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
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