The 2019 Annual Economic Report has said that  parastatals have had their working capital negatively impacted, after a   worsened liquidity position.

For instance, the report says that by December 2018, Blantyre Water Board (BWB)’s liquidity position continued to be weak and below desirable levels at a ratio of 0.37:1, meaning that the board was still unable to cover its current liabilities as they fall due. During the same period, the liquidity positions of Central Region Water Board (0.73:1), Northern Region Water Board (NRWB) (1:1), Malawi Housing Corporation (0.62:1), National Oil Company of Malawi (1:1), Malawi Post Corporation (0.58: 1), Lilongwe Handling Company (1.87:1), Malawi Institute of Management and Airport Development Limited at 1.13: 1, were barely liquid.

On the ground, parastatal performance remains subdued despite government instituting reforms in over 40 State-owned enterprises, four years ago. Professor of finance and corporate strategy at the Malawi Polytechnic James Kamwachale Khomba told The Nation newspaper that parastatals are failing to devise new revenue streams and improve efficiency because the reforms are yet to translate into action. This comes against the backdrop of five parastatals posting losses at the end of December 2017, according to the 2018 Malawi Annual Economic Report, with the rest of them posting reduced profits.