Malawi proffers solutions to 'heal' its economy: summary
What we know
- President Dr. Lazarus Chakwera's national address on Wednesday, November 15 spelt out tough measures in what he termed as a direction his administration has taken to heal the economy.
- The Board of the IMF has resumed its direct budgetary support to Malawi with the approval of the Extended Credit Facility (ECF) amounting to US$174 million.
- The World Bank's 217-million-dollar package in response to the fiscal reforms Malawi has implemented is also on its way.
- The measures include cancellation of international trips between now and the end of the fiscal year.
- A freeze on all public-funded international trips for all public officers at all levels, until the end of the financial year in March.
- A criteria for local trainings and local travel that will be acceptable, as well as a cap on how much of their budgets can be spent on allowances for such trainings and trips.
- All fuel entitlements for Cabinet Ministers, Principal Secretaries, Directors, and all Members of Senior Management of Public Institutions will be cut in half.
- A review of the upcoming midyear budget review to include provisions for cushioning Small to Medium Enterprises and a reasonable wage increase for civil servants.
- A review of the Pay As You Earn income tax.
What they said
"In the meantime, to protect Malawians from the predatory behaviours of those who want to exploit consumers in the wake of the devaluation, I have tasked the Ministers of Finance and Trade to work together with the Competition and Fair-Trading Commission to investigate all price increases for any sign of unfair business practices and to give me a weekly report on the culprits we need to hold accountable for raising prices in violation of the law,” President Chakwera said in his address. "Most importantly, the savings we will make from these and other spending cuts will go towards the procurement of food and fertilizer to ensure that no Malawian family in any district is left without food in the next four months while we plant our fields," he added.
