Malawi calls for strong investment in skills development for job-rich growth

LILONGWE – Speaking in Lilongwe during an ILO Skills for Trade and Economic Diversification (STED) project report validation workshop which took place at the Bingu International Conference Centre, Mr. Kabambe highlighted the fact that the Malawi National Export Strategy (NEST) had identified low skill levels as one of the main factors limiting Malawi’s move into higher value added production thereby limiting its export potential, economic and employment growth.

The government of Malawi values the importance of investing in skills development as the country is moving from being a predominantly importing and consuming to an exporting one. - Kabambe

Mr. Kabambe further stated that international evidence has shown that countries that have succeeded in linking skills development to gains in productivity, employment and development have targeted skills policies towards three interrelated objectives of matching skills supply to current demand, helping workers and enterprises to adjust to the ever changing skills requirements and building and sustaining competencies for future labour markets.

He noted that the oilseed and horticulture sectors have the potential to boost the country’s export earnings but that this could only be achieved if there is evidence based information to help in identifying business capabilities and skills needed to enhance the sectors export competitiveness.

This is why I consider this research report a timely intervention because the STED research results and results of other related work will help my ministry to ensure that investments in skills development are channeled towards addressing clearly identified current and future industry skill needs He said

The research on skills for trade and economic diversification was undertaken in the oilseeds and horticulture sectors to investigate the skills implications of the two sector’s capacity to attain export competitiveness. The research identified a number of business capability gaps that must be improved if the two sectors are to reach the levels of competitiveness necessary to impact Malawi’s trade deficit.

The identified business capability gaps include weak innovation and product development capacity, limited capacity to comply with international quality standards, limited capacity for international logistics and transportation and limited international marketing experience among others. According to the research findings, these business capabilities have significant skill implications.

Meanwhile, Chief Technical Adviser of the ILO supported STED Project Ms. Naomy Lintini told the workshop participants that the Malawi STED research has confirmed the huge growth potential that the oil seed and horticulture sectors in Malawi have as initially highlighted by the National Export Strategy. She noted that going forward, what was important was to develop strategies to effectively address the identified business capability gaps.

The STED report Validation Workshop was attended by private sector companies, the Employers’ Organizations, Development partners, Civil Society Organizations, the Malawi congress of Trade Unions, senior officials from Ministry of Industry and Trade and Ministry of Labour, Youth and Manpower Development. The Malawi STED research work was made possible with funding support from the Government of Sweden.