Gondwe says Malawi economy now stable: Opposition MCP tips on growth

Minister of Finance and Economic Planning Goodall Gondwe on Tuesday said government has achieved economic stability and they are doing everything possible in order to sustain a recovery in economic growth.

The delegates at the conference

Finance Minister Gondwe: We have achieved economic stability

Gondwe was speaking in Mangochi when he opened the Monetary Policy Conference.

He told delegates that there is lower inflation and an increase the purchasing power of the kwacha, Malawi’s currency which has been stable for some time now.

“We are doing it well and we will continue doing well,” the treasury Czar said.

You should be positive of your country. Yes, we may be poor but speak positively of your country,” he said.

Commenting on Gondwe remarks, Malawi Congress Party (MCP) spokesperson on financial matters Kusamba Dzonzi said there is need for government to do more so that what is said is really what is happening on the ground.

He said government need to address the weak fiscal environment by maintaining the upward trends in revenue mobilisation and coupling them with expenditure discipline.

Dzonzi said currently the effects of stable economy are not trickling down to people at the grassroots.

He said reducing rural poverty in Malawi will require among other elements; stabilise growth that is consistent and strong, raise the labour incomes of the poor by increasing the productivity of agriculture and facilitating movement into new, more remunerative nonfarm activities, give larger and well-directed transfers to the poor by reforming existing safety net programmes to help them to protect their incomes and assets against shocks.

Malawi is a predominantly agro-based and most farmers who produce our staple food live in rural areas

In his speech, Reserve Bank of Malawi Governor Daliso Kabambe said the conference is very crucial because it will allow stakeholders to deliberate on whether to cap interest rates.

Kabambe said RBM have been capping interest rates since 1987 and that they remain fixed.

He said that the economy has currently revitalised but he was quick to add that its fruits cannot be reaped now, saying it takes time for the people to benefit from the economy which is just stabilising.

The bank lending rates have reduced from 45% to 24% and this is not a mean achievement.

Some of high level people to speak at the conference include reserve bank governors Dr Denny Kalyalya from Zambia and Dr Patrick Njoroge from Kenya.

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Tizanka
Guest
Tizanka

A stable economy can not benefit Malawians because we are a socialist economy. You look at all these big shot CEOs with access to finances they can’t invest in nothing. We don’t have the brainpower to exploit such opportunities as low interest rates or low exchange rates. All we need is government is sort our shitts even mpaka ma donors atimangile mathoyazi. All we know is pulling each other down, we are like crabs in a barrel

Dr. Zulu
Guest
Dr. Zulu

@Heavyduty.Remember it is a rule that In discussing issues or a problems, we don’t attack people but issues at hand.

Attacking people instead of issues under discussion is a sign of you don’t have facts to present against the issue or problem at hand.

Let’s learn to respect each other!

Achiswe
Guest

Against sterling (GB Pound) the kwacha is worth less than 1p (one penny). In other words there are just under MK1000 to £1 sterling. The Malawi economy may very well have stabilized, but what is it worth? The average villager, who makes up most of the population, continues to struggle and lives from hand to mouth.

pathfinder
Guest
pathfinder

Idiot, it is worth to kwacha not bound. Leave our malawian kwacha alone, don’t mix it up with your british pound.

Alex
Guest
Alex

Achiswe has a point though @pathfinder

Mika Kumbire
Guest
Mika Kumbire

Who trades with Britain these days? South America, Africa, the Tiger economies of Asia, the Arab world trade with China, India, Brazil, and Asia. Keep your over prized pound and remain poor!!

#DzukaniAmalawi
Guest
#DzukaniAmalawi

Why do you have to use derogatory language to put your point across Pathfinder. Reserve the language for those who don’t possess persuasive skills. You come across to me as someone who’s educated and exposed but your foul language is betraying you. Just allow others to differ with your point of view and its ok to be right or wrong depending on which side of the mountain you’re from.

Bristol
Guest

It is undeniably true that the Kwacha is stable for some time now. Lets give credit to Government even if you don’t support APM

Old Timer
Guest
Old Timer

The most important people to speak at the conference should be villagers from Mhuju in the north, Chimbalanga in Central region and Chididi in the South. Those people would have told us the truth about the social and economic conditions they are in and not hear from local political and imported GM economists. At that Conference no one spoke for rural poor people. Academic presentations were made with quotes from some literature.

Awize
Guest
Awize

Even though I don’t support APM, but what Dr Gondwe is saying here is very true. The Malawi economy is gradually stabilizing. The only bad issue in Malawi is the worsening corruption which has now been institutionalized in most public sector entities. Corruption and fraud zanyanya m’dziko muno.

#DzukaniAmalawi
Guest
#DzukaniAmalawi

If all the economic data and statistics indicate that the economy is stabilised and in some cases improved; why is that it’s not filtering through to the ordinary man and woman in the street. who is benefitting from these impressive stats. Is it still the top 100 people in the country. Malawi inequality is getting worse by the day therefore the govt needs to work harder to reduce inequality and promote economic inclusion. The Gini index is probably the worst in the world.

Tizanka
Guest
Tizanka

You know why? Two million people are being productive to support 17 Million People including themselves. The day that we will decide to start working and. It pulling each other down we will make it

ndele
Guest
ndele

stupid old balls

Heavyduty
Guest
Heavyduty

Shallow minds, chicken or goat headed Ndere who knows nothing other than kunyoza. Iwe zoti Kwacha is now stable against other currencies sukuona. Afunse anthu amene amapita ku RSA kukaoda akuuza kufunika kwa stability ya Rand vs Kwacha mbuzi iwe.

Central
Guest
Central

Its you who is shallow! Do you understand what Kusamba said when he indicates that: government need to address the “weak fiscal environment” by maintaining upward trends in revenue mobilization and coupling them with expenditure disciplines”. Further do you agree that this is it fake because the effects of the so called stable economy are not trickling down to people at the grassroots.” You might give lame excuse like Kabambe’s but shamely Bingu’s efforts in 2004 -2009 still stand as testimony becoz many people started benefit right away and nobody could deny it. How many people amongst those who are… Read more »

Heavyduty
Guest
Heavyduty

I rarely respond to idiots like you. Do you plant maize and harvest right away? You have a Chicken brain.

Chilungamo
Guest
Chilungamo

Enawa ndi chabe typical bragging attitude ya azimbuyewo/ mazigogo a DPP sikuti amadzitsatanso kwambiri. Even ife ma ray persons in economics timadziwa ndithu kuti kusatsika mphavu kwa ndalama kumatengeranso mphamvu ya dollar pa international market. Dollar yakhala yosakhazikika pakatipa kwambirii, nchifukwa chake ndalama za maiko ambiri kuphatikiza Malawi (kwacha), South Africa (Rand) have seemingly gained value and shown cosmetic (fake) stability. Not necessarily kuti economy za maiko awa zikuyenda bwino, ayi. That’s actually the reason the so-called stable economy doesn’t trickle to (ie cannot cushion) the rural masses. A good example is the recent tariff increases on utilities like water,… Read more »

pathfinder
Guest
pathfinder

Central my brother that is why our reserve governor says it takes time for people to start benefiting from the stability of our currency. why do you ignore that hey? kodi amalawi kupupuluma bwanji, chirichonse kumangochiona kuchedwa. Mukufuna mayankho a pompo pompo,. tangopitani mukamujowine bushir ngati mukufuna zachangu zanuzo.

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