Africa-Press – Malawi. Local economic think-tank, the Economics Association of Malawi (Ecama) has reiterated the need for economic policy realignment and prudence by the government for quick recovery from the pangs of the Covid pandemic, and lately the Russo—Ukrainian War.
Ecama Secretary General Andrew Kumbatira was speaking on Thursday during a panel discussion the economists’ body hosted in collaboration with the United Nations Development Programme (UNDP).
The panel discussion, held under the theme Accelerating Private Sector Recovery from the Impact of Economic Shocks, was set to accord participants space to discuss ways of accelerating the private sector’s recovery from the impact of the exogenous shocks.
Participants contributed towards the putting up of policy interventions which the government should implement to support the private sector’s recovery from the shock.
In his address, Kumbatira said Malawi is still suffering from the economic shocks which are increasing in intensity and frequencies and need to be addressed. He said the government policies should aim at easing the challenges the private sector is facing.
“The challenge for the Malawi economy is that the shocks are increasing in intensity and frequency and they are overlapping each other before the economy recovers and that is creating pressure on our economy and we are seeing deterioration in the welfare of people.
“If you look at the Malawi 2063 agenda, you will see that it is saying that the economy of Malawi will be driven by the private sector and what policies are in place to ensure that the private sector thrives? Where is government policy to support the private sector to begin to produce things that we really do not need to import so that we can save foreign exchange to be used for things we cannot manufacture here?” he said.
UNDP Resident Representative Shigeki Komatsubara said the shocks have been manifested in the form of supply chain disruptions, high prices of commodities and increased costs of production.
“Given the huge responsibility of the private sector to spur sustainable economic growth, I believe it can play a critical role in driving sustainable progress towards the achievement of Malawi’s aspirations.
“It is against this background that UNDP is at the forefront and working to promote the private sector engagement in the economy of Malawi through its private sector development programme,” Komatsubara said.
Commenting, Director of the Private Sector in the Ministry of Trade and Industry Diamond Chikhasu said the private sector remains an important part of the economy as it is essential in the government’s job creation agenda.
“With this in mind, the importance of its fast recovery from the shocks cannot be overemphasised. It is my conviction that today’s discussion will provide the government with practical policy options to help the private sector to not only recover but also build resilience to withstand any future shocks,” he said. The panel discussion attracted participants from the private sector, the government and other stakeholders.
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