The Consumers Association of Malawi (CAMA) has called on government to urgently consider merging parastatals and regulatory bodies with overlapping mandates as a measure to improve efficiency and control costs amid the country’s fiscal challenges.
In a statement signed by CAMA’s Executive Director John Kapito said Malawi is currently facing serious economic constraints that have affected the performance of many public institutions.
While acknowledging that many regulatory bodies were established with good intent, Kapito noted that several now have similar mandates, overlapping functions and parallel structures.
He added that Malawi is currently facing several fiscal constraints that have impacted the performance of many public institutions and it have many Regulatory Institutions operating in related sectors
“Given our current economic situation Malawi cannot afford to continue funding parallel structures,”The Executive Director explained
CAMA outlined four key problems caused by duplication multiple agencies conducting inspections, licensing and monitoring in the same areas, unnecessary competition for budgets and visibility, increased costs to taxpayers for separate boards, offices, vehicles and staff and poor performance due to stretched and under-resourced budgets.
The consumer watchdog argued that merging institutions with similar mandates will reduce administrative costs, strengthen regulation and ensure that limited resources go directly into service delivery.
“Consumers deserve a Government that is efficient and accountable and by merging bodies with similar mandates we can streamline decision making and put more resources into actual service delivery instead of bureaucracy,” Kapito emphasized
He listed several proposed benefits of the mergers, including cost savings from reduced duplication, stronger and better-resourced institutions, clearer regulation with faster approvals, less confusion for businesses and citizens, improved governance and coordination, and the creation of one-stop service centers.
The association said this approach aligns with global best practices that have successfully merged regulators to improve governance and reduce fiscal waste.
It has urged Parliament, the Ministry of Finance and the Office of the President and Cabinet to commission an immediate functional review of all regulatory bodies to identify areas for merging.
“We are not calling to weaken regulation, we are calling for smarter, leaner Government that delivers more with less at a time when Consumers need it most,” Kapito stressed
