National Bank predicts gloomy future for Malawi economy

National Bank of Malawi (NBM), the biggest commercial bank by assets say Malawians should brace for the tougher times for Malawi’s economy in the coming months due to high inflation, high interest rates and a depreciating kwacha.

Finance Minister Gondwe: Gloomy outlook

Finance Minister Gondwe: Gloomy outlook

It its lasted unaudited interim results released this week, the bank says the depreciating kwacha and food prices are likely to influence the rate of inflation.

“Rising food costs and a depreciating currency are expected to reverse the recent downward trend in inflation,” reads the statement, in part.

It says NBM in the statement:  “The looming food shortages will only heighten speculation and continue to push up food prices.”

The NBM says the aid freeze by Malawi’s donors in the wake the cashgate continues to force government into domestic borrowing to fill the gap, thereby exerting pressure on interest rates.

Malawi’s inflation was recorded at 21.3 percent in June 2015 up from 19.5 percent in May as pressure mounted on food prices.

Local economists also say the depreciation of the local currency the Kwacha against major foreign currencies would likely result in sharp increase in prices of commodities on the market.

Figures from various local commercial banks show the Kwacha dropped by an average of 10 percent in July alone.

Within the month, the currency dropped 11.1 percent against the US dollar and 12 percent against the Euro. It also dropped by 11.5 to a British Pound and 8.2 percent to the South African Rand.

Country representative for the International Money Fund Geoffrey Oestreicher told a local daily last week that he was “surprised” with the steep fall of the Kwacha “despite the country sitting on high levels of foreign reserves than last year.”

Recently, Minister of Finance and Economic Planning Development Goodall Gondwe conceded that the country is going through turbulent times.

Speaking during a breakfast meeting organised by the Association of Early Childhood Development in Malawi (AECDM) to lobby for more funds towards early childhood development, last Wednesday, Gondwe said the economy is in “bad” shape.

An economic observer told Nyasa Times that although DPP had “rigged the May20, 2014 election, it will not be able to rig the economy”.

He observed that the majority of the country’s leadership was more interested in political expediency rather than pragmatic bread and butter issues.

To restore Malawi’s position on a positive economic growth path, he suggested an investment is needed which calls first for investor confidence and security.

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52 thoughts on “National Bank predicts gloomy future for Malawi economy”

  1. Fwe fwe fwe says:

    This guy called Goodall must resign. He was bright when he was a young guy. At 75+ , he cannnot perform. This is generation is for the young.

  2. shadrecks says:

    Ngakhale zinthu sizili bwino komabe sibwino kumangoyankhula zopanda pake.let’s just unit and see the way forward. Inflation is not strange thing almost to everyone. Let talk about solutions on this problem not pointing fingers or politics.

  3. Muhekere wa Muhekere says:

    DPP disaster perpetuated panickly.

  4. dwambazi says:

    We are a rich country remember? Mathanyula told us that we rich, we are next to the super power, our roads are paved with Gold, Businesses are booming, foreign investors are dying to invest in Malawi, our military and police force are second to none……. we are rich! no one goes to bed hungry, our education and health care systems are first class …… we are rich……. the future is bright,,,….f

  5. anadimba says:

    ati anavotera chimanga anthu akumudzi, koma akugona ndi njala.kumvetsa chisoniamalawi ????koma munavoterayo maphwando ndi daily.hedeeeee.mkadzi wake ndi uyu anadya za odwalayu.mai wopha anthuyu.pano amavala timamini skirt ati kudyelera.anthu nkumawavinira.hedeee iwoakugeya sausage.iwe uli ndinjala.

  6. Chikopa says:

    I am extremely saddened by comments from Malawians in diaspora who are busy shaming the country instead of assisting the country in whatever form they can. Kwa eni kulibe mkuwe, kwanu nkwanu mnthengo mudalaka njoka. Kumene muliko ndinu “Amtumba”. Kodi mumawatumizira Mayi Wanu ndalama? If that was the case then Malawi would have more forex? Nanga mukumanga nyumba kuno ku Malawi? Sibwenzi forex itabwera kuno? Kodi munasunga ndalama za maliro anu kuno kuti tidzalandire mtembo wanu kuno osati kuvutitsa ife opanda kanthu kale? If you could have been doing that Malawi would not have been poor. Think again.

  7. Cash Gate says:

    kunena zowona bora amayi, awawa ndiye zawakanika, shame on them

  8. Chavula says:

    Zintharika 23: 20,21

    Usange boma ili likulutilira na kutemwa mapwevupwevu tiwonenge ivyo vikuyowoyeka pa Zinthalika. Tivwale zikhole

  9. Limbanazo says:

    Why should we point fingers at each other?things started messing up long time ago.why can’t we unite and see the way forward??these political issues will not lead us anywhere.

  10. Alungwana says:

    This is National Bank and not Z Allan Ntata or Dr Laz. Any word from Kaliati or Nankhumwa?

  11. zonse ndi nthawi says:

    Number 9 ndiwe mbuzi ,tikagula kalikonse kuli msonkho,ndalama za malipilo ku ntchito kuli msonkho, cholinga kuti ndalama zimenezi zigwire ntchito yotukula miyoyo yathu osati kuti MUNTHALIKA ndi DPP aziba ayi.

  12. What good tiding can come to nyasalandi.our neighbour zambia ,tz,zim have progressed fast.iwe malawi iwe unatembeleledwa. adzakuchose tembelero ndi ndani iwe nyasa.little wonder they want to robe u of lifeline lake nyasa.take stoke of u and see where u have gone amiss

  13. We all blame wrong people.to my understanding WE SHOULD BLAME THE ELECTROL COMMISSSION.because people out there sometimes do VOTE for proper people who really can help.BUT THE COMMISSION instead do take bribes and those greedy politicians rules.finally we find ourselves in these potholes.

  14. Ndatopa ndi khani zakumalawizi abale siku ndi siku mavuto mpakana mutipangisa kuchona ku RSA kunotu apa ndiye sindi ngayelekeze kuponda kumalawi malawi watha bwanji osangoyaba kugwilisa ntcchito $usa dor

  15. Anthony says:

    DPP in action, they did it in 2012 by ruining the already week economy of our country, they will possibly do it this time. One word for DPP, #failures .

  16. Nkalapwaga says:

    pompano sugar ndi mafuta ziyambanso kusowa.Boma la Anguruli loo!

  17. Jk says:

    Amalawi tulo kwenikweni inu amene munavotera pitara ameneyo ankangofuna kukwanilisa zomwe bingu ankafuna anthuwa anaba ndalama zambiri m’boma amenewo ndiye akuluakulu acashgate ndipo amalawi mulira simunati donors please dont release your funds let them suffer next time they will choose wise who to vote .

  18. The real ujeni says:

    When DPP where in opposition they castigated PP as being clueless, Peter Mutharika went on the stand and shouted that the economy was a complete mess, and that only him and DPP can correct the mess. One year and some months on, the economy which was in good health is now taking a serious battering.

  19. chimwemwe says:

    Goodall, Chuka and RBM are ones responsible for devaluation of Malawi kwacha allowing exporters to keep 100% of the export proceeds, these exportes Limbe leaf JTI africa leaf are all hoarding forex at the expense of poor malawians, since this law was introduced there is no forex in the market why are they failing to reverse to 60/40 ratio kapena agwirsana katengale ndi ma exporters

  20. Sir Gift Sapanga says:

    kkkkk! following comments 4m abroad, malawi wamaphwevupwevu koma nyasaland usatheka iwe?

  21. Jang'ala says:

    Donors r busy helping Syria en Iraq who r fightin terrorists in their Countries( Islamic States)

  22. Tcheso man says:

    It is really laughable to note that it is the same DPP that went out flat to criticise the JB government for devaluing the Kwacha. They are now on the driving seat and are shamelessly devaluing the local currency with a lame excuse of pleasing tobacco farmers. Zimakhweka nzako akamayendesa sitima!!

  23. Edwin Maso Kayuni says:

    Vuto longosankhapo ndilimenelo mpakana Mapwevupwevu Bikilon kukhala pulezident ndiye zimenezo tiyenazoni! Apa Kaliati sakuwonapo vuto ndiye alomwewo.

  24. Henry Vegas says:

    to u mr president and your cabinet, u guys u were power hungiry not about wat pple want, now u r talking about enconomy crissis i thought it was your goal to erudicate that. U said u want to attract donors to invest in the country and u r buzy blaming the past gvt, remember there no future in the past why dont you focus on making future lather than creating another mess that its impossible to get out. Think about poor pple in villages before u start making your dicissions

  25. mapapaya says:

    Tatchulani anakuberani ma voti angati ndiwauze akubwenzereni kuti nkhaniyi ithe.

  26. Achitauni says:

    Paja National Bank ndi ya MCP? Sikukondwa ndi DPP

  27. Y r donors not coming if the dpp bunch of politicians are clean. 2019 vote wisely

  28. Chakhulukwenda says:

    The economy calls for a federal system so that we localize the stealing.

  29. Inu says:

    The sad thing about all this is that we are trying so much to politicize issues. The problem is that by doing so we will not solve a single thing. The tough times are supposed to teach us to think. As a country surely we became so dependent on donors that we could afford to steal from government coffers since it was just free money. Producing our own with hard labour may probably teach us to be accountable. As the tough times row in, probably the citizens will take their active apart to hold those in office accountable. We should not only look at political offices but at every level, the headmaster at a particular school, that pharmacist, those responsible for LDF and so on.

    MALAWIANS, IF YOU DO NOT KNOW THIS, TIME FOR POLITICS IS OVER. WE ARE FAILING TO MOVE ON BECAUSE WE ARE SO MUCH OBSCESSED WITH POLITICS. LET US THINK AND SOLVE THE PROBLEMS THAT OUR COUNTRY IS GOING THROUGH

  30. Kwalewera Zinyemba says:

    Is the National Bank comprised of experts? Is there focus real. If it is iam happy that it has not come from the hated opposition parties, who when doing what they are meant to do are labeled alk sorts of names. Why Malawi!!!! Why my country. Have thrown sanity to the dogs? Let those who explain government pilicies come now and explain what is happening. Givernment should not use the privilege of the natiinal media to cheat the largely illiterate Malawians. There is God in heaven who sees every thing even those things done in the dark.

  31. Gulugufe says:

    The thieving banks like National Bank are responsible for what they are saying we should brace for!

    Fuck them!

  32. Achimidzimidzi says:

    Iwe GOODAL GONDWE @ 3 you must be stupid. You want NBM to hid information from their customers for the sake of politics. This statement is an expection so its up to the wise to manage their affairs.
    Well done NBM, you have told in advance,after all the indicators are there.

    Banking is not politics.

  33. Kakha Erutu says:

    Nonse amene mukuda nkhawa, chonde dekhani. Ife a DPP tikukonza zonse. Vuto ndi loti nonse amene mukudandaula maso any akutidwa ndi kaduka. Zabwino zonse zikuchitikazi simuziona olo pang’ono. SHAME!!!☹

    1. Edwin Maso Kayuni says:

      Ziti?

  34. Kanthu Ako!! says:

    Most economies in this world have been through tough times of recent, What is so special about Malawi that its people expect others to give them money so they do not experience tough times like everyone else?

    Look at Greece! they they do not want austerity measures, they are crying.

    There is no such thing as a “FREE LUNCH”

  35. Tomato says:

    If the government stop stealing the money things will start going on well,apresedent must be thinking about people not about himself,so stop stealing the money

  36. IJABU says:

    its written on the walls in black and whites even the dogs in the villages r aware of this.poor country shaning donors haaaaaaa mupenga

  37. Trevor Manyi says:

    577 BILLION woyeeee

  38. Zanga Phe Basi says:

    Goodall Gondwe remember we are entitled to knowing what is happening in our country whether politically, socially etc.

    NBM has not goofed at all. U rigged elections why cant u rig economy?

  39. Dr Mbewe says:

    Dpp is full of thieves. I wish to agree with Prof Downwood Chirwa peter is no professorial material. Economy ikukanika koma kuba mavoti. A chilima osaberanso donor confidence bwanji?. Ruling a country entails developing a country. A vumbwe awa zinthu zikukanika.

  40. MIKE (mchewa weniweni) says:

    Thats it, in zambia the economy is better now. why malawi??? the reason is obvious, no economic agenda…utsogoleri opanda masomphenya….

  41. Tili Chenene says:

    Only Goodall and govt can carelessly tell Malawians that there will be growth in economy this year. Ask how? No answer. These guys!!!!! Old is not usually good enough

  42. Du wa Mwa says:

    DPP alibe nzeru. Ndipo chodziwa iwo nkutukwana basi.

  43. it’s been a year and a couple of some solid months. Kabwira started with loud frustrated comments, thanks she realised that she can’t be noisy until today and 4 more years. At least she took a break and she saved it until january 2019.
    Kapito just yesterday spoke the same, “why would someone start talking of rating someone within a year” He spoke saying “we give them time to perform and we’ll judge them with their work.

    Ayi anabera, ayi they rigged! What?
    Do you think its easy to rig?
    It failed someone who had all the resources at their disposal. So you can think someone from out can rig? Mulibe mzeru makosana!!!

    Instead of thinking something creatively so that you can sustain your families you are busy commenting on trivia. How can you develop like that? Mind you! Your house is poor but not mine. And not all are thinking poorly like you. Not the president will come into your house and give you a peace of development. You wake to work please malawi. Development starts with a family and work for your family man. Zoti anabera zikukusaukitsani, open your hands and arms to work. Shut your mouth and zip it: see how you are going to profit from your work of your hands not your mouth. Anzanu anabvomera kale kuti analuza mwatsala mbuzi zinanu kukakamira zopanda pake.

  44. tim says:

    Agalu achabe chabe inu boma ra anthu okalamba

  45. Ndizimene tinavotera says:

    Donors have negative altitude to wards the Mthalikas such that its very difficult to stabilise the economy. The k92 billion theft is still paining

  46. Charter says:

    Over a year after you stole the election you cant fix the economy? Are you still blaming the Banda admin? Obama started accepting responsibility for the US economy just 100 days in office in his first term. The economy has turned around. Tiye nazoni, kumangofuna mavoti basi! Gwirani ntchito che economic engineer!!!

  47. kesterchipala says:

    Iwo mmene amabera inu munali kuti.Asiyeniazilamula olo atabwera Mzungu zinthu sizingasinthe zikoli ndilosauka tikudalira Ku pempha.Ena inu mumasangalala ngati zinthu sizikuyenda bwino mmalo modandaula.

  48. captain says:

    I like this u cant rig the economy though u rigged the elections

  49. GOODAL GONDWE says:

    It is careless statements like these from NBM that heighten speculation and panic hoarding of forex and maize by speculators

  50. angoni apaphata says:

    They want to steal the forex in the reserves

  51. Zoonazake says:

    Adabera mavoti abelenso donor confidence. Avumbwe achabechabe. Mukhaura mumayesa udolo

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