Somecompanies in the industrial city of Blantyre have reduced production outputs due to the ongoing forex shortages citing lack of adequate raw materials to meet production levels.
On average, companies have dropped their output by 20 percent as manufacturers don’t have ability to import raw materials, the mainstay of the industry, thereby impacting negatively on production capacity.
This has led to the firing of over 400 industrial workers, according to the Commercial, Industrial and Allied Workers Union (CIAWU), which represents workers in the banking, retail, and manufacturing industry.
Carlsberg Malawi this week placed adverts in the media warming of periodic shutdowns and rationalization of production because of unavailability of imported raw materials such as beer and glass bottles due to the shortage of forex.
The brewer warned that if the situation does not improve, as well as supplies of diesel, the shutdowns would become more frequently as the country approached the festive season.
The local press quotes CIAWU General Secretary, Mary Dzinyemba, saying the problem of forex shortage had forced the manufacturing industry to scale down on activities.
This she says has affected over 600 industrial jobs. She attributed the development to the suspension of night shifts by some operators and confirmed that over 400 have been fired.
She says it is must that government addresses the forex shortage problem as a matter of urgency, fearing that delays to fix the problem could result into more jobs lost. CIAWU has a national membership of over 4,000.