Malawi ranks poorly in attracting foreign investments due to red tape

Using ten economic indicators, a 2009 World Bank Doing Business Report has ranked Malawi in position 134 out of 181 world economies when it comes to attracting foreign investments due to heavy bureaucracy, APA learnt here Wednesday.

World Bank Doing Business ranks countries on the overall ease of doing business based on the indicators of business regulation that record the time and costs it takes to meet government requirements in starting and operating a business, trading across borders, paying taxes, closing a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors and enforcing contracts.

“Malawi performed poorly in areas like the number of procedures to start a business and the cost of starting a business is extremely high in the country,” the report said, adding that while it took several procedures to open a business in Malawi, it takes one step to do the same in overseas countries like New Zealand and 13 in Swaziland.

In addition, it takes 39 days to start a business in Malawi compared to 18 in Zambia.

In Southern Africa Development Community (SADC), Botswana tops the region as leader in regulatory reforms to doing business, while Malawi is ranked number 9 out of 14 SADC member states.