Africa-Press – Malawi. It never rains but it pours for the Chakwera’s government. If the headlines are not about looting government coffers through corruption and thievery then they are reporting about the ailing devaluation of our local currency Kwacha.
It is not by coincidence that Malawi has found itself entangled in the dire situation it is in. Much as Mother Nature has contributed much to the ailing economy in our country, the Tonse Alliance administration is largely to blame for mismanaging the economy.
No responsible government can sit phwii with arms akimbo blaming the COVID-19 pandemic, cyclone Fred, the previous regime, and the Russia-Ukraine war for the worsening economy without providing solutions.
The truth of the matter is that Malawians are experiencing these excruciating economic hardships due to the Chakwera government’s failure to manage the innocent economy. What Malawians are undergoing now are the adverse effects of Chakwera’s laissez-faire style of leadership in general.
First, President Chakwera was supposed to appoint competent and well-experienced technocrats in key and crucial positions such as Minister of Finance, Minister of Agriculture, and Reserve Bank Governor.
Devaluation of the local currency works well in a country that exports goods more than it imports. Amangwetu, after devaluing the Kwacha, what is Malawi exporting that will earn it more forex?
The truth of the matter is that the benefits of devaluing the Kwacha are minimal in a country that is predominantly importing both raw materials and finished products. This is the very same reason why Dr. Bingu wa Mutharika, an economist by profession, refused to devalue the local currency willy-nilly.
It does not require any knowledge of econometrics to appreciate that the moment Kwacha is devalued, the inflation rate sours and prices of basic goods and services rise.
The Chakwera government needs to strike a balance between bowing down to the demands of the International Monetary Fund (IMF) and protecting the voter from the adverse effects of devaluation.
The recent 44% Kwacha devaluation lacked proper timing as it was effected at a crucial time when farmers are busy buying agricultural farm inputs including fertilizer.
What this means is that farmers should brace for tougher times as agricultural farm inputs are expected to lunatically soar. The second important step is for President Chakwera to assert himself as the driver of this country. He must be on top of issues.
It is significant to appreciate that all of Chakwera’s appointees are there to help him lead this country well. It is therefore necessary for President Chakwera to get periodic reports from his appointees.
It is expected that these regular reports will assist President Chakwera in determining the trend and progress of events. For instance, our Kwacha has not just tumbled on a single day. It has been cumulatively depreciating daily.
Thirdly, the Chakwera government erred by canceling the IMF credit facility which was already secured by the previous Democratic Progressives Party (DPP) regime.
By canceling one clinched deal, they expected to get another better package from the same IMF. Sadly, they goofed. To keep the government machinery running, the government has accumulated huge domestic and foreign debts.
The Chakwera government should start managing such a huge debt as soon as yesterday. It can even probe for the possibility of a debt cancellation or debt write-off.
Fourthly, Malawi is experiencing an economic meltdown partly because of the mismanagement of the Agricultural Input Subsidy Program (AIP). A lot of money is pumped into the program and the proceeds from this initiative are minimal.
The program lacks monitoring and evaluating components to determine if the undertaking is profitable and sustainable. Truth be told, it is not. It is just a political gimmick to score cheap points.
Fifthly, the Chakwera government is advised to spend within the constraints of the approved budget. The willy-nilly overspending by the current regime has plunged this country into an economic abyss.
There were times when the government was reluctant to call for a parliamentary mid-year budget review session because all the budgeted money had been spent within 6 months.
Sixthly, the Chakwera government has failed to walk the talk as far as the implementation of economic austerity measures is concerned. It is on record that President Chakwera globetrotters a lot. His frequent domestic and international travels have drained our forex reserves.
Unfortunately, President Chakwera travels with a village of delegates depleting our government coffers further with exorbitant traveling expenses and subsistence allowances.
Amid the economic meltdown in our country, how did President Chakwera allow the erstwhile Minister of Foreign Affairs, Mr. Eisenhower Mkaka to charter a private jet to a virtual meeting?
Recently, many Malawians were bamboozled to hear that President Chakwera authorized Mrs. Catherine Gotani Hara, the Speaker of the National Assembly, to travel to 10 countries within 4 months of campaigning for the presidency of the Inter-Parliamentary Union. No wonder she lost the elections.
Seventhly, corruption is draining government coffers. It is unfathomable that the Malawi Government can procure fertilizer from a London-based butchery company, Barkaat Food Limited.
It is very pathetic that President Chakwera has shown no political will to eradicate corruption. He pardoned corruption suspect, Dr. Bakili Muluzi and corruption convict, Mr. Uladi Mussa. Malawians expect all corruption suspects and convicts to face the long arm of the law.
Eighthly, usually, natural disasters such as cyclone Fred and droughts are just inevitable. The Government is therefore advised to use relevant experts to forewarn people of impending natural disasters. Contingency plans must be set up in advance to circumvent the effects of such disasters.
Last but not least, it does not assist matters just to complain about the effects of COVID-19 and Russia-Ukraine wars without offering solutions. President Chakwera is therefore consequently advised to borrow a leaf from other countries on how they have coped up with the adverse effects of covid 19 and the Russia-Ukraine war.
By the way, what measures can the local citizens take to cushion themselves from this unfriendly economic environment Malawi is going through? Outlined are the recommended measures.
Malawians are advised to explore various sources of income such as employment and small business adventures. It is highly recommended that people should spend their hard-earned money within their budget.
Malawians can save a lot by cutting off unnecessary expenses such as booze, social gatherings, and weddings among others. Do not be overtaken by unplanned events. The festive seasons of Christmas and New Year are around the corner. Enjoy and celebrate wisely.
Stay safe. As the festive season is nigh, unscrupulous people take advantage to rip others off their property, hard-earned cash, and even spouses. Buy essential goods and services in bulk. You will save a lot.
Sharing is caring. The more you give, the more you receive. Don’t throw away extra food, clothes, money, beer, or cigarettes. Please share them with people in need. Work extra harder than ever before.
Practice ubuntu over individualism. Uplift someone in your life. Some elite leads better individualistic life in town yet their relatives and parents are suffering. Ubuntu means that we suffer and enjoy together.
Be optimistic. Usiku ungatalike chotani kumachabe basi. Do not worry too much about tomorrow for tomorrow will take care of itself. Just act in the way you can now. There is no permanent situation. The only entity that is permanent on planet Earth is change. No matter how long it takes to go through these economic woes under the tutelage of Reverend Dr. Lazarus McCarthy Chakwera, be optimistic that there will be light at the end of the tunnel. It is a question of time. So do not panic.
In conclusion, much as President Chakwera is the driver of this country to lead us out of this economic mess, every citizen has also the responsibility to be part of the solution to the quandary at hand.
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