President Peter Mutharika has told the Reserve Bank of Malawi to ensure that the Exchange Contol Act is in place to avert the externalization of the forex which he said is harming the economy.
Mutharika said this in Mzuzu when he opened the Reserve Bank of Malawi branch in Mzuzu.
“We need to deal with the forex externalization once and for all. The Exchange and Control Act must be amended to reflect this,” said Mutharika.
Mutharika said with the current situation, the economy of Malawi which is in peril, cannot improve.
“We need to think big and grow big for our nation to develop,” said the President.
He asked the Malawi Revenue Authority and other interested parties to work with the central bank as a matter of urgency if Malawi is to promote a thriving investment climate.
“Malawians spend the whole day in some of these banks when the Reserve Bank can supervise them and save our precious time. In some countries, they can close down a bank branch that is failing to serve people in time. Reserve Bank of Malawi, you have more work to do! As a country, we are not as poor as we think. This country is not poor. We make enough money. This country is losing a lot of money in forex externalisation. We are losing more money than the aid we need from anywhere. We must hurry to arrest and slay this monster of forex externalisation once.
“As we plan to become a big economy, we need laws that bite and a regulatory framework that firmly secures our financial borders. We need to secure what we already have. Therefore, I expect
Reserve Bank to speed up your team with Treasury, Malawi Revenue Authority and other players dealing with forex externalisation. As we open this new branch, I want to challenge the Reserve Bank to open a new chapter,” he pointed out.
He, however, noted that some of the regulatory framework that guides the sector needs substantial changes owing to the changing dynamics of the global industry.
“But we cannot progress with an Exchange Control Act that is older than our democracy. Most of our laws were made when we were thinking small as a nation. Reform your policies and services with urgency! You are in the driving seat of our financial sector. Every Malawian expects you to overhaul the financial sector for us to transform the business environment.
“Let us create a financial sector that promotes and supports a thriving investment environment. In the last two years, we have been developing different programmes, strategies and changing the policies and laws that govern direct investment. We need a financial sector that fully speaks to our direct investment programme.”
President Mutharika also noted that with every peg in the right hole in the financial sector, Malawi has all the potential to attract huge foreign direct investment (FDI) that will in turn transform
livelihoods in great measure.
“Direct Investment is a key programme that is bound to change Malawi forever. As most of you know, Direct Investment can take Malawi from being a poor third world country to a
rich first world country,” he noted.
He said the government was working in the right direction to reduce poverty in the country.Follow and Subscribe Nyasa TV :