6 November 2018

Malawi: Gondwe Says Malawi Economy Now Stable - Opposition MCP Tips On Growth

Minister of Finance and Economic Planning Goodall Gondwe on Tuesday said government has achieved economic stability and they are doing everything possible in order to sustain a recovery in economic growth.

Gondwe was speaking in Mangochi when he opened the Monetary Policy Conference.

He told delegates that there is lower inflation and an increase the purchasing power of the kwacha, Malawi's currency which has been stable for some time now.

"We are doing it well and we will continue doing well," the treasury Czar said.

You should be positive of your country. Yes, we may be poor but speak positively of your country," he said.

Commenting on Gondwe remarks, Malawi Congress Party (MCP) spokesperson on financial matters Kusamba Dzonzi said there is need for government to do more so that what is said is really what is happening on the ground.

He said government need to address the weak fiscal environment by maintaining the upward trends in revenue mobilisation and coupling them with expenditure discipline.

Dzonzi said currently the effects of stable economy are not trickling down to people at the grassroots.

He said reducing rural poverty in Malawi will require among other elements; stabilise growth that is consistent and strong, raise the labour incomes of the poor by increasing the productivity of agriculture and facilitating movement into new, more remunerative nonfarm activities, give larger and well-directed transfers to the poor by reforming existing safety net programmes to help them to protect their incomes and assets against shocks.

Malawi is a predominantly agro-based and most farmers who produce our staple food live in rural areas

In his speech, Reserve Bank of Malawi Governor Daliso Kabambe said the conference is very crucial because it will allow stakeholders to deliberate on whether to cap interest rates.

Kabambe said RBM have been capping interest rates since 1987 and that they remain fixed.

He said that the economy has currently revitalised but he was quick to add that its fruits cannot be reaped now, saying it takes time for the people to benefit from the economy which is just stabilising.

The bank lending rates have reduced from 45% to 24% and this is not a mean achievement.

Some of high level people to speak at the conference include reserve bank governors Dr Denny Kalyalya from Zambia and Dr Patrick Njoroge from Kenya.

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