Kaferapanjira tears apart Mutharika’s economic growth projection

Malawi President Peter Mutharika statement that the country’s economy is projected to register a real Growth Domestic Product (GDP) of 5.4 percent in 2015,  has been taken with a pinch of the salt by captains of the business industry.

Kaferapanjira: Doubts Mutharika's projected economy growth of 5.4%

Kaferapanjira: Doubts Mutharika’s projected economy growth of 5.4%

Mutharika alawi expects its economy to grow by 5.4 percent this year

Mutharika told parlaiment that Malawi expects its economy to grow by 5.4 percent this year

Mutharika said despite the devastating floods and dry spells that damaged tobacco and corn crops, Malawi expects its economy to grow by 5.4 percent this year.

He said growth would rebound in 2016, reaching 6.5 percent.

But the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has said it is difficult for the government to justify the technique that will be used to register a projected real Gross Domestic Product (GDP) growth of 5.4 percent this year .

Floods in January displaced more than 200,000 Malawians and killed at least 176. Tobacco is Malawi’s largest export earner and the country is Africa’s largest supplier of the burley, or air-cured, variety of the crop.

MCCCI Chief Executive Officer Chancellor Kaferapanjira said the failure to pay a larger part of the K157 billion arrears that the government owes suppliers has resulted into inactivity among several businesses.

“The president is talking about the projected growth of about 5.4 percent but I do not know where that will come from, if we consider the conditions on the ground. The agriculture sector, we know, will suffer a lot because of the weather conditions which include very long dry spell. I, therefore, do not see where such kind of growth will come from. The alternative source of growth would be the private sector but then, the government owes these people a lot of money.

“He is talking about industrialisation, he is talking about private sector thriving. But we have seen how much the economy had shrunk and I am telling you from the experiences of our members because we visit them and I can tell you there is literally no activity in the majority of the businesses. K157 billion of arrears is a lot of money for the private sector,” Kaferapanjira said as quoted in the Daily Times.

He said many companies are writing the Ministry of Labour that they are retrenching so many people because there is no activity.

“ It is very sad. Then we hear the President saying we are delivering on our promises. But are we becoming any richer? Our per capita income has gone down and people are being laid-off, is that prosperity?” he said.

Kaferapanjira said the banks are now reluctant to give loans to some businesses fearing that they will not pay back which is also affecting the banks as thrive on people’s borrowing.

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Phodogoma
Guest
Ladies and gents remember that Malawo’s economy is growing. Come to Blantyre our Chipembere Highway is be being completed. Sure Mr Kafe if this Highway is completed our GDP will rise. Check the definition of GDP and you will agree with me.Even the five atr hotel and the presidential villas will add something to our GDP. The whiteman consider anything for GDP like roads, buildings,education(UNIMA is at 65 or top 100). All these will affect GDP. Mind you I am just ICAM’s CIFA graduate but I am able to understand some concepts in economics. It appears Kafe you dont what… Read more »
chindele chakufikapo
Guest

Minrand ndi gule nonse ndinu makape.be sober minded when dealing with matters that affect our country

Gule
Guest

Chancellor,
Good arguments, bit thr fact that your mother s house id behind Dr Chakwera s mother s I take your comments with a pinch of salt. Declare your political interest first.

midrand 2
Guest

Kafera… ndi choncho amadziyika ngati munthu wozindikila koma chikhalirecho amanyenga ma cleaner.

Teketeke
Guest

Kaferapanjira an MCP die hard. Mpaka K10milliom ngongole for MCP campaign. That’s why you are bitter. We know you are collaborating with Chakwera. Peter is both an economist and a professor of law. Professor Peter woyeeeeeeeeeeee!! Wait for 2030!!!!

ri
Guest

wakhungu akati ndikugenda nde kuti waponda mwala, Peter yu sanaceperetu kuti angamayankhule zacibwana zoti zidzamugwire pakhosi tsiku lina. Ngakhale Zifukwa zenizeni sitikuzipeza koma its a fact ndithu kuti kwaca ikupanga appreciate, in de sem way 5.4 yo ifikidwa ndipo anthu adzakhalabe akunena za manipulation, after all the whole world is manipulated.

Daniel Phiri
Guest

People are attacking Chancellor the person instead of debating his arguments. This is how pathetic Malawi has become. The poverty of ideas explains why Malawi is the world’s poorest country. I’m keen to know what will drive the 5.4% growth When Agriculture, the mainstay of the economy is in shambles due to the floods, mainly. When the private sector is laying off workers and reducing output how will the economy grow? Projections must be backed by realistic assumptions. You don’t just pluck figures from thin air!

chingolopiyo
Guest

Kaferapanjira, you are not the first doubter, Jesus had one disciple and also many doubted him. You may be in the chambers but that does not mean you know everything. You wait and see because the president has also economists and forecasters who he is working with. Now if you claim to know very well tell us is the economy going to grow or fail and quantify it. What are your projections 0% or -0%.

sipokosi
Guest

I agree with Kaferapanjira. With such huge amounts being owed to private sector by Govt. it should be understood by those in authority that this is stifling the growth of the private sector. It is really worrying. What sort of advice and direction does APM get from those around him? For the sake of Mama Malawi APM please have a second evaluation of those entrusted with the management of our economy.

namarokoro
Guest

A Kaferapanjira, what is your suggestion? Wasting time with critisisms, we want solutions. Your only worry is that the government has not paid you for your consultations and you think the whole country will suffer because of that. Useless CEO!

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