BLANTYRE, Malawi, May 18 (Xinhua) -- Many companies failed to show up at this year's International Trade Fair held in Malawi as their businesses were severely affected by natural disasters and global economic downturn.
A total of 122 exhibitors participated in the fair kicked off by President Lazarus Chakwera on Wednesday in the country's commercial city of Blantyre, down 33 percent from last year's event.
The fair is in its 33rd edition that is scheduled to end on May 26 with the theme "Rebalancing Malawi's Trade Through Industrialization."
Many ailing companies failed to bring their products to the exhibition, Secretary for Small Scale Business Operators in Malawi Tennison Mulimbula told Xinhua.
"Malawi has been grappling with economic challenges lately, resulting from the COVID-19 pandemic and natural disasters. These factors have significantly impacted many small-scale businesses, hence the low turnout," said Mulimbula.
Tropical Cyclone Freddy devastated the country's southern region in March. Floods and mudslides caused by Freddy have killed over 1,000 people and displaced 660,000 others.
The government should consider providing soft loans to support the small-scale businesses, Mulimbula said.
"Most of the companies participating in the exhibition are agro-based, and they have been affected by Cyclone Freddy," Mulimbula added.
President of Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Lekani Katandula shared a similar view with Mulimbula. Most of the industrial companies have not recovered from the economic shocks the country was facing in the past three years, he said.
The COVID-19 pandemic has caused unprecedented disruptions in the global supply chain, making it difficult for local industries to import essential raw materials and other inputs, he added.
Katandula said: "This has resulted in a decline in industrial and agricultural output. Moreover, the cyclones damaged local infrastructure, including critical electricity generation infrastructure for industrial activities and irrigation."
"Consequently, foreign exchange earnings from exports have decreased, while the demand for imports to meet domestic consumption needs has increased," he said.
