Malawi Kwacha appreciation manipulated: Chakwera blasts Mutharka’s zero economic common sense

As some commentators have argued that the true value of the kwacha is being distorted, leader of opposition in parliament, Dr Lazarus Chakwera has accused the Peter Mutharika government of “deception” on economy, saying the Kwacha currency appreciation is being manipulated.

Chakwera: If you want to know the status of the economy, ask people how they are suffering

Chakwera: If you want to know the status of the economy, ask people how they are suffering

Chakwera having a hand shake with 'babyseater' President Mutharika

Chakwera having a hand shake with ‘babyseater’ President Mutharika

Reserve Bank of Malawi (RBM) statistics show the kwacha continues to gain more ground against major convertibles, appreciating against all major international currencies.

But Chakwera on Wednesday in his address to parliament in response to President Peter Mutharika’s state of the nation address delivered on Tuesday, accused government of peddling lies, saying Malawians should not be taken for granted.

“There are those who will tell us that the recent appreciation of the kwacha and the rise in the import cover are a sign that the economy is doing well. Nothing can be further from the truth,” said Chakwera, adding: “After the free fall of the kwacha in the last half of 2014, it is a known fact that the government manipulated the kwacha in December last year to score cheap political points. “

Chakwera said the artificial appreciation of the Kwacha has hit hard the vast majority of Malawians who are in the agricultural who also happen to be the major foreign exchange earners for the country.

“We all know that farmers bought their inputs expensively at the peak of the kwacha depreciation, come the time to sell their produce, farmers are literally being robbed in broad day light under the force pretext that the kwacha has appreciated,” he pointed out.

Chakwera, who is also Malawi Congress Party (MCP) president, told parliament that poverty levels remain “unacceptably high” in Malawi trashing assertions by President Mutharika that Malawi economy is doing very well.

“I challenge our economic experts who are often at home making economic analysis from the comfort of their air conditioned offices in their high rise buildings to come down from their ivory towers to go to the villages and ask farmers in Namwera, Bolero, and Nambuma whether they are experiencing the so called improved economy,” said Chakwera, trashing Mutharika address which claimed economic mini-boom.

“.Lets us not lie to our people, this economy is not doing well,” said Chakwera, a former Assemblies of God church leader.

Commenting on the import cover, Chakwera said companies and individuals “due to the poor performance of the economy”, do not have the purchasing power to enable them to import raw materials for the industries hence the reduced capacity for private sector to produce.

“You can check with Malawi Revenue Authority statistics on the dwindling tax revenue collections which are below 50% of our unofficially projected MK900billion 2015/2016 budget,” he said.

The opposition leader said MRA under collection of taxes is a reflection that the country’s capacity to produce is not growing but declining.

“Has the improved import cover translated into improved quality of life for ordinary citizens? The answer is no! Are we seeing business booming as a result of improved import cover? Again the answer is a big no! We should not be carried away by this improved import cover talk,” said Chakwera.

He also trashed government plans to issue zero interest rate coupons “as if we are in Japan for private sector to provide financing to government to be repaid in 3 to 5 years with no interest.”

Commenting on Reserve Bank’s recent decision to maintain the base lending rate at 25 per cent, Chakwera described it as exorbitant and extortionist rates which cannot stimulate an economy.

Economics Association of Malawi (Ecama) president Henry Kachaje said Chakwera was spot on in his speech.
“ I think he is right. Maybe let us start measuring our economic growth and development by looking at the people on the ground instead of doing it on the computer Spreadsheet,” he commented.

The debate on the president’s speech in parliament continues and Finance Minister Goodall Gondwe is expected to present the national budget on Friday.

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Phodogoma
Guest
Leader of opposition why are you wasting time over economy of Malawi being manipulated. Do you know Gondwe? He is an economist who was recogized by world bank where the man was holding the highest with 50 white economists as his juniors. Gondwe understands the economic concepts better than anybody else. Remember for Bingu to tick it was due to Gondwe. Now Gondwe is just registering his economic tricks. Let him handle Malawi economy again. If Malawi gains its economy back to its expectation as it was during Bingu, then Chanco or Poly should recognize this old man Gondwe.He mus… Read more »
Phodogoma
Guest
Wopenga si Chakwera yekha ayi. Mulipo ambiri ngakhale iwenso Denguzman ndiwe wa ziwala m’maso ngati ankulo ako Abraham. Kukwera kwa mtengo wa mafuta sizikhuzana ndi chuma chaziko. Ngati dziko limakhala losakweza mtengo wamafuta pamene mtengo wamafuta wakwera padziko lonse ndiye kuti dzikolo sikugwiritsa ntchito automatic fuel pricing. Panopa fuel wakwera padziko lapansi. No way Malawi can survive with automatic fuel pricing mechanism without instant adjustment. Ndipo ngati Abraham angakhalankhule mopusa ngati m’mene walankhuliramo ndiye kuti Abraham ndiopengetsetsa zedi. Iweyo ndi Abrahamyo mukuona ngati a IMF aja ayamba kupereka ngongole ndi zithandizo aja ndi oputsa. Iweyo ndi Abraham wakoyo ndiye kuti… Read more »
Denguzman.
Guest

Amalawi, bwanji fufuzi zina zikumayankha ma comment ena oputsa against Chakwera. Mwina anthu ena simumatha kutsiyanitsa nkhani zandale ndi nkhani zokomera mtundu wa Malawi. Speech ya a Chakwera siyandale, inetu sindine wandale koma zandale ndi madzitsatira bwino. Zanazanali a Chakwera anena ku ndalama yathu ya kwacha siikuyenda bwino enanu mukuti Chakwera ndi wopenga. Lero pa 8th May fuel wakwera mtengo, nanga pakati pa Chakwera ndi boma ndindani amene akuuza mtundu wa Malawi zoona. Tikamatengera kutsangalatsa a President mu zinthu zoputsa dziko lathu silidzapita patsogolo.

Makaiko
Guest

Wopusa kwambiri iwe matako ako mbuzi

Denguzman.
Guest

Amalawi, bwanji fufuzi zina zikumayankha ma comment ena oputsa against Chakwera. Mwina anthu ena simumatha kutsiyanitsa nkhani zandale ndi nkhani zokomera mtundu wa Malawi. Speech ya a Chakwera siyandale, inetu sindine wandale koma zandale ndi madzitsatira bwino. Zanazanali a Chakwera anena ku ndalama yathu ya kwacha siikuyenda bwino enanu mukuti Chakwera ndi wopenga. Lero pa 8th May fuel wakwera mtengo, nanga pakati pa Chakwera ndi boma ndindani amene akuuza mtundu wa Malawi zoona. Tikamatengera kutsangalatsa a President mu zinthu zoputsa dziko lathu silidzapita patsogolo, kwainu amene ma sapota a DPP choti mudziwe ndi ichi kunjaku a Malawi akuwona.

Denguzman.
Guest
Amalawi, bwanji fufuzi zina zikumayankha ma comment ena oputsa against Chakwera. Mwina anthu ena simumatha kutsiyanitsa nkhani zandale ndi nkhani zokomera mtundu wa Malawi. Speech ya a Chakwera siyandale, inetu sindine wandale koma zandale ndi madzitsatira bwino. Zanazanali a Chakwera anena ku ndalama yathu ya kwacha siikuyenda bwino enanu mukuti Chakwera ndi wopenga. Lero pa 8th May fuel wakwera mtengo, nanga pakati pa Chakwera ndi boma ndindani amene akuuza mtundu wa Malawi zoona. Tikamatengera kutsangalatsa a President mu zinthu zoputsa dziko lathu silidzapita patsogolo, kwainu amene ma sapota a DPP muzipenya kutsogolo osamakomedwa ndi zinthu zopanda pake coz kunjaku a… Read more »
mlomwe2
Guest

WHICH INDICATORS CAN SHOW THAT KWACHA IS APPRECIATING????????????????????????????? PLEASE TELL ME. THERE IS SENSE IN CHAKWERA’S ARGUMENT.

Nyifwa-Ilenga
Guest

In all what peter said it is untrue that it can be 100% false. At least a 0.001% was to be awarded.

Truth pains, yes.
Guest
Malawi has been waiting for a such polite leader of opposition, bringing out facts and backing points not rubber stamping and praisings, Chakwera has hinted and EAM has agreed to Chakwera`s facts. DPP should not think that we are all sleeping, we are watching, we all know that some notable gurus paid huge billions to make kwacha look appreciating, we all know that, cheap politics to gain confidence will not work this time, you cheated the elections yes, but this time you will not cheat again, bravo Chakwera, bravo opposition, we will fight until you will be mad again like… Read more »
chindele chakufikapo
Guest

The day will come when the north will rejoice.the seeds of segregation which you sowing will not gereminate at that time. Proud northener.com

Kondwani
Guest

Chakwera usadzapangenso mistake yotenga running mate wakumpoto. Bwezitu uli president lero pachipanda mistake imeneija. Take a southrner udzawina 2019.

supportorwaDpp
Guest
Akulu chimene mungadziwe ndi U president antha kukhala wina aliyense; Onse amene akhala u Prsident muno M’malawi muno sitimadziwa kuti atha kukhala a puluzident; Siyani kunyoza; Ndani amadziwa kuti Joyce angakhale President no body; Komanso mukamalakhula mudzimizera malovu osatha mau, Lero lomwe Fuel Wakwera IS that not a sign kuti ndalama yathu yagwa? Ndiye mudziti akunama bwanji wosavomera mau akakhala wokoma, Promisory Note Chuka Sanalembebe mpakana pano amuuza ndani wo posa Secretary Ku Treasury, Amangwetu be very Careful; Dzikoli pakali pano likulamulidwa ndi Crooks oti antha kutuma kukampha Alibino omwewo mkukhala woyambirira kukapepesa msanga ndikulira kwambirikwambiri mfiti imatero, Komanso anthu… Read more »

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