Malawi face Christmas of discontent: Finance Minister Goodall admits economic turmoil, 2017 forecast misty

Malawians are facing a Christmas of discontent as they have to battle it out for survival since  the cost of life for November was much higher than October, Minister of Finance, Economic Planning and Development Goodall Gondwe has conceded.

Gondw: Poor economy

Centre for Social Concern says the basket needs, an average cost of life, has gone up in the last month.

The faith-based economic advocacy group says in November, a family of six would need K172, 000 from K166, 000. The centre says this is very expensive for ordinary Malawians.

Gondwe said the year 2016 has been tough for both citizens and government as the cost of living soared on the back of falling real incomes amid persistently high inflation rates.

The country’s purse keeper said Malawi’s economic turmoil has also been worsened by donors who he said had not “lived up to their promise to provide aid through their own means” to Malawi.

“Although donors promised to help the country through their own means there are still many gaps in as far as their funding is concerned. I hope that the donor community, while they may not give us direct budget support [DBS], they will provide ad hoc support, and this support will be increased,” he said.

This comes at a time when the economy is still in shambles, with the inflation rate hovering at 19.9 percent.

Reserve Bank governor Charles Chuka has said the government expected the inflation rate to be in single digits by now and conceded the economy is still in bad shape.

He told President Peter Mutharika that if the state of the economy remains the same for a certain period, the bank will issue a new bank note after the K200 new note comes into circulation on Monday.

Economics Association of Malawi (Ecama) president Henry Kachaje said government must take necessary steps to revive the ailing economy, saying private sector, touted as the engine of the economy has  been hard hit.

“It looks like the engine has been knocked down and has ceased, so some repairs need to be done.”

 

One of the country’s most vocal NGOs, Centre for Development for People (Cedep) has accused the DPP administration of pushing the blame of the current economic situation on other factors rather than coming up with strategies that can take Malawi out of the mess. He describes the purchase of a K100 million vehicle for the President as wastage of State resources.

“Our kwacha continues to depreciate against major [trading] currencies and our purchasing power has been greatly eroded. Yet the DPP led government under the so called visionary and dynamic leadership of President Mutharika has either buried its head in the sand like an ostrich thinking the problems will disappear on their own or are living in denial.

“He [Mutharika] has not told Malawians the Government solutions and action plans with clear benchmarks to end these many problems. What he has done is to distance himself from these problems and remain silent,” Cedep said in a  statement

Meanwhile, Gondwe failed to put a brave face to the media if government will anchor the economy in 2017 , saying it lies on how the rains will fall.

“It will be difficult to tell you how the status of our economy will be in the year 2017. This is because I don’t know whether the country will experience enough rainfall,” said Gondwe.

“If the rain will fall as it has started and according to the prediction of the meteorological department then, our economy will be in good condition and if not then it will be worse,” he added.

Gondwe described the 2016 financial status of the country as disaster.

He said this was because of the climate change which resulted into floods and dry spell.

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winston msowoya
Guest
S0 long as we strongly believe in tribalism as we do now,picking on the Northerners,Malawi will never ever progress because the country belongs to all of us.It would be foolhardy to import an engineer from foreign land and pay him or her in foreign currency while the same position can be handled by a Malawian from the North if the government cant get one from the Central or Southern Malawi.Brothers and sisters,we are committing our own suicide that we all see now.There is no single tribe or ethnic group that would develop Malawi on its own,we can see this today,we… Read more »
Falliot
Guest
Advice to goodle gondwe,,,,,you can see that to fix a zero aid economy is not easy in a poor country like Malawi,,,,, as a minister of economic planning, know that Malawians don’t even know what you have planned for them for next 10year as we can see you don’t even know what the economy will be in 2017…..whether you answering as a politician to say you don’t know about Malawian economy next year or you gave your response as an economist……,iam sorry I can’t call you an economist, cause if you were you could give a projections of how Malawian… Read more »
Falliot
Guest
We need to have a focused, visionary, selfless leadership..,… , aleadership with determination…,… That have action plan to change our economic activities ,to diversify economic activities for vibrant and profitable ones, to transform the mind set of all Malawians….so that Malawians should invest in a large scale farming with total mind of entrepreneurship,……. Government should not implement agriculture as a campaign tool for election,,,, as this is encouraging junk programs such as fisp, …,which only encourages raziness amongst Malawians, as many only yield a handful of crops just for consumption…, within two months they have no food.,,,,,,,,,, you can’t fix… Read more »
Chief activist
Guest

will mw ever have good economy..?evry time goodall is owez complaining……in @015 he claimed 2016 is gona b a yr to smile,,,,,,,nd now he peddles foward 2 2017……..rilly?……nde tixiti chakwera anama?

Samuel Lwara.
Guest

Heard clearly from old man Goodall. But just for a positive remedy, let voluntarily those in cabinet resign or retire so that you should not die out of stress 2017. Things have ran out of hands and no excuses that could give hope to vulnerable marginalized citizens. Goodall be the first one.

CHEWA FEDERAL FRONT
Guest

It’s strange that APM is unwilling to try new blood in the ministry of finance.
I can understand the sentimental value of keeping Gondwe and Tchuka in their positions; but the cost is huge.
Under normal circumstances the entire economic team should have been replaced. Gondwe can remain minister in, say, local govt; if only for sentimental value.

Advisory Committee
Guest

Goddal is testifying that malawi is a failed state

Dyson kasamba
Guest

Full of nosense presentation.malawi can regain its economy on the right path.komano dyela la atsogoleri anuwo.this country shall/will be like this for good.umbuli wautsogoleri wabwino is the main factor

His Excellence the Life President Wolemekedzeka Mkango Lion Chivomerezi Chisokonezo Artillery ArchMissile Manthakanjenjemereza
Guest
His Excellence the Life President Wolemekedzeka Mkango Lion Chivomerezi Chisokonezo Artillery ArchMissile Manthakanjenjemereza

In Malawi, we have brilliant economists like Prof. Chikaonda, Henry Kachaje, and many more whom Peter can choose from. Why clinging to a spent force like Gonndwe

Kanthu Ako!!
Guest

If Chikawonda and Kachaje is what malawians believe to be brilliant, then indeed there is no hope for Malawi

DPP GRANDIOSITY
Guest
The biggest problem in Malawi at the moment is that we are ruled by people who have seem to possess false, irrational and fixed beliefs (delusions) that things are well and as government they are trying everything possible to fix the situation. And that it is them only AND THEM ONLY who have the wisdom or monopoly of knowledge to get Malawi out of the predicament. Everyone else is a failure, doesn’t wish dpp well, etc. TYPICAL DELUSION. But the painful truth in the world is that if your best is not good enough for what you are trying to… Read more »
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