Malawi economy not ticking all the boxes -Ecama: Magalasi upbeat on revival

Radical changes are needed to revive Malawi’s economy, which is in bad shape and requires a fresh approach, Economics Association of Malawi (Ecama) has said.

Kachaje: Malawi economy in bad shape

Kachaje: Malawi economy in bad shape

Magalasi: Reforms key to economic revival

Magalasi: Reforms key to economic revival

The group’s president Henry Kachaje said it clear in the light high inflation rate at 23 percent as of August 2015, according to National Statistical Office (NSO), high interest rates in commercial banks, hovering around 37 percent as well as a downgraded gross domestic product (GDP) growth rate of three percent this year from an earlier projection of 5.5 percent, that economy is not ticking.

Unemployment levels continue to rise including for university graduates.

An the International Monetary Fund (IMF) mission to Malawi has since declared the country’s three-year Extended Credit Facility (ECF) off-track due to fiscal slippages equivalent to about two percent of GDP, which emerged during the second half of 2014/15 financial year, in part because of overspending on the wage bill.

Kachaje said there need for quick “fix “solutions so that the economy gets back on track.

He said IMF is only giving “statistical evidence” on Malawi’s ailing economy but the people are feeling the pinch.

Ecama president said the government must intervene and come up with policies that ensure a change of direction and policy realignment so that policies the country is developing and pursuing are aligned to long-term development vision.

He said the country need to be prioritising “critical areas.”

President Peter Mutharika’s chief economic adviser Collins Magalasi, who participated in the debate organised by Ecama in Blantyre, admitted that Malawi is in dire economic situation.

“We do not have to wait to be told that our economy is not in good shape, but our duty as government is to keep improving and that is what we are trying to do,” Magalasi said.

Magalasi said most of the economic challenges the country is facing today were inherited by the previous People’s Party administration.

He said Mutharika government has prioritised the public sector reforms “so that we become efficient and effective.”

Magalasi said the reforms are key to economic revival.

Meanwhile, the Malawi kwacha is on a steady appreciation path and was trading at around K549.9343 against the dollar by Tuesday on the foreign exchange market, according to the Reserve Bank of Malawi (RBM).

This is a gain from a low of K565 to a dollar a few weeks back.

Foreign exchange market dealers have attributed the recent appreciation to, among others, declining demand for foreign currency and lower buying power among foreign exchange buyers or businesses.

The local unit has continued to appreciate against the greenback and South African rand, but is depreciating against the British pound and euro.

“I think there have been times when we see some temporal movement of the local currency against the major currencies, but what we must ask ourselves are questions as to why it is gaining, is it because we have produced more as a country?

“Is there something we can attribute to that kind of currency stability? If we cannot pinpoint to something like that, then we must get back to the drawing board and fix,” commented Kachaje in the local press.

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17 thoughts on “Malawi economy not ticking all the boxes -Ecama: Magalasi upbeat on revival”

  1. Attati Mpakati says:

    Magalasi, as expected, is yet again economical with the truth. Being an economist does not necessarily imply you have to apply the same precepts into explanations. To say the currecnt economic challenges were caused by PP is to say the least, insulting the intelligence of Malawians. You know, at least those who were awake, that it was your thug, Bingu who plunged this country into an economic tailspin. It took a less learned Joyce Banda ( when you compare her to the boasting of the Mutharikas that they are educated) to turn the country back on track. Yes, we have to admit she presided over a decayed financial management system, but she was not the architect. All sane Malawians can trace the thieving architecture to your mad, arrogant bigot called Bingu, who thought Malawi owed him gratitude. While he spoke of “kusolola” he and his brother Peter plundered the country, and he(Peter), today has the effrontery to boast about his ill gotten millions in American banks. Come on Magalasi, we all know where you come from and what really motivates you to do what you do….

  2. Phiya says:

    Bingu adathawitsa ma donors onse ndipo zinthu zidafika pamwana wakanaphala.amayi adazibwezela kenanso aziononga,pabwela APM akonzenso osati kupitiliza kuwononga,tikukuonani,muyesa tizavota potengela region?

  3. Niaphaphi says:

    Vuto ndi asilikali aku Malawi mmalo mothamangitsa ntchona wa America ‘yu ali busy kukwela mahule ku Chigwili. This is a rotten country. They say we r peace loving bt ash we r very sleepy no wonder politicians feed us garbage.

  4. Few good men says:

    Mutharikas cant make good leaders.

  5. Clement says:

    It’s Joyce spoiled our economy and it doesn’t need explanations. Mr H Kachaje, that’s the way we talk to another if we want someone to pay attention not chakwera and other failed politicians are doing. We want those who called themselves economists to come forward with solution to fix our economy. There is no need to be silent like you are watching Arsenal Manchester Utd game then put blame to the govt.

  6. njala chithambo says:

    I feel we have old and very dull economist how could a country full of water from Songwe to Nsanje be food insufficient, which University did the so called president of Ecama, Presidential Adviser did go.

    I feel Malawi is not poor but our readers make poors decisions especially when it comes to resource allocation. please hire for free advice

  7. Yankho says:

    Collins I remember you used to stand by the poor and that time you sided with the poor. You groomed Mabvuto to be one of the ren owed advocate , that time you were working with MEJN. But look now you are both foolish and vwry stupid, mwina chimene chatsala ndi kumangokwera mahule ndi kuvina ndi mahule you have completely forgotten that at one time you sided with the poor. Mulungu akukuonani

  8. segerege says:

    Do we people remember how our economy was before JB took over from Bingu? a malawi tisamalankhule ngati ana. pamene bingu amamwalira dziko lino zonse zofunikira zitasowa muno. mdzimayi anathamanga thamanga nkudzibwezeretsa. a ndale omwe ali mu cash gate ambiri mwaiwo anali a DPP. Atangotisiya Bingu onse anathawira kwa JB kuti akapitilize ntchito zawo zonyansa. JB anawamanga.
    Iwe Magalasi nena zoona. DPP inaononga dziko nthawi ya bingu nkubwera JB kudzakonza nkubweranso. DPP kudzapitiliza kuononga.

  9. Kingsley Jika says:

    A few days ago I heard this Magalasi man on MBC TV explaining gvt efforts to turn things around. For me, he’s one those few guys who know to speak in a language we all can follow. Honestly, we’re at a point where we must call reason to duty, take politics out of it all & discuss with open mind what role each one of must play to heal this land. He talked about this year’s floods & how that they struck where it pained most. On the other hand, Kachaje has been instrumental in calling each one to understand the situation & learn the power of continuity, sacrifice & togetherness. I think the approach Magalasi, Kachaje, DD Phiri take should help us reason & walk the talk & cease blaming one person for the problems. Policy realisation takes time. I think some patience to our leadership should be in order. We are at a point where we can make a choice to rise together or fall together as fools. This is our country; GOD gave it us. If we have issues with anybody, let’s use a spirit of humility to discuss issues without being forgetful that we are called to respect & pray for those in authority. We only have ONE wonderful Malawi, sweet home, the land we call home.

  10. chakhalira says:

    I understand Magalasi is the Chief Economic Adviser wa APM and he is also in the band wagon of blaming the PP government Cash gate. What sense and solution will this give to Malawians? If the Economists has nothing to advise APM on the way forward, why not say it to the President that he has no idea as to how solve these problem? Tililabe za Cash Gate ya PP mpaka liti? Mumatengeranji udindo oti si muutha? In any case I thought we were hearing of MK12Billion ya PP Cash Gate and we also hear of MK577 Billion ya DPP. Therefore mukamati chifukwa cha PP’s Cash Gate, What really do you want to say to Malawians? are you able to bring Malawi Economy on Track or NOT?

    Now my beloved ECAMA President nanunso tanenani zowona. Do you see this government doing anything in the short term to correct this economy? What about in the long run? What really do you think they should do? Tell them what you as an Economist think would help this government move forward. Kuti ifenso lay men should be able to see kuti palibepo zo thandiza a Malawi apa kapena zilipo. Chonsecho anatenga the whole village to the UNGA. Tell us something that can be understood by a lay man about this economy monster.

    A Malawi tikuvutika zedi makosana except for those boot lickers.

  11. CHINJOKA says:

    Muuzeni sava m’kunkhu uyu akapitiliza makani map to ake ikhala kadya kalista again.

  12. Captain Mediocrity says:

    See comment below for proof that ignorance is a synonym for being Malawian these days….smh

  13. mtate mike rsa says:

    The economy will normalise as long as we change the leadership,u recall verywell the time bingu diedJoice Banda took the government from sclashes she started rebuild our country fo only 5 month fuel,forex was everywhere in the hospital we used to eat 3-4times per day but the so called professors aaaa!! Kumangokoza pagona basi mutu ngati tombolombo

  14. Benford says:

    Mr K please don’t tell us about PP government, was gone for good and DPP is in control fix the economy, bansi, PP must not be your excuse,that must be the last we don’t want any body from this government to blame PP, now we are not in campaign for election.

  15. chechipapwiche says:

    You have done the first step; that is accepting that our economy is in bad shape. The nest step is to find out why. My advice is do not be afraid to say the truth. Am saying so because most of us are intoxicated with politics. We know the truth about something and yet don’t have the courage to mention it or point it out. If we are too economic with the truth, we will never move forward.

  16. Khodoba says:

    Fixing needs fixers and Malawi does not have them in govt the last time I checked

  17. kasha kalonga says:

    Mr k,what are there that we produced?,what is that can attribute our economy stability?and you saying that Malawi must go to the drawing board and fix.ok me I was thinking kuti your are at the government dowing this job on behalf of poor Malawian out there,now you telling us this or your there eating money for poor people.

Comments are closed.