Malawi Govt struggling to pay small companies


Numerous micro, small and medium enterprises (MSMEs) have complained that they have not received payments from Malawi Government’s Ministries, Departments and Agencies (MDAs) months after supplying goods and services.

Ministry of Trade and Industry has confirmed receiving a lot of complaints from the small companies.

A statement dated May 9 and signed by Limbikani Kachiwaya for Secretary of Trade says the practise is affecting MSMEs which do business with government.

[It is ] disrupting their cashflow and denying them the chance to reinvest in their businesses to grow and flourish,” reads part of the statement.

The Ministry has since advised MDAs to priorities payments to MSMEs as one way of promoting them and keeping in line with the spirit of President Lazarus Chakwera’s order of 2020 which seeks to encourage participation of small local companies in procurement.

The Ministry has also advised MSMEs which are yet to be paid after delivering goods or services to contact the Secretary for Trade and Industry.

Earlier this month, one small business owner running a stationery shop complained on social media that small businesses are struggling to get payments from government.

“We have succeeded in several businesses, but we have had issues of payment. The way they delay the payment no SME can survive the market and I am a practical example. Some invoices dating back to January 2022 have yet not been paid to date and we are almost closing down,” the business owner complained.

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