Katsonga says Malawi economy ‘terribly hostile’ for business
Business tycoon-cum politician Mark Katsonga has described as terribly hostile Malawi economy for business.
“The economy is so unstable and not friendly for business,” Katsonga, proud owner and founder of Agma and Axa Bus company said.
He said this on Tuesday during the presentation of awards to long working employees.
Katsonga said the business climate has been hostile since the dawn of multiparty politics has worsened in the past two years or so because of the tumbling economy.
“Any economic shocks results in the depreciation of the kwacha making investment in Malawi very risky.”
He said the kwacha has severely tumbled against the dollar saying in 1994, the kwacha was trading K4 only against the dollar but now it is trading K700 from K1000 just a few months ago.
Katsonga also said Malawi lacks skilled manpower to grow the economy.
Labour minister Henry Mussa conceded the poor economy has affected all spheres of life including the media.
Recently Times Group laid off over 40 members of staff after giving notice in the media.
Mussa said all companies wishing to retrench workers needs to follow the law by informing the ministry which will investigate if indeed excess workers would hamper the growth of such e company.
He said FDH managing director Thom Mpinganjira personally presented the case of retrenchment at Malawi Savings Bank to ministry officials.
“We were convinced that there was need for the retrenchment of the 600 workers because of duplication of positions following the merger of MSB and FDH banks,” he said.
FDH head of marketing Sobhuza Ngwenya said the retrenchment will make MSB more effective and efficient as management wants to float it on Malawi Stock Exchange so that Malawians can buy shares from the once state bank.
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What is the rationale of the country’s currency exchange regime? A bicycle economy centred on the vendors as its ‘engine of growth’? Evidence is so obvious that the freely floating MK has been more detrimental than helpful to the economy. Oddly enough, no economist has advised government to adopt a fixed exchange regime. China has a fixed exchange regime for a reason. Do our economists understand economics??? I have doubts; but that’s me. All MSE listed companies have reported heavy losses for FY2015, citing the nearly 50% loss in the MK value. So, who benefits from our currency losses? DONORS/CREDITORS;… Read more »