Cfao Malawi car sales drop 30 percent
The company invests K24 billion in new showrooms and service centres despite an economic slowdown.
Malawi's automobile industry is facing an economic slowdown, with Cfao Malawi reporting a 30 percent drop in car sales. The country imports approximately 1,000 vehicles weekly, many of them secondhand, particularly in Lilongwe and Blantyre.
Despite the downturn, Cfao Malawi is investing K24 billion in modern showrooms and service centres in Blantyre and Lilongwe, including an K11 billion facility in Lilongwe unveiled on Thursday. Managing Director Kennedy Kabaghe expressed confidence in an eventual economic recovery and increased vehicle demand.
The company also noted challenges in introducing electric vehicles due to a lack of charging infrastructure. Deputy Minister of Industrialisation Edgar Tembo urged local manufacturing of spare parts using mineral resources to promote value addition and reduce import dependence.
Why it mattersMalawi's automobile sector is experiencing reduced sales and investment challenges due to the economic slowdown.