Maybe one way of helping create more SMEs in Malawi is to provide equipment to small traders of perishable products, to help industrialize a part of their workflow and processes.

Vegetable sellers for example could be incentivized by creating a cooperative that buys fruits and vegetables from them, and creates canned products. And products like Ketchup, chutney and sauces and condiments, which have a longer shelf life.

These are products which millions of Malawians use every single day in food preparation, or in restaurants and food outlets.

But there are two main reasons why these traders need help in this regard. Firstly the cost of machinery is unaffordable. And even if some traders can afford the cost itself, when you add on the logistical costs and import duties of bringing this equipment into Malawi, they largely become unaffordable for many traders. Further, if you buy expensive equipment, then you need a workshop to put it in, you also need to pay for electricity, maybe to employee a couple of people. You may even need a guard to guard the shop/ micro-factory at night. And several other considerations, as well as permits and health and hygiene compliance checks. All these are things which most street traders don’t have the capital for.

The second reason is waste prevention. If you travel past any township in Malawi by road and inquire about unsold products, traders often reveal that these items are either given away or simply thrown out. Such waste is particularly unsustainable, given the significant resources—including water—required to produce these vegetables and fruits.

So maybe the next government in Malawi should consider an initiative where they deliberately create cooperatives for groups of traders, similar to what is being suggested here.