Investors have come out to say they are afraid to invest in Malawi due to a shortage of foreign currency in the country.
This was disclosed by South Africa’s No 2 retailer, Pick n Pay which is expected to invest in Malawi in the next 12 months.
Responding to a questionnaire Pick n Pay Head of Group Enterprises Dallas Langman said the only challenge the company might face if they invest in Malawi is the lack of foreign exchange.
“Our immediate challenge would be to grow and enable the local supplier, manufacturing and agricultural sector in order to sell as much local product as possible. Our single biggest financial concern stems from the lack of foreign exchange to settle goods brought in from neighbouring countries”. Said Langman
Since 2009, Malawi has been experiencing a shortage of foreign exchange, which has damaged its ability to pay for imports, and fuel shortages that hinder transportation and productivity.
Due to this investment fell 23% in 2009, and continued to decline up to date . The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services.
According to Langman Pick n Pay have signed with the Malawi government to open one store in the Capital Lilongwe. He however said they would like to open far more than one shop.
“We would like to open far more than this and we are currently investigating potential sites” added Langman
According to Langman the first store will provide jobs to over 100 Malawians. “It is far deeper than just a store as our intention would be to support as assist local farmers and suppliers in providing us with as many lines as possible and to assist them in achieving this”. Cited Langman