Cashgate soils Malawi reputation: Listed risky country for doing business
Malawi continues to lose its reputation on international scale after development partners withheld $150 million towards budget support following a financial scam known as cashgate that has led to arrest of many suspects among them, top politicians in the ruling People’s Party.
Governor of the Reserve Bank of Malawi, Charles Chuka says the International Banking System has now listed Malawi as a risky country to conduct business following the looting of over K20billion from government coffers.
“This means no access to bank credit, loans and all that regards to their business and investment in this country is going to slow down. So the issue is that we have lost the reputation as far as donor assistance in concerned, and now we cannot be trusted to run government finances,” he says.
Several donor nations including those under the Common Approach to Budget Support Bank (CABS) comprising International Monitory Fund and World Bank have withheld aid to Malawi in reaction to the cashgate scandal.
Chuka has therefore predicted bleak future for the country’s economic recovery in both short and medium terms.
He has also predicted high inflation and increase of prices for essential commodities such as fuel.
The Reserve Bank had earlier forecast an inflation rate of around 18 percent during the next six months but it has now revised the figure upwards to 23 percent.Follow and Subscribe Nyasa TV :