory shells to enable technology enhancement and employment of the technology in improved product design, labelling and standards
MANDATE OF THE SMEs DIVISION
The SME Division is mandated to help in creating an enabling environment through which SMEs cannot only survive but thrive as well. Specifically, the functions of the Division can be outlined as below.
Creating and strengthening an enabling environment for SME development;
Facilitation of capacity building of SMEs;
Facilitating access to finance by SMEs;
Facilitating access to modern and appropriate technology;
Facilitating the provision of business advisory services;
Facilitating access to information;
Facilitating access to other essential business development services.

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2024-03-02 02:26

Contact us

Ministry of Trade and Industry,

P/O Box 30366,

Capital City,

Lilongwe 3,

Malawi.

Tel:+2651770244

Fax:+2651770680

Email: trademin@trade.gov.mw