Experts have weighed in on the recent announcement by Minister of Trade, Vitumbiko Mumba, to shut down 25 retail businesses owned by foreign nationals by the end of April, in a bid to promote local entrepreneurship.
Speaking during a political rally in Blantyre, Minister Mumba said the move aims to create space for Malawian small-scale traders who are often pushed out of the market by foreign competition.
Economic expert Mike Banda welcomed the decision but emphasized the importance of instilling a culture of patriotism among Malawians.
He expressed concern that such initiatives may be undermined if foreign traders continue to operate businesses behind the scenes using Malawians as fronts.
“There is a trend where foreigners register businesses under local names to bypass the law. Without proper monitoring and enforcement, this move might not achieve its intended goals,” Banda warned.
He also advised the government to first establish clear implementation strategies before enforcing the closures, arguing that this would help reduce capital flight as many foreign traders send significant amounts of money abroad.
On the other hand, social commentator Joseph Kandiyesa noted that while the policy has its merits, it could lead to unintended consequences such as increased unemployment.
“Some of these foreign-owned businesses employ locals. Their closure, without immediate local replacements, could result in job losses,” Kandiyesa said.