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| MRA inefficient, reveals survey |
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by
Ephraim Munthali, 29 January 2004
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15:55:29
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The Malawi Revenue Authority (MRA) is the worst efficient public body when it comes to decision making, according to an investor perception survey.
But investors singled out the Reserve Bank of Malawi (RBM) as being relatively more efficient in decision making followed by Malawi Investment Promotion Agency (Mipa).
Presenting the preliminary results at a workshop in Blantyre on Wednesday, Timothy Shawa of Mipa, said the legal system, Immigration and the Ministry of Finance followed the MRA.
The survey confirms long standing concerns from the private sector that bureaucracy in Malawi’s public institutions is frustrating existing and potential investors.
Meanwhile, the survey has also revealed that 63 percent of domestic firms interviewed plan to maintain their scale of operations within their given sectors.
But four percent plan to either close down or contract out while the remaining 33 percent want to expand.
“These results definitely represent loss of investor confidence in the economy,” Shawa.
Over the past three years, more than 30 companies have shut down, according to official figures from the Malawi Confederation of Chambers of Commerce and Industry (MCCCI).
Shawa said it is important for government to rebuild investor confidence through continued improvements in infrastructure and the regulatory framework.
He added that Malawi needs more technically trained human resource, create a favourable climate for investment and improve the market size through such initiatives as regional economic integration.
The survey also revealed that about 45 percent of foreign companies plan to diversify to other countries while 46 percent want to maintain their present scale of production.
This survey covered the years 2000 and 2001 but was carried out from March last year
Six institutions carried out the survey: National Statistical Office (NSO), Reserve Bank of Malawi (RBM) and Malawi Investment Promotion Agency (Mipa).
The other three are ministries of Finance, Economic Planning and Development and Commerce and Industry.
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