RBM says second hand clothes, cars imports, debt repayment draining forex in Malawi

Governor of the Reserve Bank of Malawi Dr Wilson  Banda has disclosed that Malawians’ appetite for imported second hand clothes and cars from is contributing to the depletion of foreign exchange in the country.
Addressing a joint Parliamentary Committee on Natural resources and climate change, Banda said it is sad to note that the country is under pressure on forex because up to now, the country is paying huge amount of money for repayment.

Governor Dr Wilson Banda
He said currently Malawi exports $3 billion products and imports $1 billion leaving out $2 billion which has to be financed through borrowing.
Banda said the problem is that the debt which Malawi is repaying is of high interest rate.
“Our country is currently consuming more than what the country is producing. May be its time we as a country do much on Agriculture, Mining, Trade, and other important sector,” he said.
Banda said the good news is that Malawi is still having talks with the International Monetary Fund (IMF) saying if that facility is unlocked  , Malawi can no longer experience forex shortage which affect flow and availability of fuel in the country.
Addressing the same committees, National Oil Company of Malawi (NOCMA) Deputy Chief Executive Officer Hellen Buluma said currently 224 tankers have arrived in the country.
Buluma said additional 22 tracks of fuel have loaded in Beira and that some out of these are already being cleared at the boarders.
“The situation is normalizing and currently NOCMA is operating its depots 24 hours just to ensure that filling stations are having fuel 24 hours.”
Chairperson of the Parliamentary c
Committee on Natural Rsources and Climate Change, Werani Chilenga, commended RBM for the effort being done in ensuring that Malawi remains afloat in time like this.
Chilenga further commended stakeholders for showing interest to resolve fuel issues which has been affecting the country.
Malawi Energy Regulatory Authority Chief Executive Officer, Henry Kachaje, Secretary for the  Treasury Mafuta Mwale, were some of the high ranking officials who faced Parliament, including officials from Petroleum Importers Limited, Petroda Malawi and Mount Meru.

Follow and Subscribe Nyasa TV :

Sharing is caring!

Follow us in Twitter
Read previous post:
New Leader at Malawi Association UK seek to engage govt on MW2063 vision

Charitable organisation, Malawi UK Association (MAUK) says it wants to engage with to achieve the MW2063 vision as its contribution...