During a parliamentary session, President Lazarus Chakwera responded to a question raised by Salima Central MP Gerald Kapiseni Phiri regarding the skyrocketing price of fertilizer, now exceeding MWK 105,000 per bag.
President Chakwera urged Malawians not to focus solely on the increasing prices of inputs but also to consider the profits they make when selling their harvests.
He cited an example comparing current and past scenarios. Previously, farmers needed to sell six bags of maize to purchase one bag of fertilizer. Today, they only need to sell two and a half bags to afford a bag of fertilizer. According to Chakwera, this indicates an improvement in market value for farmers despite the high input costs.
Chakwera
To mitigate the challenges posed by hunger, the President highlighted that the government has allocated funds to ADMARC, enabling it to sell maize in its markets. This initiative aims to support vulnerable communities grappling with food insecurity.
President Chakwera’s remarks underline the administration’s perspective that, while input costs are high, the improved profitability for farmers offsets some of these challenges. However, critics argue that the rising cost of living continues to strain households, especially in rural areas.
The debate over fertilizer pricing remains a contentious issue as Malawi strives to balance economic pressures with the needs of its citizens.
The Malawian Kwacha (MWK) has hit an unprecedented low, with the US dollar trading at MWK 3,000 on the black market. This staggering development underscores the depths of Malawi’s economic crisis, characterized by inflation, foreign exchange shortages, and poor monetary policy management. It raises serious questions about the government’s handling of the economy and its impact on the ordinary Malawian citizen.
The scarcity of foreign currency has been a persistent challenge in Malawi. The country heavily relies on imports, but its export base remains weak. The primary forex earners, such as tobacco and tea, have been underperforming, leading to significant shortfalls in foreign currency reserves.
Compounding this issue is the government’s excessive reliance on domestic borrowing to finance fiscal deficits. Instead of implementing effective measures to stabilize the Kwacha, authorities have focused on short-term interventions that fail to address the structural challenges at the core of this crisis.
The rise of the black market is symptomatic of a failure in official monetary policy. With forex reserves at critical lows, the Reserve Bank of Malawi (RBM) has struggled to supply dollars through formal channels. Businesses and individuals, desperate for foreign exchange to sustain their operations, have turned to the black market, where rates are dictated by demand rather than policy.
While the official rate remains significantly lower, the gap between the formal and informal markets reflects the government’s loss of control over the currency. It further erodes trust in the RBM and the financial system as a whole.
The consequences of this forex crisis are being felt across all sectors of society:
Firstly, import-dependent goods, including fuel, medicines, and essential food items, have become prohibitively expensive. Businesses pass these costs onto consumers, further straining household incomes.
Secondly, companies struggling to access forex have scaled down operations, resulting in layoffs and reduced productivity. The informal sector, often a fallback for many Malawians, is also under pressure as the cost of doing business skyrockets.
Thirdly, the economic hardships are fueling discontent among citizens, with protests against high inflation and government inaction becoming more frequent.
The government’s response to the forex crisis has been underwhelming. While there have been efforts to secure loans from international partners, these funds often come with stringent conditions and are insufficient to address the deep-rooted problems.
Diversify the Economy: Reduce reliance on tobacco by promoting other export-oriented industries such as mining, agriculture, and tourism.
The current administration must cut unnecessary spending, especially on luxury items like expensive vehicles, and redirect funds toward productive sectors.
Strengthen monetary policies and improve forex allocation transparency to discourage black-market activities.
A well-negotiated extended credit facility or debt relief program could provide breathing room for economic reforms.
The dollar trading at MWK 3,000 on the black market is a grim reminder of Malawi’s economic fragility. Without decisive action, the situation will continue to worsen, leaving millions of Malawians in greater hardship. The government must act swiftly to stabilize the economy and regain public trust. Failure to do so could lead to a deeper crisis with long-lasting repercussions for the nation.
First Capital Bank (FCB) has secured the naming rights of Nyasa Big Bullets FC seasonal awards.
The development was announced on Wednesday at a press briefing in Blantyre.
This means the seasonal awards will be called the First Capital Bank Bullets Awards.
FCB head of marketing Twikale Chirwa said the bank feel duty-bound to bankroll the red carpet event apart from being the official sponsors of the club.
Chirwa announced the bank has since injected K10 million into the FCB Nyasa Big Bullets seasonal awards.
The awards ceremony is scheduled for December 23 at the Golden Peacock Hotel in the commercial capital.
“Last year, the team won all the major trophies in the land but could not properly reward the players for their great achievement because the team was too busy and not available for the awards.
“We feel time is now ripe to recognise their efforts and performance in the just-ending season,” Chirwa said.
Chirwa also disclosed the bank will also give out monetary prizes for some Bullets legends and supporters.
Founder of the Enlightened Christian Gathering (ECG) Church Prophet Shepherd Bushiri has called for collaboration and support from various stakeholders in preparation for its ‘Night of Goshen Crossover’ set for December 31, 2024 at AHL Holdings in Kanengo, Lilongwe.
Speaking ahead of the event in Mzuzu on Wednesday, Bushiri urged stakeholders to contribute through spiritual support, such as prayers, and by offering essential services such as restaurants, transportation, and recreational facilities.
Bushiri
“I would like to call upon service providers to partner with us in facilitating the event. We are inviting businesses and individuals offering essential services like taxis, apartments, hotels, lodges, and houses to let to come forward and plan with us,” he said.
Bushiri highlighted that the church alone cannot manage the large crowd, emphasising the event as an opportunity to promote Malawi’s tourism and address forex challenges.
He said the ‘Night of Goshen Crossover’ is significant as it aligns with the official opening of Goshen City in 2025.
The event is expected to draw over 25,000 participants from more than 70 countries.
The Department of Climate Change and Meteorological Services(DCCMS) has announced that most areas in the country will experience a heatwave over the next five days, starting today Thursday.
According to a statement issued by the department, temperatures in the Shire Valley are expected to soar to 43 degrees Celsius, which is six degrees Celsius above average,while lakeshore areas will reach 36 degrees Celsius, five degrees Celsius above average.
However, the department has urged people to take preventive measures, including staying hydrated by drinking plenty of water throughout the day and dressing appropriately.
“Prolonged exposure to extreme heat can pose serious health risks, especially to vulnerable groups, such as the elderly, young children, and those with pre-existing health conditions,” reads the statement in part.
The development comes as some districts in the country are recovering from the aftermath of Tropical Cyclone Chido, which has claimed 13 lives and caused significant property damage.
