- Inadequate capital to inset in the industrial sector local investors depend on basic provision from the government and foreign aid and grants which may not be adequate or has too high interest rates.
- Most industrial suffer from inconsistency in the supply of raw materials due to fluctuation in output especially agricultural raw materials, industries dependent on natural raw materials, e.g. minerals suffer shortage when the mineral deposits decline
- Most industries face the problem of limited market due to the fact that much of the population is unemployed hence has low purchasing power.
- The country faces inadequate managerial skills which result in mismanagement and embezzlement of funds and unnecessary spending.
- There is the problem of poor transport and communication which hinder transportation of raw materials to factories and industrial goods to the market.
- The country faces the problem of insufficient and expensive power supply which hinders industrial development especially in the rural areas.
- Some industrial in MALAWI face stiff competition from industrial nations whose products have a big competitive edge over those from the country.