Businesses facing low profits due to Kwacha’s plunge

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Business people in Malawi have complained about low profits in the business sector due to the country’s economic situation.

The concern was brought forward by executive director of Agma Holdings Limited, Mark Katsonga Phiri. He said companies such as Agma are facing challenges of low profits due to the depreciation of the country’s currency.

Mark Katsonga

Katsonga: The exchange rate is down.

According to Katsonga, they are buying one dollar at K650 yet a few months ago the dollar was pegged at K440 and this is leading to low profits.

He added that the problem has contributed to the closure of some listed companies in the country since some of them lack financial support.

However, Katsonga offered some alternatives that the government can use to curb the situation at hand.

He put forward the removal of subsidies such as the malata and cement subsidy to solve some of the problems Katsonga who is also People’s Progressive Movement (PPM) president then asked Mutharika to consider the proposal since it is coming from one of the people who voted for him.

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