Malawi economy in bad shape, reflections on the ground shows – Jooma

Former economic planning minister Ralph Jooma has said radical changes are needed to revive Malawi’s economy, which is in bad shape and requires a fresh approach.

Jooma: Reflections on the ground shows economy in very bad shape

Jooma: Reflections on the ground shows economy in very bad shape

The Mangochi-Monkebay parliamentarian for People’s Party (PP) told parliament that his party has “serious reservations” with the assumptions that are underpinning the 2015/16 national budget currently under debate in the House.

“We are told that the economy is projected to grow by 7 per cent and inflation will decline to 16.4 per cent and interest rates will also decline. We wonder what positives government is foreseeing that we and Malawians in general are not seeing,” said Jooma.

Jooma said that all indications show “a precarious situation on the ground.”

He noted that this year, Malawi has not produced enough grain and consequently, therefore, staple food prices will skyrocket.

“Inflation in Malawi is directly correlated with food prices. Secondly, although it is being highly proclaimed that we have a lot of foreign reserves now, the reflection on the ground is not the same, and the exchange rate is somewhere between K460 and K480 to US$1.

“So basically, Mr Speaker, Sir, we think that inflation will not be as low. Exchange rate will not be as stable. Interest rates will remain high and industry capacity utilization will subdue and therefore hamper economic growth because the economy will not be able to produce the projected goods and services. This is the reality,” said Jooma.

Meanwhile, Minister of Finance and Economic Planning Development Goodall Gondwe concede that the country is going through turbulent times.

Speaking during a breakfast meeting organised by the Association of Early Childhood Development in Malawi (AECDM) to lobby for more funds towards early childhood development, last Wednesday, Gondwe said the economy is in “bad” shape.

An economic observer told Nyasa Times that although DPP had “rigged the May20, 2014 election, it will not be able to rig the economy”.

He observed that the majority of the country’s leadership was more interested in political expediency rather than pragmatic bread and butter issues.

To restore Malawi’s position on a positive economic growth path, he suggested an investment is needed which calls first for investor confidence and security.

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11 thoughts on “Malawi economy in bad shape, reflections on the ground shows – Jooma”

  1. Ujeni says:

    Better than if JB was still a president? Think of the useless trips with big entourages she used to hook from capital hill, opening n planting stones everywhere, elevating n promoting Chiefs everyday, Cashgate n many more. Where would Malawi be today? I am very much afraid. Peter is not ticking but better under him today.

  2. Rodgers Banda says:

    The one who will take over from DPP will inherit problems like JB while 92 billion is in Switzerland (bedroom) Stolen money is what is working now to make -4 percent inflation and by the time they will leave govt it will be -80 percent.

  3. Zebede says:

    Our country actually lost direction/focus from 1994, may be due to excitement brought about by multiparty/freedom. We are all aware that Malawi’s economy heavily relies on agriculture(especially crop and livestock production) and through agriculture the country was able to feed itself and generate adequate amounts of the most needed foreign exchange/currency. Fortunately, before 1994 all Malwians were fully and actively involved in agricultural production i.e from Head of State, ministers, MPs, civil servants, agricultural companies(Chamwabvi, Press Agriculture and many more), commercial/estate farmers to subsistence farmers. This in turn resulted in more agricultural production than the country’s local needs, such that all excess was destined for export. Tobacco(all types) was also grown under strict controls(quota system and registration of growers). There were no vendors, everybody was a producer. Malawi therefore had no problems in formulating a national budget with a lot of surpluses and not deficits. However, agricultural production has drastically since 1994. Why?
    1. Most Malawians have withdrawn from farming.
    2. Very poor agricultural marketing, thus a disincentive to agricultural production.
    3. The country’s leadership not partaking in agricultural production thereby not leading by example as opposed to the era before 1994.
    4. Poor agricultural extension services.
    Inorder to bring back the old good days we all need to go back to our drawing board and appreciate the fact that agriculture still remains the mainstay of our economy. I would like to call upon our leadership not to lose sight of the fact that without a well organized and focussed agricultural production programme it will be extremely difficult to draw a budget that will sustain Malawi. We will remain a destitute country if we take the business as usual attitude and not seriously and critically look for long term and workable solutions.

  4. mosioatunga mosioatunga says:

    peter is big man

  5. Christopher peck says:

    Invite more industeries into the the country
    Intetest rates to be slashed for export oriented industries that sell more than 70% in forgien exchange
    Reduce taxes on manufactured goods made in malawi that are exported
    Use home produce from agricultural sector to promote industry

  6. Nyamata wa kwa Mayaka says:

    Boma labvutika kwambiri pankhani ya za chuma

  7. DPP CHIEF SUPPORTER says:

    I am a DPP supporter and I voted for Professor Peter Mutharika. I would want DPP to rule this country. However I have reservations:

    1. The economy is not fairing well. People are not interested in economic statistics. We voted for him to make sure the lives of people are improved. Peter has not told the nation how he is going to tackle poverty which is rampant in the country. The DPP government is painting a rosy picture that the economy is good when it borrowed money to cushion the economic vacuum

    2. It is not justifiable to, proclaim that we have enough maize in our silos when our ADMARC markets are empty and many people are eating bush shrubs just to survive when a few individuals are basking in the glory of opulence

    3.Peter has shown that he is a puppet indeed because there is nothing he can point that he has done within this one year. What has he fulfilled in his DPP manifesto except the NEW WORLD ORDER.

    a)That is why we have diminishing and uncontrollable insecurity with the ministers being the victims,

    b)increasing incidences of arms robbery and crime, slow pace in concluding cashgate cases including that of Ralph Kasambara,

    c)the unceremonious dropping down of Bakili Muluzi case,

    d)NAC gate,

    e) bribing of journalists by giving them kangachepe at Kamuzu Palace,

    f) MK92 billion audit report,

    g)MSB dubious sale currently on hold awaiting the passing of budget,

    h) huge pay rise for ministers and president current on hold and people do not know its status,

    i)JB self exile without any explanation from the government

    j)Nankhumwa still being retained despite using his late brother’s certificate,

    k)nepotism favouring Lomwes for appointing top notch positions,

    m) Pay rise for UNIMA fees

    n)Govt to introduce user fees in hospitals so that the poor should die

    o) Ben Phiri retained despite his resignation

    p) Introducing electronic transaction law to gag online media sites

    q) etc

  8. Comment on says:

    Hon former Minister this is good observation on Malawi economy and proceed to say the plan to achive economic growth as an MP, could say bra… bra….

    In my opinion you were entrusted on Parliamentary position to steer up economic growth for our country so that it translate to the growth of our economy and not to take the responsibility of a mere journalist investigative responce and stretch your mouth to unlimited stretch with makanda ntchembere.

    Everyone knows your weaknesses as someone that did not follow up with liquidity while in office to an extent of us tax payers losing out billions of taxes. Again you have a case of negligency by public office. dont stretch us anymore with your useless comments. otherwise you pose a great risk of answering the disease you created “cashgate’, while holding public office and iligally earning our money as salary.

    In my opinion you also benefited from the cashgate. You should not have been selected to Parliament if it were not for cashgate I supose

    As an MP I would concentrate on team work towards Malawi prosperity and not party issues where you even fail to understand a thing. If you can manage a newspaper read Daily Times on Business page 11 right lower page despite it being uncredible source by vertue of its nature a newspaper.

    So you might do us citizens good service by encouraging all Malawians to work hard earn a living through personal business other than taking away the little hope we have for you MPs. No stupid politician should comment on this. We want only those with credible unbiased mood to comment on economy other wise we are tired of you all politicians regardless of which party afiliation you belong.

  9. Omex70 says:

    “Although DPP rigged May 20, 2014 election, it will not be able to rig economy.”kikikikiki

  10. nYAU SITHOBWA says:

    Zakhala bwino anye Alomwe amenewa pano ndiye adzadza mu town yathu ya Lilongwe akungoyala paliponse

  11. kanyimbi says:

    People like Undule Mwakasungula who were calling the west to impose sanctions on Malawi should now come forward and tell the west that now Malawi is in a bad situation. It is easy to destroy than to build.

Comments are closed.