“The labour market is 91 percent informal, unemployment stands at 19 percent and 55 percent of workers face labour underutilisation, a significant drag on productivity and inclusive growth.” The bank further said businesses are operating in a difficult environment characterised by high costs, unreliable electricity and foreign exchange distortions, resulting in low productivity and underutilised capacity across sectors. “These constraints have significantly weakened private sector confidence, reduced production capacity and discouraged both domestic and foreign investment,” he said. On the other hand, private investment averaged only nine percent of GDP and accounted for less than 60 percent of total investment. The bank said this is an indication that private sector investment in Malawi has fallen sharply and remained volatile over the past five years, undermining productive expansion, job creation and stronger economic growth.