Malawi economy in bad shape, reflections on the ground shows – Jooma
Former economic planning minister Ralph Jooma has said radical changes are needed to revive Malawi’s economy, which is in bad shape and requires a fresh approach.
The Mangochi-Monkebay parliamentarian for People’s Party (PP) told parliament that his party has “serious reservations” with the assumptions that are underpinning the 2015/16 national budget currently under debate in the House.
“We are told that the economy is projected to grow by 7 per cent and inflation will decline to 16.4 per cent and interest rates will also decline. We wonder what positives government is foreseeing that we and Malawians in general are not seeing,” said Jooma.
Jooma said that all indications show “a precarious situation on the ground.”
He noted that this year, Malawi has not produced enough grain and consequently, therefore, staple food prices will skyrocket.
“Inflation in Malawi is directly correlated with food prices. Secondly, although it is being highly proclaimed that we have a lot of foreign reserves now, the reflection on the ground is not the same, and the exchange rate is somewhere between K460 and K480 to US$1.
“So basically, Mr Speaker, Sir, we think that inflation will not be as low. Exchange rate will not be as stable. Interest rates will remain high and industry capacity utilization will subdue and therefore hamper economic growth because the economy will not be able to produce the projected goods and services. This is the reality,” said Jooma.
Meanwhile, Minister of Finance and Economic Planning Development Goodall Gondwe concede that the country is going through turbulent times.
Speaking during a breakfast meeting organised by the Association of Early Childhood Development in Malawi (AECDM) to lobby for more funds towards early childhood development, last Wednesday, Gondwe said the economy is in “bad” shape.
An economic observer told Nyasa Times that although DPP had “rigged the May20, 2014 election, it will not be able to rig the economy”.
He observed that the majority of the country’s leadership was more interested in political expediency rather than pragmatic bread and butter issues.
To restore Malawi’s position on a positive economic growth path, he suggested an investment is needed which calls first for investor confidence and security.
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Better than if JB was still a president? Think of the useless trips with big entourages she used to hook from capital hill, opening n planting stones everywhere, elevating n promoting Chiefs everyday, Cashgate n many more. Where would Malawi be today? I am very much afraid. Peter is not ticking but better under him today.
The one who will take over from DPP will inherit problems like JB while 92 billion is in Switzerland (bedroom) Stolen money is what is working now to make -4 percent inflation and by the time they will leave govt it will be -80 percent.
Our country actually lost direction/focus from 1994, may be due to excitement brought about by multiparty/freedom. We are all aware that Malawi’s economy heavily relies on agriculture(especially crop and livestock production) and through agriculture the country was able to feed itself and generate adequate amounts of the most needed foreign exchange/currency. Fortunately, before 1994 all Malwians were fully and actively involved in agricultural production i.e from Head of State, ministers, MPs, civil servants, agricultural companies(Chamwabvi, Press Agriculture and many more), commercial/estate farmers to subsistence farmers. This in turn resulted in more agricultural production than the country’s local needs, such that… Read more »
peter is big man
Invite more industeries into the the country
Intetest rates to be slashed for export oriented industries that sell more than 70% in forgien exchange
Reduce taxes on manufactured goods made in malawi that are exported
Use home produce from agricultural sector to promote industry
Boma labvutika kwambiri pankhani ya za chuma
I am a DPP supporter and I voted for Professor Peter Mutharika. I would want DPP to rule this country. However I have reservations: 1. The economy is not fairing well. People are not interested in economic statistics. We voted for him to make sure the lives of people are improved. Peter has not told the nation how he is going to tackle poverty which is rampant in the country. The DPP government is painting a rosy picture that the economy is good when it borrowed money to cushion the economic vacuum 2. It is not justifiable to, proclaim that… Read more »
Hon former Minister this is good observation on Malawi economy and proceed to say the plan to achive economic growth as an MP, could say bra… bra…. In my opinion you were entrusted on Parliamentary position to steer up economic growth for our country so that it translate to the growth of our economy and not to take the responsibility of a mere journalist investigative responce and stretch your mouth to unlimited stretch with makanda ntchembere. Everyone knows your weaknesses as someone that did not follow up with liquidity while in office to an extent of us tax payers losing… Read more »
“Although DPP rigged May 20, 2014 election, it will not be able to rig economy.”kikikikiki
Zakhala bwino anye Alomwe amenewa pano ndiye adzadza mu town yathu ya Lilongwe akungoyala paliponse