President Lazarus Chakwera has spoken against what he calls stupid monopoly of some private companies who flood government contracts by submitting multiple applications for a single contract. 

Addressing the nation on Sunday night, Chakwera said his administration is carrying out a comprehensive review of procurement processes in government.

“The net effect of this pernicious practice is that the contracts across MDAs and the pay outs for them are concentrated in the hands of a few, who grow richer under every administration while everyone else gets poorer.

“The time has come to break this stupid monopoly and replace it with government policies, legislation, and practice that promote inclusive economic growth,” said Chakwera.

The Malawi leader has also directed all Ministries, Department and agencies (MDAs) to consider prioritising locally made goods through the Small and Medium Enterprises.

“To support local industries, I am directing all MDAs to give preference to the procurement of locally made goods. I have personally seen the great work done by local artisans in places like Ndirande in Blantyre, Mchesi in Lilongwe, Katoto in Mzuzu.

“And other places, producing everything from office furniture to building fixtures, and yet the young people who do such great work are never given a chance. I am here to change all that,” said Chakwera.

According to Chakwera, it is unfortunate that the country has been importing goods like uniforms for security officers yet the country has the capacity to produce locally.

“As far as I am concerned, there is no justification for importing things like uniforms and shoes for army and police officers.

“Under my Administration, I want MDAs to prioritize procuring such goods and services locally where they are available,” he said.

The President has since urged the office of the Registrar of Companies to assist the prospective suppliers of goods and services from the informal sector with speedy registration of their enterprises, and also the Malawi Revenue Authority (MRA) to expedite their inclusion in the tax database.