Private sector pour cold water on Malawi’s budget: Nothing on electricity

Malawi Chambers of Commerce and Industry (MCCI) chief executive officer Chancellor Kaferapanjira has described 2018/19 financial blueprint which has been pegged at K1.5 trillion as a financial plan  that will not translate into any gains for poor Malawians.

Chancellor Kaferapanjira :Budget does not inspire economic growth

In an interview, Kaferapanjira said the budget is the emptiest finance minister Goodall Gondwe has ever presented in his career as the nation’s purse keeper.

“The budget has nothing on electricity, this is a great joke,” he said.

Kaferapanjira accused the government of disregarding the private sector because of its failure to have a budget on the power improvement, saying it is less inspiring for the growth of the private sector which is key for economic growth.

“We have been complaining about electricity and there was literally nothing said about what government is going to do about electricity. You will recall that the minister said what government is working on will only come into reality in 2021. Who will wait up to 2021 when we know that businesses are shrinking due to lack of electricity and there is no immediate attention to this?” wondered Kaferapanjira.

He also faulted Gondwe over his decision to stop giving tax incentives to companies.

Among others things, Gondwe said the government intends to reverse tax incentives that it had given to spur investments in the country.

He said customs procedure codes will be amended to include a provision requiring full payment of taxes from change of the intended purpose that made the project qualify for the tax concession.

“Overtime, government has been putting in place targeted tax exemptions to manufacturers but these concessions have not trickled down to the local masses through reduced prices.

“In this regard, government will review the tax concessions that were granted to these companies and will reverse the earlier decision to grant them the concessions,” Gondwe said.

He added that some companies that have not been remitting taxes to the Malawi Revenue Authority (MRA), and that the taxes have grown in excess of K400 billion.

Reacting to the development, Kaferapanjira said the move is an indication that the government does not consider the business sector.

“The minister, and whoever he represents does not care about what happens to business. They only care about other sectors of the economy because, when you are given exemptions for a specific period, the idea is that you should reduce your production costs.

“In fact, the minister is creating uncertainty. Some businesses make investments because the cost of investing has been reduced. If the incentives were not there, they would not have invested in the first place and they (government) provide this because the cost of setting up a business is very high. Now you cannot change a decision midway and that’s what government has done,” Kaferapanjira said.

Budget and Finance Committee of Parliament chairperson Rhino Chiphiko bemoaned the fact that government has allocated funds to institutions and activities that don’t generate growth or development to the country.

 

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Heavy-duty
Guest
Heavy-duty

A Chitsiru a Kapenapanjira wa. How can one demonize the whole budget because of one issue. Osachita appreciate mbali za bwino and accuse or advise kumene si kuti bwino ko bwanji? One I have no respect or sympathy for envy people.

#DzukaniAmalawi
Guest
#DzukaniAmalawi

Do Malawians really expect the very politicians who brought about the country pathetic situation to come up with solutions? Keep dreaming. The same budget that was tabled in 2019 by Gondwe is the same one that is being table today by the same Gondwe bar a few minor changes. Mr Gondwe has run out of steam and has no idea how to crank the Malawi economy back to life. The “walking dead” politicians are steering a ship full of half-asleep passengers. We Malawians are just dead people who don’t know active politics; we are just too passive to hold those… Read more »

psyuta
Guest
psyuta

kkkkkkk !!! Musaiwale guys kuti Rev. Chakwera anaporomesa a Kafela panjila uminister of Finance. Akhala choncho !!!!

Fact
Guest
Fact

They can’t say anything on Electricity because that’s where they are siphoning money for campaign purposes.Shame Shame

Khongoni Kammyala
Guest

Chancellor Mudzafera panjira- He seems to be the Life CEO of MCCCI! This guy says he is an economist! which he studied at Poly- He was at MIPA-Failed badly- The trade Fiar ground he manages-Very poor!He drives 4×4 8 cylinder Toyota Hilux- Lives a life a luxury- The private sector pays their subscriptions- He fires the key people around him! He speaks like an Economist! He has never been one nor did he do any 4 year coursework in Economics! The gentleman wants to be an MP- No wonder he froths politics! He has organised International Trade Fair for over… Read more »

Chilungamo
Guest
Chilungamo

It is this numbskull naive thinking that retards our progress. Foolish old mentality that only experts in a particular field should be appointed ministers. Or that people with fancy degrees automatically perform well at work. Results matter at work these days!!!
On the contrary our experience in Malawi does not support such crazy notion. With same ‘ TOP BOTCH’ ministers we are now the poorest nation on earth by IMF standards. To hell with FOOLISH naive assumptions!
SHAME on thieves!!!

Honara
Guest
Honara

Koma guys what can you expect from somebody who is already dead and wafera pa road? Doesn’t he know that there is a multiplier effect in the budget such that the private sector will benefit? A che Kafera pa Road who doesn’t know that you are an MCP oparative? Anthu okuda ntima ngati tambwala wakwida inu. Nkumazikwata ndi chala kuti mudzalamulira mutagulitsa chipani kwa Mia ndi anyapapi anzake a PP. Nzeru zimenezo?

Ndendeuli
Guest
Ndendeuli

Kodi this Chancellor College Kaferapanjira bwanji samakhala minister of finance adzatipatse budget yomwe tonse tidzavomerezane nayo?

Msundu
Guest
Msundu

Thats what an 83 year old man can present to the nation

Kibaki
Guest
Kibaki

Komadi eeeeee nothing has been said electricity. Shaaaa!!! my Malawi. We only hope for 2019

Northerner
Guest
Northerner

Government can not budget for ESCOM, ESCOM makes money, we pay for electricity and that money does not go to Government.

pathfinder
Guest
pathfinder

Wow! wow i like your view of point buddy. Teach the MCP bootylickers some senses, especially Chakwera and kaferapsnjila. mwina akanakhala wanzeru zakanafera pa njira. akanakafika pa ulendowu.

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