Malawi enjoying cosmetic economy, says MP Wakuda Kamanga

 Kasungu north east MP Wakuda Kamanga has described as cosmetic the current performance of the economy.

Speaking in parliament on Wednesday during his contribution to President Peter Mutharika’s tate of the nation address, Kamanga doubted the economy is performing well.

“The government is just preparing figures just to please the IMF. The reality on the ground is different. This is a cosmetic economy to please the IMF,” said Kamanga.

This is in sharp contrast to what President  Mutharika said that the economy is now robust.

Mutharika cited inflation figures, forex reserves and a new International Monetary Fund (IMF) Extended Credit Facility as a sign that his administration has improved the economy.

“Mr. Speaker, Sir, our macro-economic outlook is very bright. Nobody says we have achieved economic perfection. Nobody should say we don’t have challenges. But we agree that there is now a clear sense of economic direction and that we can count our achievements as a nation.

“In general, we have achieved macro-economic stability, inflation reduction and a rebound in economic growth.

“The International Monetary Fund has just given us a vote of confidence. This week, the IMF has approved a new Extended Credit Facility for the next three years. This means the IMF is satisfied with our economic management,” he said.

He threw at the House impressive economic figures that four years ago inflation was at 24 percent but now it is in single digits and that interest rates have dropped from 25 percent to 16 percent.

“We have taken our foreign currency import cover from the lowest point to the highest point in our economic history. From an import cover of below two months, our import cover now stands at 6 months. Our local currency is now stable and predictable,” boasted Mutharika.

He hastened to add that in four years, the DPP-led government has taken gross domestic product (GDP) growth rate from 2.4 per cent to projected growth of 4 percent this year.

But Kamanga said the government qualified for the  IMF extended credit facility because the government cooks figures just to please the IMF.

He said the real situation on the ground show that the economy is performing badly.

Business and Finance Committee of Parliament chairperson Rhino Chiphiko also said Mutharika’s purported achievements have not translated into better living conditions for most Malawians.

Chiphiko, who is opposition Malawi Congress Party legislator, said Mutharika’s achievements have been limited to impressive figures, but have not improved the lives of the poor.

“ But everybody can see the struggle of Malawians,” he said.