The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has lauded the proposed 2026-27 National Budget, describing it as broadly production-oriented.
While describing the budget as relatively friendly to the private sector, the confederation has, however, urged the government to prioritise effective implementation and deeper structural reforms to ensure the budget delivers meaningful economic transformation.
In its commentary, MCCCI commended the government for maintaining strong allocations to agriculture, tourism, mining and manufacturing (ATMM) sectors, which have, collectively, been allocated K1.334 trillion, representing 12.2 percent of the total budget, alongside K664.4 billion for transport and ICT infrastructure.
It said the fiscal framework reflects a deliberate shift towards expanding domestic production capacity and strengthening industrial development.
The confederation also highlighted key allocations to the agriculture sector, including K111.45 billion for the Fertiliser Input Subsidy Programme, K60 billion for maize purchases and K60 billion for Admarc support.
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However, MCCCI cautioned the government to gradually shift focus towards productivity-enhancing investments such as mechanisation, irrigation expansion, agro-processing and export-oriented value chains.
“Large-scale government involvement in maize markets risks crowding out private traders and distorting price signals. Continued reliance on subsidy-driven interventions also raises fiscal sustainability concerns, particularly if revenue performance underperforms or borrowing pressures intensify,” MCCCI said.
On energy and mining, the Chamber noted that K17 billion has been allocated to the Malawi Mining Company to strengthen State participation in the sector, while K5.6 billion has been directed to the Mining and Minerals Regulatory Authority to enhance oversight and formalisation.
In addition, K219.8 billion has been allocated to the energy sector, underscoring government’s recognition of electricity as a critical enabler of mining, industrialisation and broader economic growth.
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However, MCCCI stressed the need to maintain a clear separation between regulatory and commercial roles in the mining industry to avoid conflicts of interest and ensure independent oversight.
On taxation, the chamber welcomed tax administration reforms, including the electronic service of tax documents, saying the measures could help level the playing field, particularly for small and medium enterprises (SMEs), by easing compliance burdens.
However, MCCCI raised concerns about the proposed supernormal profit tax, warning that it could discourage investment if not carefully implemented.
“While SMEs enjoy compliance relief, medium- to large manufacturers face heightened oversight, including retention of the supernormal profit tax, extended transfer pricing audit lookback periods to nine years, and strengthened administrative powers. These measures increase compliance costs and investor perception risks in capital-intensive sectors,” MCCCI said.
The Chamber has since emphasised the need to carefully manage investor confidence, particularly among larger firms, to avoid discouraging private sector participation.
Presenting the K10.978 trillion 2026-27 National Budget in Parliament on Friday, Finance Minister Joseph Mwanamvekha said the government continues to prioritise key productive sectors of Agriculture, Tourism, Mining and Manufacturing to stimulate socio-economic growth and development.