Malawi is booming, Mutharika says economy to attain full recovery

Malawi Pesident Peter Mutharika has told parliament that he is overseeing  economic boom that will soon transalate to a full circle of economic recovery for the country to achieve sustained inclusive growth and development.

President Mutharika with the Speaker Richard Msowoya

President Mutharika with the Speaker Richard Msowoya

President Mutharika with his minister of home affairs , Atupele Muluzi after opening the House

President Mutharika with his minister of home affairs , Atupele Muluzi after opening the House

Mutharika delivering a state of the nation address

Mutharika delivering a state of the nation address

The President told the House that the “sound macroeconomic policies” that his government has been implementing in the 2014/2015 financial year “have already started bearing positive results.”

He said the economy is projected to register a real GDP growth of 5.4 percent in 2015, despite setbacks such as recent floods and dry spells that have affected agricultural production.

“Going forward in 2016, the economy is projected to rebound with a strong growth of 6.5 percent,” Mutharika said.

Mutharika was speaking when he delivered a State of the Nation Address during the opening of the Budget Session of Parliament on Tuesday in the capital Lilongwe.

The Malawi leader said his administration will continue to design and implement sound macroeconomic policy reforms aimed at creating a stable macroeconomic environment for the private sector to thrive, with a view to transforming the economy to attain full recovery .

“ Fiscal and monetary policies will, therefore, seek to ensure that annual inflation remains low, stable and within single digits; reduce and eventually eliminate huge domestic borrowing; reduce balance-of-payments deficits; maintain a stable exchange rate; and achieve and maintain lower interest rates. The policies will ensure that the economy achieves and maintains high economic growth rates of at least 6 percent,” said Mutharika.

The Malawi leader pointed out that although the country’s current foreign exchange reserves “still remain lower than adequate” the foreign exchange reserves have” risen to more than 3 months of import cover.”

He said the increase in foreign exchange reserves has managed to “anchor the stability of the Kwacha” in 2015.

“Mr. Speaker, Sir, it is expected that foreign exchange reserves would continue to rise with the onset of the tobacco marketing season and the resumption of the International Monetary Fund (IMF) programme,” Mutharika said.

Mutharika said the economic boom is set to continue with annual average inflation expected to drop from 23.8 percent in 2014 to 16.4 percent in 2015.

“This is due to the combined effect of the stable exchange rate and a significant decline in global oil prices. It is projected that inflation will continue to be on a downward trend and will reach an annual average rate of 12 percent in 2016,” said Mutharika.

The President also informed parliament that his government successfully concluded negotiations with the International Monetary Fund (IMF) on the Extended Credit Facility (ECF) for the Fifth and sixth reviews in March, 2015.

“This resulted in the IMF’s approval of the completion of the Fifth and sixth reviews of Malawi’s economic performance under the programme supported by the ECF arrangement, as well as financing amounting to US$18.1 million for immediate disbursement.

“Mr. Speaker, Sir, the successful conclusion of the reviews and approval of the disbursements is expected to trigger disbursements from all other development partners, since this signals Government’s commitment to the macroeconomic programme,” the Head of State said in his address.

Mutharika said following the “cash-gate” corruption scandal, the contribution of donor support to the budget substantially declined from about 30 percent of the total resource envelope to less than 20 percent in the 2014/2015 fiscal year, saying the 2014/2015 budget has been largely financed by domestic resources.

He said in order to fill the revenue gap created by the deficit in donor financing, the Mutharika government intensified implementation of tax policy reforms aimed at improving the tax regime to reduce loopholes and improve on tax compliance and investor confidence.

Government, said Mutharika, has also embarked on a comprehensive review of the various tax legislations in order to improve on tax administration and encourage investment in the country, a process Mutharika said he expected to be completed by the end of the 2015/2016 fiscal year.

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34 thoughts on “Malawi is booming, Mutharika says economy to attain full recovery”

  1. Mphaka says:

    when are these promises going to be fulfilled?Ndi chani mwachita,kugwetsa nyumba mu bt zomwe ena adavutikira.Aaaa.Hypocrates!!!!

  2. tombolombo says:

    He must be leaving on planet mars.

  3. makiyolobasi says:

    Munthu akakhuta amaona ngati aliyense wakhutanso. Umu ndi mmene this man is thinking.

  4. kanundu says:

    Bangazi ukuonetsa chikhalidwe choipa chaku makolo ako. Ndipo ngati makolo akoko anamwalira achite nawe kanthu ukuchititsa manyazi mizimu ya mntundu onse akwanuko. Abale tiyeni tilemekezane popatsana ulemu kuti mizimu yakwathu tonse izisangalala ndi chikhalidwe chathu. Bangazi ndi bwino ndithu ukatukwanile kumene kuli mizimu ya makolo ako osati apa. Apa ndipotsana nzeru osati kutukwana kutsutsa pena kuyamikira basi.

  5. bentry smart says:

    zinamizanani kumeneko poti munazolowera zoputsa…..
    sitikuonapo kusintha ife oyaza…..

  6. mbwiye wapata says:

    Arthur,what have yo been smoking lately..whaever it is can i also have a little portion? You seem to have mastered the art o detaching yourself from reality…it can only be the effects of taking one too many pulls from the Nkhotakota green Gold.Now back to earth…your economy is on a one way vertical trip….and it is facing towards the sky..but the other way…You are hallucinating APM…Watch your Viagra dossage.

  7. nobel says:

    Let’s check the previous state of national address of 2014/15 if it isn’t the same. Copy and paste

  8. Tengupenya says:

    Analytics matter. These claims and forecasts need to be backed by transparent analyses. Short term fixes are just stop gap measures, very different from sustainable fixes. It is also an open secret that marketing season for agricultural produce has recently Ben coming with exchange rates that are punitive to farmer. Watch the same space during farming season. The cost of inputs will skyrocket. It is a rogue exchange rate regime favoring middlemen and banks at the expense of the farmers or producers. This is killing growth of the economy. There is no reward for producers, but pretty of it for middlemen and for the financial services. Innovation is needed to balance or stop the rogue exchange regime. If these areas like banking liberally traded internationally, then we might grow. Open currency trading with major trading partners and the neighbors might protect our production.

  9. Joseph Tembo says:

    The president has spoken. Lets all wait to see what he has promised. Our problem in Malawi is that we waste time kunyoza ma leaders athu other than supporting them for growth of our country economically.

    Olo inu mutakhalapo pa mpando uja opanda support from pple sizitheka. Lets all support Peter. He knows kuti chuma chavuta ma business sakuyenda. Kuli njala akudziwa. Siyani mwano pa social networt.

  10. Boka says:

    Economy booking were, in the ass?

  11. Atonkhwetonkhwe says:

    Dreaming as usual probably from his distorted handwriting where he can declare billions at will.Mukonganamizanapo apa.Anthu akudya udzu mumizi umu.Za zii.

  12. Atupele Keba says:

    Clueless and out of touch.

  13. Lets work together as Malawian to improve our economy. Thax mr Mr president

  14. Sad Huss Mthunzi-wa-Bowa says:

    If the economy is booming, why are people trecking to South Africa for greener pasture? I dont see anything that can show me that the economy is booming! We need a president who will know and say the truth about the country. What is it that they have done to improve the economy? We are selling tobacco and we have been doing this eversince Nyasaland came into being under the colonial rulers. Have we now started exporting finished goods other than agricultural raw materials — fodya, thonje, tea, — is this the booming of the economy????

    1. i don’t know if you know what the word boom mean and at all if you know booming

  15. Mnunkhaludzu says:

    Dziko la Malawi lili pa mavuto osaneneka ndithu..

  16. OGA MUST HEAR THIS says:

    Ndinatopa ndikuva ma storiz tell us thz zikuchitika osamango nama apa.

  17. eeish says:

    Dogs bark, the caravan moves on!!

  18. Phodogoma says:

    APM ndiye mutokwana masiku ano. Kuyima monyang’wa nthawi zonse Ayi takunyadirani madala.

  19. O.F.M says:

    Speech yolimbikitsa kwambiri.

  20. Dr. Godfrey Ganizani Mvuma says:

    “When the Leaders are leading, follows will follow”. It is not the case in Malawi. We have leadership crisis – we are led by people who are not visionary nor motivated to be stewards servants of the people who elect them into those positions. It is a pity, they sing the same song. Make Malawi to have agrarian revolution with value addition activities that would generate a lot of jobs. Malawi has great potential of being turned into a construction hub as it undertakes its developmental activities, but this should focus on human labour; not big machines. Employ more people where conveniently possible as you construct roads instead of utilizing huge bulldozers that destruct the environment. Kawuzyanga ni fwiti yayi; fwiti nitilinganenge.

  21. Mugonapamuhanya says:

    With the same leaders and politicians Alendo akulemera ife tikudikila kuti Pulezident adzatiike ndalama m’manja. Malawians are not only poor but sick in the head.

  22. Youn says:

    Abale chonde, tatukulaniko dzikoli mmalo momangodzichemerera zinthu za ziii! Kodi mumasangalala tikamathawa mdziko muno nkumakakhala akapolo ku Joni?

  23. Kadakwiza says:

    The economy is booming, it’s good news to hear. I don’t think it is time for Malawians to celebrate since unemployment is very high in our country. People need jobs Mr. President.

  24. chapathako says:

    Mtimwa ukuwawa

  25. Akatswiri says:

    Bwangazi why kutukwana.

  26. chatonda says:

    Stop kutukwana abale. This is not the time to be using obscene language in the media, Mwatani kodi inu a no 1? Shame on you for your brutality.

  27. Jozza says:

    The financial year is ending and the new 1 to start but when I look backwards I don’t see any tangible work done/started this year to develop MW apart from little assistance to flood victims and xenophobia victims which I bliv no one may need to be praised by such disaster work. Its high time pliz our arrogant leaders Develop MW, nafeso tione mtendere. We r not foreigners.

  28. Achimidzimidzi says:

    Is it acceptable to edit last year’s speech?? Maybe the date.

    Mr. Speaker, did you remember the request by UDF?

  29. Malawiana says:

    Maybe we have a different view of the word “boom”. Where unemployment is unmeasurable, poverty is skyrocketing, beggars on the streets are more than we have ever experiences, it is ironical to call that economy, assuming its an economy at all, to be experiencing a boom. But coming from a Professor who is prone to errors, this assessment does not come as a surprise.

  30. Malindima says:

    Mr President, there is nothing to smile about here if domestic production is always is always disturbed by Escom. No sound business can waste its capital investing in a country where power is disturbing production everyday. Zigayo zathu sizikugaya tsiku lonse popanda kutsokonekera laws magetsi.

  31. bwangazi says:

    Same old story here!!! Nothing new!!! Only idiots and cashgaters will clap hands! Stupid nonse kuthako kwanu

    1. Dum says:

      This guy”Bwangazi” must be of Sena or chewa tribe inmature people.

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