So the Malawi Government seem to have a way of disposing of State-Owned companies but does not seem to have a way of establishing new companies.
The current situation which sees importing more than it exports, seems to require an intervention such as establishing companies to manufacture high-quality substitute products and services to reduce dependence on imports and also to manufacture products for exports from the raw materials we produce so as to increase the value of exports. Just the imposition of import taxes and devaluation does not seem to be a sustainable solution for managing the import and export balance.Normally in the capitalist economy, it is expected that entrepreneurs would see the need to manufacture substitute products for local consumption and for exports but for some reason, Malawian entrepreneurs are not taking this opportunity to establish new companies. Thus a direct intervention from the government itself to establish new companies seem to be important.
Where international organizations such as the International Monetary Fund and World Bank often require the government to dispose of its state-owned companies through privatisation, the Malawi Government may still establish companies through the Public-Private Partnership Model. So apart from empowering the Public Private Partnership Commission to dispose of state-owned companies, the commission must also be empowered to establish new companies. In this way, direct intervention of the economy in filling the economic resource gaps would be ensured.
We don't need to devalue our currency or impose high import taxes(an indirect intervention) to manage the trade deficit when we can just establish new manufacturing companies(a direct intervention) for import substitution and export value addition and diversification where entrepreneurs are failing to achieve this.
