Indigenous Business Association of Malawi (IBAM) says the delay by the government to operationalize a new procurement law is significantly affecting growth of small and medium scale enterprises in the country.
The Public Procurement and Disposal of Assets Bill which was passed in Parliament in June 2017, forces government entities to give preference to indigenous Malawian businesses in their procurement processes.
IBAM President Mike Mlombwa described the implementation of the procurement law as very crucial for the survival of small and medium scale businesses in the country.
He added: “As of now, the procurement amendment act is not active which has cost us a lot in terms of competing with foreign businesses plying their trade in the country.”
Mlombwa said enactment of Act can also help the business sector to fully benefit from the proposed 2018-19 national budget.
“Private sector boost government of the day no matter what and I know there is not much concerning the private sector but as long as we are put on board we are home and dry,” the business tycoon said.
He disclosed that the association will approach the government to inquire on when it will enact the much fought for Act.
However, Mlombwa commended the government for coming up with a 2018-2019 proposed budget that is youth centered saying youths in the country will now have access to loans with little interest.