MICRO, SMALL AND MEDIUM ENTERPRISES

The population of Malawi is estimated at 12 million of which 80% are employed in agricultural sector. Malawi's GDP is about MK71.0 billion of which 60% is from commercial and smallholder agriculture and 13% is from the manufacturing sector and 27% from others.

With low GDP, the need for increasing cash income compels people to engange in businesses and for them to do this they need capital.

The Micro, Small and Medium enterprises sector in Malawi constitutes an important and meaningful component of economic development. The Government of Malawi maintains the development of Micro and small scale enterprises as a core element in government strategy to support economic growth, employment and poverty eradication.

In line with the need for increased economic growth, government set up the micro, small and medium enterprises support institutions to provide credit and specialised training services and DEMAT is one of the institution offering two main operational services: the Business Training and Micro Finance Services.

The role that the Micro, Small and Medium enterprises sector plays towards the economic development of the country cannot just be ignored. Income generation and creation of employment contribute a lot in the reduction of poverty. The majority of these micro and small businesses obtain credit from family members, friends and informal sources to start these businesses. With the need to drive the economy of Malawi and the mandate of DEMAT and its programmes it is best therefore that DEMAT takes a leading role in the Micro, Small and Medium Enterprises sector in the country.