MALAWI’ ECONONOMY EXPOSED. NO RECOVERY AT ALL.

Quick facts.

·         Malawi’ economy score is  currently at 55  decreased  by 1.1 which is below the world average

·         Malawi’ economic  rank is at  118 on the World economic rank

·         Malawi’ economy rank  in Africa is at 20 over 46 in the Sub Sahara African region

·         In the past 5 years, Malawi’ economy grew with 8 %

As a matter of fact, Malawi’ economy is one of the worst in the world and continuing to deplete. As things stand now, 80 % of Malawi’s total population lives in the rural areas and below the poverty line. Most Malawians survive with less than 1 $ per day. The issue of high unemployment level is also a major blow to the economic growth of the country.

A close analysis on Malawi’ economy, observations have proved beyond reasonable doubt that Malawi economy has failed to make its way on the global stock market. Among other things, the economy of Malawi has failed to shot for the past 49 years of its independence due to the following major constraints:

1.       Poor leadership owing to bad economic situations

2.       Lingering state interference in the private economy which discourages long term economic growth.

3.       Pervasive corruption and a weak executive system which add uncertainty and risk to the economic growth of Malawi.

4.       Leaders with a political culture of self enrichment which result in economic growth remaining fragile and hampered undermining business and job growth.

WHY HAS OUR MALAWI’ ECONOMY NOT RECOVERED.

Since the Joyce Banda administration took over in April 2012, one of the pillars they stressed on was to recover the economy of Malawi which they claimed had been in shambles. Economic Recovery plan was put in place as a starting point. For the past two months to the publishing of this article. The peoples Party had been making the noise that the Malawi economy had recovered owing to the positive reception of Kwacha on which was steered by the availability of maize and tobacco sales which were in progress by then.

Without so much doubt, am off the view of the audacity that the economy of Malawi has recovered. Just to sample out. The article will outline the current economic situation based the situation analysis that has been done in several districts   across the country. Yes, Malawi economy has been exposed and no recovery at all. Some of the major indicators that our economy has not recovered include:

1. HIGH COST AND MAIZE SCARCITY

With time, revelation have been made that with the claimed recovered economy, Malawi has failed to pump out enough money to purchase surplus maize to cover the gap existing in the national food reserves.  Malawi is yet to be stricken by hunger just a month after the harvesting of Maize, the local commodity now is being sold at MK 5,000 and is likely to increase as double as much by December. What does this tell Malawians of the Economy in recovery? This is a clear indication that Malawi’ economy has not been recovered and the rural mass should expect to suffer and scramble more for the commodity as the case was in 2012/2013 season.

2. SCARCIT OF FOREIGN CURRECY

In addition to that, on the stock market presently. The exchange rate has gone out as projected. The US dollar now is trading at 443 Kwacha in the Banks where as on the black market, the US $ is equivalent to 490 and scarce as well. In fact, Malawians should expect more scarcity of the foreign currency which will in turn hamper business and economic growth making the country more vulnerable to the donor community which perpetuates donor reliance and affecting independency in making of bold decisions.

3. LOCAL DISTRICT COUNCILS NOT  BEING  FUNDED

It is interesting and a mockery to Malawians for the Peoples Party to talk about an economy in recovery as of now .From observations, for a while now some district have gone without funding single ring out Chiladzulu and Dedza. This is a heavy blow to the operations of local assembly especially in the sectors of Health, education and agriculture .Malawians are at risk and their lives continuing being exposed to danger as this is not the last occurrence but an accumulation to the already existing ones. These challenges are likely to put business at the grassroots to a standstill impacting lives of the poor majority.

4. GOVERNMENTS FAILURE TO OWNER BILLS

Honorable folks, how on the lands of Malawi can economy recover without government honoring its bills with its partners? How will the issue of Public-Private partnership materialize when the government is becoming a blow to the business community? It’s a total drama that currently People’s Party administration is continuing to talk much of recovery when such problems are continuing to persist. The government is failing to sort small contractual payments with some of the people that were enticed and awarded contracts. Some suppliers have been disappointed with the procurement entity in this case being the government failure to pay them their dues for some months.

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In my opinion as Magede Si Wandale, our economy is naked and continuing being exposed. There is no recovery at all .Poor Malawians in majority are finding it hard to cope with the economic situation. Unless you tell me that Malawi’ economy has recovered in the eyes of orange intellectuals and acquaintances to the ruling class then I am to have no contradiction to your thoughts. Our government is busy cooking figures and moving around the country celebrating hunger and economic recovery which is not in existence.

I remain yours truly Magede Si Wandale .Am sorry if I have puzzled or demeaned you but the fact remains that MALAWI’ ECONONOMY HAS BEEN EXPOSED AND NOT RECOVERED AT ALL.

By: Magede Si Wandale.