Goodall says govt to devise zero-borrowing plan: Finance Minister rejects saying Malawi economy in God’s hands

Tough times call for Malawians as government has resolved to stop borrowing this year, a development that will affect delivery of public services in the country.

Goodall Gondwe: I don't remember saying the Malawi economy is left in the hands of God

Goodall Gondwe: I don’t remember saying the Malawi economy is left in the hands of God

Minister of Finance, Economic Planning and Development Goodall Gondwe told Times Television’s ‘Point Blank’  program on Tuesday that this is one of the practical measures that government will implement this year.

“We have been borrowing a lot of money. Previously, mainly in last year’s budget, we were borrowing at the rate of 50 or so billion per month.

“But we have now reduced to 6 billion per month starting from last December. This is a tremendous adjustment.

“At the time when IMF said we were off track that was with respect to financial year of 2014/15. This year we have made tremendous adjustments and we are now borrowing much less and our aim is to completely halt borrowing between now and June this year,” asserted Gondwe.

The Finance Minister said if they stop borrowing while budgetary support is not there, “we will have to adjust our expenditure and a number of some services will not be offered to the public”.

He added: “The consequences are clear. We will have to look at a number of some things where we need to have some cuts.”

Asked if that will not be a compromise on lives of Malawians, Gondwe said, “It’s what people have called sacrifices.  All of us we have to sacrifice in order to make up for what has happened. You can’t just have cashgate and use all the money and hope life will be normal.

“We lost a lot of money through cashgate, and we had to borrow to make up for that.”

Gondwe further said government will come up with policy issues that would  necessitate that everybody, including the Executive (President and Cabinet Ministers) faces the sacrifices that are needed.

The Finance Minister also took trouble to refute media reports claiming that he said that “the country’s economy is in God’s hands”.

“I don’t remember to have said that, it’s not in my vocabulary. Yes, everything is in God’s hands, but that is not what is said at all. It’s not in my vocabulary.

“The country’s economy is certainly firmly in government’s hands and certainly, we appeal to mighty God to help us to do the right things.

 

According to him, what the nation is passing through is not different from what a number of other countries [Tanzania, Thailand, Zambia and Korea, among others] are passing through.

“We will continue to adjust the national budget and balance the sums to get going.

“The fact that we are short of foreign exchange, it means we will have to take measures that will enable us to earn more foreign exchange to make up for what we have lost.

“We also hoped to have favorable weather to get enough food that the nation require and be in a position to reduce the inflation rate,” he explained.

He said if the inflation rate is reduced, “it is possible for us, more appropriately, to reduce the interest rates, and if interest rates are reduced, we will have an economy whose activities will be increased resulting in normal growth.”

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29 thoughts on “Goodall says govt to devise zero-borrowing plan: Finance Minister rejects saying Malawi economy in God’s hands”

  1. vyamtonda says:

    why shld we suffer coz of 577 CSO

  2. Winston Msowoya says:

    Mr.Wa Ku Mitchesikujaa,could you name who are practicing corruption? Not of course,the ordinary law abinding citizens.Mr.Gondwe knows precisely who are the criminals.

    1. The real "wa ku Mitchesi kujaaaaa!!!!" says:

      I hope your question is rhetorical.
      But just in case not … Report to you, Sir? Wasting my time?
      FYI, I have reported more than one to the authorities in the past, and one “waiona Bangwe”.
      What about you: What’s your story, Msowoya?

  3. Ngoma,Thomas, London says:

    Thank you for listening and reacting in this way. We are all in this together. We all must fight for the betterment of this nation whether inside or outside govt. Near zero borrowing is the right thing for the govt to do given the circumstances of the economy. Next are two challenges for your evaluation. a) Balancing the primary deficit of govt budget by cutting costs except for critical items. This is for our national economy survival. You have alluded to that already so kudos on that path. b) the second and to me the most important aspect for this Malawi economy – find a solution for the dislocated Balance of payments (BoP). This external deficit is ruining our national wealth by eroding the kwacha exchange rate. It is ruining our national pride by allowing the IMF to set up shop in our backyard. Borrowing from the IMF is intended to be only for the short term. In Malawi we think it is a way of life. So here is the suggestion so the nation can graduate from IMF; some might say to escape from IMF fangs of the current extend credit facility (ECF). Please cut all external expenses to reduce the current account deficit -CAD. Cut non mission critical overseas embassies, put a self imposed embargo on govt spending overseas/no importing except for essential items such as medicine only. Try to persuade Malawian citizenry to sacrifice by not importing non essential goods in the short to medium term. That will stabilise the kwacha some what. Negotiate with private sectors/companies to postpone repatriation of profits overseas to give the economy some breathing space. These measures will go along way to achieve fiscal balance and rebalancing of the whole economy.
    Finally, I am sure you can guess what I am about to say next. “Cut down interest rates to spur investment and job creation”. Give the economy a fighting chance to grow and relieve our people of the economic suffering. Thank you.

  4. wa ku Mitchesi kujaaaaa!!!! says:

    The minister is right to dissociate himself with the idea that “the country’s economy is in God’s hands” – a defeatist belief which is actually prevalent among Malawians. It discourages critical thinking, and encourages laziness in analyzing some of our critical problems. And, it is a result of ignorance of scientific thought, and overzealous attitudes based on our limited education, and therefore, limited understanding of religion. Note that Malawi is basically an uneducated society, by modern standards.
    No politician in Malawi will say, publicly, more than what minister Gondwe has intimated here; without getting his head chopped off, figuratively. Or at least having his life threatened, by someone who thinks what Gondwe has said is “criminal”, period.
    This is part of the call from APM and others for Malawians to change our way of thinking; our way of doing things (MO), etc.
    Do not just sit around “waiting for Godot”! Everyone can do something to help solve our economic problems. For example, by not engaging in corrupt practices, and fearlessly, reporting any such.

  5. Tengupenya says:

    Let’s get real with the consequences of cash gate. Non essential services provided by government and the attached positions have to go.

  6. Is this a joke? says:

    So the governments of the last three prz’s steal billions of kwachas, and borrow billions more from the chinese for hotels covention centre presidential villas that nobody uses and all those govt party people make tons of money from corruption, and now they want us to make sacrifices. fuckin joke!

  7. Mchanda B says:

    @ Truck,

    I think the money has to be made up by borrowing indeed since they are running away from convicting themselves over the same…eiiiiiiii sham.

    the earlier they resign the better. we need a govt that will be able to confiscate cashgate proceeds.

  8. Tt says:

    Kkkk, the country is not in gods hand! That’s what we rationality coz no moron would leave something to any entity that DOESNT Exist! Clearly I find in hypocrite for you guys to pray when you know things need humans to be done and not to be done some spooky incompetent Jewish god, with his gayish son!

  9. Kadakwiza says:

    Let us remind Hon.Goodall Gondwe, we Malawians are suffering. We are hungry, we don’t have jobs. What our government can offer right now is a travelling passport so that we find other means outside the country. Malawians are all over the world looking for everything such as food, education, jobs and clothes. This shows that our government have failed to take responsibility of its people. It’s sense when we call for our leaders to resign. We don’t hate our president no. He is a good man with good heart for Malawians, and we know very well he loves us all. But the problem is that we can’t continue suffering, we can’t continue to stay outside the country because it’s better to be with our families. That is why we say, we can’t sacrifice anymore. We know Hon. Goodal Gondwe’s economic policies are good for Malawians but the problem is that our government have no money. And can’t sacrifice anymore, that is why we want someone who can take us out of poverty which have been there from 1964. Just quit my honorable finance minister. You have failed Malawians big time. Why punishing poor Malawians who didn’t even taste cash gate money.

  10. Tukombo says:

    Gondwe and Mathanyula just put your tails between your legs and disappear into oblivion. Thanks, we are sick and tired of y ‘all

  11. Akungolonje says:

    May be you and Mathanyula need to reach out to God, may be you just need The Most High God in your vocabulary

  12. Che Sipindulo says:

    For how long are we going to lament about cashgate. Please find some excuses. You can surely do better. The fact is that you have failed to run the country .Kiiiii.

  13. Masida Mbano says:

    If we lost money through cash gate then the solution is to get it back from the thieves even selling their property, thats the solution, not borrowing. Then you are encouraging theft

  14. Boliwoli2 says:

    Iwe old man u know that ur aunt in Bwengu are dying with hunger? This is so becoz of u and Peter adminstration.Stupid.

    1. Mcewa says:

      Boliwoli? palibe mfundo pa izo mwalemba.

      What about minister of Agriculture? What is his job, if hunger is minister of Finance responsibility, and president.

  15. Truck says:

    WE LOST LOTS OF MONEY THROUGH CASHGATE AND WE HAVE TO BORROW TO MAKE UP FOR THAT Kiki! NOT TO CONFISCATE CASHGATE PROPERTIES AND MONEY AND PUT THAT MONEY IN GOVERNMENT ITS A JOKE DONT FORGET DONORS ARE WATCHING DONORS WONT RESUME AID IF YOU WILL FAIL TO CONFISCATE THAT CASHGATE MONEY AND BE READY OF TOUGH TIME A HEAD

    1. JJB says:

      Are you that stupid?

      How many people with real CashGate money have been convicted?

      Do we still have the forfeiture Act?

      Think before you pretend to know.

  16. PAUL says:

    if you were borrowing 50billion a month because of CASHGATE, are you trying to tell us that we are still suffering the stings of CASHGATE during Bingu’s Regime? coz I understand JB’s CASHGATE was less than 50 billion compared to 500billion Bingu CASHGATE.

  17. mphatso says:

    We need early elections we can not wait for 2019 inflation will be even more out of control, kwacha will be 2000Mk to a dollar. This government has clearly failed to run the economy.

  18. LessChildrenPlease says:

    Malawi must live within its means.

  19. LessChildrenPlease says:

    Malawi must live within its means. Do not spend what you do not have. Simple.

  20. Cleo says:

    G G l dont trust your facts for instance you are comparing Malawi to countries like Tanzania , Zambia ,Hong kong where GDP far much better than us.We need lasting solutions in order to be bailed out from this economic turmoil.

    1. Mbuli yo phunzila says:

      Where did he mention Hong Kong? And he did not compare Malawi with any country, he compared what we are going through. (Floods followed by no rain, has nothing to do with GDP, and GDP is not the responsibility of Government, it is what the country produces, and we claim to be a free economy, and you blame Government for low GDP

      What an idiot

  21. kimwanza says:

    Jst step down Goodal….. dzaku nyera

  22. pido says:

    Which is which? Cashgate effects o common trends with Tanzania and Thailand?

  23. All-i-can-say says:

    Mr Gondwe. What are the measures you are taking to start earning more forex than we use for imports? We keep hearing these kinds of statements and nothing is getting done. We need a plan for you guys now!! You are still thinking in terms of rain-fed agriculture and hope to get rid of hunger? What you must appreciate is that the cost of producing food is too high for peasant farmers and therefore unsustainable. As an economist, can you you see the wood from the trees? Nothing radical is coming out of these brain-dead old fellas. What a shame. Malawi needs radical decisions if we are to make any progress.

    If you guys have run out of ideas, please stand aside and let others have a go. God gave man dominion over affairs of his life and it’s a mockery to God that we are still praying to God to give us wisdom when we have all the answers right in front of our noses. It’s called debate and discussion and looking at the problem and arriving at the best course of action. God will not listen to people who cannot help themselves. Let’s use our brains to solve our problems!! This notion of praying for things is quite shocking and an embarrassment in the 21st century.

    What is lacking in Malawi is leadership which people can believe in and inspire them to a new Malawi. unlocking the potential in our country requires a lot of creativity and cannot see any in this Mutharika team. Just sitting and doing things as usual is a waste of lives and opportunity. Dr Banda never used development aid for recurrent expenditure. No wonder we are failing to fund critical public service provision. We should have been saying that in absence of aid, the things we can forgo are non-critical projects while making sure that service delivery is not compromised. Priorities have to be re-aligned to avoid squeezing these critical areas.

    Malawi needs action and not empty words. Sick of this!!

  24. Bikiloni Nachipanti says:

    This man is indeed nonsense…Now it makes sense why he gained popularity which he didnt deserve during Late Bingu’s era. It was not him driving the economy. Chitsulo cha njanji was whipping him to perform, Bwampini is failing to… How I wish GG remained ritired in active politics. Adzikaweta ng’ombe mbofyo mbofyo mbofyoooo!!

  25. Papa says:

    Uchekulu, waluwa lubiro. Mahara yachepa. Lekela bana. Ujipase wunthu na vinjeru.

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