Monday, April 19, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

‘Poor infrastructure hampering growth’

by Steve Chilundu
04/04/2020
in Business News, Editors Pick
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

A development expert says Malawi’s private sector has remained dormant because of the underdeveloped public infrastructure that is failing to facilitate desired growth.

According to the researcher and development expert Paul Kwengwere, the underdeveloped public infrastructure is hugely attributed to the low development budget allocation coupled with poor absorption rate in project implementation.

RelatedHeadlines

Women’s football blueprint takes shape

Ministry defends ‘borrowing’ of Covid-19 funds

Sumbuleta gets behind bars

ROAD | The Nation Online
Development budget to support huge infrastructure projects is low in Malawi

Writing in his paper titled: Infrastructure Investment Uncertainty: Malawi’s Weakest Link in Achieving High Economic Growth, Kwengwere argues that public infrastructure increases the marginal productivity of private inputs hence raising the perceived rate of return for private sector.

Kwengwre says that low developmental budget allocations have made Malawi fail to maximise on its infrastructure needs to facilitate private sector growth as mostly the development budget is dominated by donor support.

He said: “It is not only foreign resources that reduce outturn. Sometimes even the local resources budgeted for are not released or realised. Public infrastructure increases the marginal productivity of private inputs hence raising the perceived rate of return for private sector.

“With poor capital investment planning, Malawi continues facing challenges in the strategic infrastructure development such as transport, communication and energy.”

For instance he cited insufficient power that goes below 50 percent demand capacity which makes it almost impossible for new factories to be productive, let alone to grow, thereby affecting economic growth.

In the paper, Kwengwere argues that government needs to put protective measures for the development expenditure so that once it is approved, the implementation should not at any point be deterred.

Further, he stated that the development expenditure is too important to be just left to foreign financing as such there is need for increased allocation of the local and more predictable resources.

Over the years, there have been persistent gaps between budget and expenditure for instance in 2018/19 budget, out of the K335 billion approved budget only K281 billion was utilised representing an almost 20 percent drop.

In the 2019/20 budget, out of revised K1.84 trillion,  K1.4 trillion will be spent on emoluments and Other Recurrent Transactions leaving only K470 billion for development projects. The K470 billion earmarked for development projects, K333 billion is foreign financed and domestically financed projects amount only to K137 billion.

President Peter Mutharika has been proclaiming that his government wants the economy to become private sector led by supporting the growth of the private sector through creation of conducive operating environment. n

Avatar
Steve Chilundu
Previous Post

MRA hints at new revenue modalities

Next Post

Some things that we take for granted…

Related Posts

tabitha | The Nation Online
National Sports

Women’s football blueprint takes shape

April 18, 2021
Minister of Labour Ken Kandodo
National News

Ministry defends ‘borrowing’ of Covid-19 funds

April 18, 2021
Taken into custody on Saturday: Sumbuleta
National News

Sumbuleta gets behind bars

April 17, 2021
Next Post

Some things that we take for granted...

Opinions and Columns

Big Man Wamkulu

Hot babe wants to trap me, should I ran?

April 18, 2021
Political Uncensored

Mighty mess!

April 18, 2021
My Thought

Chakwera’s indecisiveness will be his downfall

April 18, 2021
People’s Tribunal

Cut the crap, act on abuse forthwith

April 17, 2021
https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf

Trending Stories

  • Lilongwe Road | The Nation Online

    OPC frustrates roads projects

    0 shares
    Share 0 Tweet 0
  • Ministry defends ‘borrowing’ of Covid-19 funds

    0 shares
    Share 0 Tweet 0
  • Traders fall short of Maize export demand

    0 shares
    Share 0 Tweet 0
  • Caroline Kautsire: English Professor at Bay State College in Boston

    0 shares
    Share 0 Tweet 0
  • Chakwera’s indecisiveness will be his downfall

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.