Reserve Bank of Malawi Governor Perks Ligoya said on Tuesday that it is misleading to say that country’s economy was doing very well under the tenure of Bakili Muluzi than currently under economist President Bingu wa Mutharika.
Economist and former diplomat Dr Jerry Jana told a radio interview on privately-owned Capital radio that “in the Bakili Muluzi regime, money was flowing “ and that currently the country is facing worse economic crisis under Mutharika rule.
Jana said many Malawians “are complaining [that] money is not circulating.”
Asked on the same Capital Radio to comment on assertions that Malawi’s economy is sick now than under Muluzi, the central bank governor, who is also an accomplished economist , said in the balance of facts, things were better now economically.
“Under Bakili Muluzi there was nothing like fiscal prudence, fiscal discipline,” said Ligoya.
“We (government) had more than K10 billion money that was owned to the private sector. We paid all loans and bring economy to stability,” he said.
“We have stabilised the economy, we are talking of an average of about seven percent growth rate annually,” said Ligoya.
The RBM boss said the government of Mutharika also reduced inflation to a single digit.
Meanwhile, the country’s annual inflation rate is expected to climb as commodity prices have increased following the fuel price hiking.
According to Ligoya, Malawi is likely going to reform its exchange rate regime by devaluing kwacha currency in order to boost foreign reserves, a move that is likely going to affect the already ailing economy.
An International Monetary Fund mission will be in Malawi from December 1 to 12 to discuss with authorities on macroeconomic policies.Follow and Subscribe Nyasa TV :