By Chisomo Phiri
The President of the United Democratic Front (UDF), Atupele Muluzi, has called on government to adopt economic policies that support businesses and farmers, warning that continued policy inconsistencies could worsen the country’s economic challenges.
Speaking to 247 Malawi News,Muluzi said businesses, including the agricultural sector, remain the backbone of the country’s economy and must be protected if government is to sustain revenue collection and national development.
He argued that economic policies should be designed to enable businesses to grow and farmers to increase production, noting that this is essential for expanding the country’s tax base.
The UDF leader criticised what he described as poor economic policy decisions under the previous administration, saying they had caused serious economic difficulties.
He added that he had publicly opposed those policies at the time and expressed concern that the current administration appears to be following a similar path.
A key issue he raised is the country’s exchange rate policy, particularly the continued official pegging of the kwacha at around MWK 1,800 to the US dollar, despite parallel market rates reaching approximately MWK 4,000.
He noted that the scarcity of foreign exchange in formal banking channels reflects what he described as a de facto depreciation of the currency.
Muluzi further said that prices of fuel and imported goods already reflect the higher parallel market exchange rate, which he argued demonstrates a disconnect between official policy and market realities.
“These are realities that must be acknowledged and addressed honestly,” he said.
He also referenced the UDF’s ‘BusinessFirst Strategy,’ saying it offers practical solutions to stabilise the economy and support productive sectors.
He warned that delays in policy reform could lead to business closures, relocation to neighbouring countries, and reduced agricultural activity in the upcoming farming season, potentially deepening economic hardship for Malawians.
Muluzi added that Malawi should learn from past policy experiences, citing the period between 2009 and 2011 under the Zero Deficit Budget approach, which he said also faced significant challenges.
