Malawi in meltdown: PAC presented with factbox of distressed economy

Malawi Confederation of Chambers of Commerce and Industry’s (MCCCI) chief executive officer  Chancellor Kaferapanjira has highlighted that Malawi is plunging into an economic meltdown and that the private sector is  in distress with the weakening of Kwacha currency, rising inflation and interest rate.

PAC conference on future of Malawi

PAC conference on future of Malawi

Chancellor Kaferapanjira - Malawi private sector in distress

Chancellor Kaferapanjira – Malawi private sector in distress

Kaferapanjira was speaking at major conference organised by quasi-religious grouping the Public Affairs Committee (PAC) is in Blantyre where a cross-section of Malawians is discussing the future of the country with is facing economic crisis.

Making a presentation on the Economic impact on the Business Community, the MCCCI boss accused the Peter Mutharika government’s borrowing, saying it has led to high interests rates; as a result, businesses are not growing.

He said inflation continued to rise and has now reached 25 percent, a calculation of unusual precision for an economy in chaos.

“Inflation rate is at 25%, somebody is stealing from your pocket. From your K1000, government gets K250,” Kaferapanjira said in his factbox showing how the economy has declined and the difficulties suffered by ordinary Malawians.

He also pointed out that Malawi Kwacha currency which has weakened to dollar almost $1 to K900 is virtually worthless.

Kaferapanjira criticised the country’s financial plan.

“We have a national budget that is not able to provide needs to the population, government seems not concerned,” he pointed out.

Kaferapanjira also dealt a big blow to government’s strategy to beckon foreign investors, when he noted that “Malawi has no conducive environment for business.”

He cited Escom increasing tariffs for electricity “yet load shedding everyday.”

Kaferapanjira also told the conference that government owes the sector “huge sums of money” but expect the same private sector to create jobs for citizens.

“Government has stolen a lot private sector. It is in distress, it doesn’t know which button to press,” said Kaferapanjira.

In his presentation, Finance Minister Goodall Gondwe admitted that the problems are high interest rates, volatile exchange rate and inflation.

“Kwacha was left to float,” he noted, adding: “We let market forces to control the kwacha, we do not have enough reserves to control inflation now.”

Said the Finance Minister: “Nobody, not even the President can control inflation and increase in interest rates.”

On accusations of borrowing, Gondwe said government has reduced from borrowing K25 billion a month to K4 billion a month.

“We are trying hard,” he said.

Making a presentation titled Economic Situation in Malawi, Economists Association of Malawi president; Henry Kachaje observed that there is growing inequality in Malawi due to policy choices, huge gap between the poor and the rich.

“Every President leaves office after depleting state resources; predecessors always say they have found nothing,” said Kachaje.

He said Malawi has “a single misfortune of elevating thieves to higher positions.”

Kachaje said another issue of concern is the way resources are used, so little spent on development, yet so much spent on consumption.

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what a shame
Guest
7 months 9 days ago

Mr what a shame tell me 3 names of personalities who can end Malawi’s economic problems. If you so wish , please include yourself.

Let me assure you that the countries problems are beyond finger pointing.

sailota wa sailota
Guest
7 months 10 days ago

Bwanawe Sailota, retiring all civil servants who want to retire is not the solution and after all government is not employing. By the way, where will govt get money to pay gratuities to those willing? You and me I guess have no solutions. Kabwila does not have either. Angobwebwetabwebweta basi garu ameneyu. We are in the last days. Jesus is coming soon and Malawi’s problems are one of the end time signs.

Sailota
Guest
Sailota
7 months 10 days ago

I have a solution on how to reduce the number of civil servants. Pliz allow those willing to retire after serving for atleast 10 years and pay them their terminal benefits asap. U will be surprised many will go for it.

Sailota
Guest
7 months 10 days ago

bravo kafelapanjila

What a Shame
Guest
What a Shame
7 months 10 days ago
Malawi hired a CEO to run this country. The CEO appoints ministers of his choice to help him run Malawi. In such a scenario, it simply means the CEO has failed. Not Malawians to him and his cabinet on solution advice. NO! NO! NO! When the Malawian National Football Team is losing, what do we do? Bring in a new coach. Not the new coach asking us what to do. The CEO has hires advisers to advise him on any issue pertaining to running govt. What else? The CEO of is a demanding job with big salary and benefits. Let… Read more »
malawi weniweni
Guest
malawi weniweni
7 months 10 days ago

Nothing new. Looking forward for solutions for these guys has managed to come up with.

BigMan
Guest
BigMan
7 months 10 days ago

PAC is a toothless useless talking shop. You might as well call it toastmasters. A bunch of old priests and corrupt unethical ngo clowns like Martha Kwataine mixed in with a few cluelesss politicians such as Jesse Kabwila are not going to come up with any strategy to change Malawi. Its all emotion and very little strategy. I bet they will even come up with a list of demands at the end of this useless meeting demanding that government fix the economy and drought in the next 30 days or face demonstrations!

Cry my beloved country!

madalitso
Guest
madalitso
7 months 10 days ago

Ndiye zithandiza chani mwanenazo. We need solutions, advise the goverment on what to do.

Cry for my Country
Guest
Cry for my Country
7 months 10 days ago
Unfortunately what PAC can not do is to reform this country. Look we are struggling to implement government reforms. The biggest issue leadership vacuum. Unfortunately this everywhere ministry level all the way to the top. Nothing gets done easily in our country. why we do not recruit on basis of performance but rather on rapport. The result is always no result. Our country is going no where at least I can say not in my lifetime. We will keep voting for fools, failures and/or thugs into higher office because we do not look at track records of results/deliverables of our… Read more »
Achimidizimidzi
Guest
Achimidizimidzi
7 months 10 days ago

At the end of this meeting, please come up with solutions and government should follow.

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