NPC attributes multiple forex, fiscal deficit and unsustainable debt to inadequate entrepreneurships

National Planning Commission (NPC) has disclosed that the prevailing multiple challenges of forex shortages, fiscal deficit and unsustainable debt are a result of inadequate levels of entrepreneurship to generate the forex and taxes with which government can retire its debt and support the social services sustainably.

NPC Director General Dr. Thomas Chataghalala Munthali has since challenged the youth in Malawi to take entrepreneurship seriously, assuring that government will trail-braze investments in the economic sectors and open up opportunities for the youth.

Munthali made the remarks at the fiscal incentives for entrepreneurship workshop, which the Commission organized in collaboration with the Reserve Bank of Malawi (RBM) in the week.

National Planning Commission director general Thomas Munthali

He warned that without a vibrant and meaningful entrepreneurship base –entrepreneurship that can generate us forex or save Malawi forex, and not just dealing with merchandise wholesaling and retailing that drain the forex – Malawi will continue having government relying on begging and debts – both of which are unsustainable and demeaning.

“One important area for entrepreneurship is mega farms and maximizing productivity on small pieces of land. We need to have our irrigable land increase to 60 percent from current 29 percent while share of agriculture exports other than tobacco move from below 40 percent to 60 percent, and land under commercial agriculture move from 16 percent to 40 percent by 2030,” he said.

Munthali disclosed that the Malawi Government is ready to partner with entrepreneurship as part of de-risking the investments and confidence-building and eventually dispose off the shares to Malawians.

He added that it is in the interest of the government and well-meaning Malawians to ensure that potential and existing entrepreneurs know and access the available finances from banks, government and non-state actors that can support entrepreneurship initiatives without putting prohibitive conditions.

“As entrepreneurs, be assured that the Commission, in collaboration with Treasury, MRA, Ministry of trade, MITC, MBS, SMEDI, along with other relevant Government agencies and our development partners such as UNDP and World Bank, will continue to facilitate implementation oversight until a critical mass of entrepreneurs, especially the youth, mushroom and thrive in Malawi – then we can bid farewell to the triple challenges of forex shortages and the linked fuel shortages; low tax collections and the associated poor infrastructure and low social amenity provision; and the unsustainable debt,” said Munthali.

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Patrick Uka
Patrick Uka
1 year ago

It’s disheartening when the NPC identifies a structural economic malaise and yet falls short of prescribing a remedy apart from the mere political rhetoric. Sometimes i wonder if the mandate of the NPC is correct. For me NPC must provide strategic solutions and direction for economic development which I do not see with the current commission – Malawi needs a roadmap to 2063 with clear milestones to which the NPC must report regularly and be held accountable not talk show meetings as is the case.

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