The Malawi parliament yesterday approved Bill No. 20 of 2024: Micro, Small, and Medium Enterprises, paving the way for a comprehensive legal framework to support the growth of micro, small, and medium enterprises (MSMEs) in the country.
The Micro, Small and Medium Enterprises Bill aims to create a conducive environment for MSMEs to thrive, fostering economic development and job creation.
Key provisions of the bill include the establishment of the Small and Medium Enterprises Development Corporation as the regulatory body for MSMEs, outlining its functions and powers. Registration framework for MSME stakeholders, including enterprises and associations.
Regulation of accreditation and training conducted by business development service providers and measures and incentives to promote and develop MSMEs.
Speaking to the press after the bill was passed, Minister of Trade and Industry Sosten Gwengwe said this landmark bill is expected to boost entrepreneurship and innovation, enhance access to finance and markets, Improve competitiveness and productivity, and create employment opportunities.
Gwengwe also noted that the bill is a serious enabler for Malawi’s economic growth.
He added that the absence of a law to guide and regulate the MSME sector has for long led to the neglect of the sector and this has therefore affected MSMEs and led to various challenges such as limited access to financing, markets and BDS among other things.
“This bill makes it easier for the SMEs to be known by this new cooperation SMEDICO. It’s the same SMEDI but this time around it’s gonna be a statutory corporation with more powers and functions to facilitate the works of SMEs in our country,” said Gwengwe.
According to Gwengwe, the Bill is aligned with Malawi 2063 as well as current regional and international best practices regarding MSMEs development.
