Malawi govt claims greater forex, import cover: Economic growth

Malawi  government has said it has registered tremendous improvement in the official and private foreign reserves translating into greater import cover as never seen before in the country’s history.

Nankhumwa (left) with Finance and Economic development ministre Goodall Gondwe

Nankhumwa (left) with Finance and Economic development ministre Goodall Gondwe

Government spokesman Kondwani Nankhumwa, who is also Minister of Information, he official foreign reserves are at USD646.26 million translating into an import cover of 3.38 months and the private sector official foreign reserves are at USD325.94 million translating into an import cover of 1.71 months.

Cumulatively, it means the country has a total of USD972.16 million in foreign reserves translating into an import cover of 5.1 months.

“It is worth pointing out that this has never happened before in Malawi’s history. It is the first time for the country to hit such levels of reserves and import cover even at the highest periods of good economic growth” Nankhuma said  in a statement.

Government has also advised the general public to prudently use forex on activities that will help grow the reserves.

Kwacha gains

Malawi’s Finance, Economic Planning and Development Minister Goodall Gondwe also said recently that  he is delighted with the current appreciation of the kwacha against other major international currencies, especially the US dollar.

“I did say that in two weeks time, we are going to have a stabilised exchange rate and [everyone] was thinking that I must have been dreaming.

“In fact, within one week, stabilisation took place. I am happy that the free depreciation that we were experiencing at that time was halted and so, I am happy indeed,” Gondwe was quoted by The Nation.

A sharp fall in the value of the kwacha in September last year, was one major economic highlight of the local currency as it sent shivers to local importers and manufacturers who were left with no choice, but to raise more to finance their import demands.

The currency traded as high as K520 in some authorised dealer banks (ADBs), a 33 percent sharp fall from a rate of K390 in August last year.

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dyton chiwaya
Guest

Bravo ! But this appreciation should translate into financial realities of people in the village. By the way where is the mining hype after the first airborne survey. Let’s go for it to further improve the economy

Nkhwatakwata
Guest
86, when Goodall was finance minister under Bingu administration the economy performed very well, but surprising Bingu fired him. In the wake of what happed one can speculate that Bingu wanted (1) to embezzle public money, any wonder about K92 billion? (2) Bingu felt Goodall overshadowed his younger brother Peter whom he wanted to taker to run away from “prosecution” which he inflicted on Muluzi when he left office. Muluzi was right to say that Malawians have short memory, or is it lack of understanding issues? Elias Ngalande, the former Governor of the Reserve Bank, said that the economy of… Read more »
Alungwana
Guest

Yet prices are still high and there isnt any impact on a common Malawian. That is nothing to appreciate! Malawians are not stupid. Mutsitse fuel or else we will take you to court.

Kanyimbi
Guest

Nkhani yobweleka ndalama sichinthu chachilendo pa nkhani ya za chuma. Komanso maiko ngati USA akumabweleka ku maiko ngati China. Kungoti a Malawi muli ndi bvuto.

Nyapapi
Guest
Apparently the loan is not from Mota Engil but the PTA Bank. Borrowing for the sake of propping up the MWK is stupidity of the highest order, because this is just kicking the can down the road. We will still have to pay for this loan, at a high interest, later on. Kodi inu mungayendetse banja lanu ndi ndalama za katapila? Kenako sindiye kuti akulandani chili chonse ndi mkazi wanu yemwe? The solution should have been to let the MWK be determined by market forces, like JB did. This way senseless imports would be curbed. Goodall Gondwe likes to have… Read more »
Sabiti
Guest

This is the lean period inMw how come our kwacha is gaining value please economists give us an elaborate explaination not wat wi a hearing frm these failled ministers

chigawenga
Guest
Malawians please do not be hood-winked by this. Has anybody asked how the government got the import cover? I have said this before and I will say it again. Government is borrowing heavily outside the normal borrowing channels like IMF and the World bank. They are borrowing from what we call money lenders/payday loans providers at huge interest rates. What the government is doing is in fact mortgaging the future of our children. What would be interesting to know would be how much has the government borrowed from the lender Mota Engil? What are terms of the loan? I do… Read more »
osborné
Guest

These politicians are pathetic liers. So they think we don’t know economics? Borrowing money to improve import cover is economic growth? This is a short term solution and Malawians you can bless yourselves for another huge devaluation in future. This exactly what Goodall did during Bingu error and the we are suffering the constituencies now. Our trade is not balancing because of too much imports
For us to excel Malawians must reduce their appetite for imported goods otherwise this cosmetic economy will continue

mona
Guest

Tell the source of forex mwabweleka ku mota engil yo

mona
Guest

Tell the source of forex mwabweleka ku motayo

sd
Guest

Even atabweleka dollar its ok koz all corporations in the world hav 1 loan or another,wat is needed is to utilize that money as capital to realize profit.Its an achievement on its own for investors or banks to trust u&borrow u money . Let’s aplaud them

wpDiscuz

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