The Ministry of Industry and Trade has advised local investors to consider joint ventures if their businesses are to succeed in the competitive market.
According to investopedia website, a joint venture is a business agreement between two different companies to work together to achieve specific goals.
The joint venture advice comes at a time the ministry in collaboration with the Malawi Investment and Trade Centre (Mitc) are planning a review of investment, production and export incentives to attract both domestic and foreign investors into the competitive productive sectors.
The ministry has bemoaned low contribution of manufacturers to Malawi’s gross domestic product (GDP) due to the limited investments in the sector over the past decade.
The ministry’s spokesperson, Wiskes Nkombezi, told Business News on Wednesday that a lot of Malawian investors do not like the idea of joint ventures, which is costing the country a lot.
“It is high time Malawian investors started switching their mindset to accommodating joint ventures if we are to create our own wealth and create jobs thereby fighting unemployment.
“Through the review, we would like to make Malawi an investment destination by choice and we want to look at the incentives which can keep us steady in the competitive world,” he said.
Prior to the 2015 Malawi Investment Forum (MIF) at the end of June, Grant Chikweza, managing director for Gimm Holdings Private Limited, a group of companies that specialises in water drilling, investments and logistics and car rental, also advised local entrepreneurs to take advantage of the investment forum to consider establishing partnerships and vehicles to partner foreign investors.
“As Malawians, it is an open secret that we are not good in creating partnerships but learning from what is happening in other countries, consortiums and strong partnerships are what are transforming most nations worldwide,” he said. n