The UK Department for International Development (DFID) has said Malawi needs a business sector that creates jobs and growth to be able to break the poverty trap.
DFID Head of Office, Jan Marshall, said this during the inauguration of a margarine manufacturing plant which has been built by Sunseed Oils Limited in Lilongwe.
Marshall said through the Malawi Innovation Challenge Fund (MICF), the UK government is committed to support Malawi eliminate poverty.
She, however, said it is important to look at how the two countries can improve trade relations.
“Our priority is to make sure that the UK Government is taking all the opportunities to encourage UK companies to invest here in Malawi. In this way, we can also help the Malawi economy to be an environment that is open to investment that benefits Malawi,” Marshall said.
She said it is important for the private sector to think outside the box and start creating jobs that will eventually see the country grow its economy.
Marshall said the MICF is aimed at making the private sector to innovative and help the government in job creation.
“Through this instrument the Malawian private sector is expected to rise to the overarching challenge of poverty reduction and human development.
“The projects that are being implemented under the MICF are expected to create jobs and improve the livelihood of the beneficiaries through the implementation of successful inclusive business models, rather than solely placing reliance on the government,” she said.
She further applauded the private sector for its contribution to the economy.
“The project we have launched shows that Malawi firms have the ability to test new innovative ideas and carry the associated risk. This is central to the concept of the MICF which supports innovative ideas that are perceived as slightly too risky or have too low a financial return to go ahead on purely commercial terms but with assured development impact in terms of increased employment or returns to the poor,” Marshall said.
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