Lipunga laments 2014 economic woes
Financial services group Old Mutual Malawi chairperson Jimmy Lipunga has decried a number of economic challenges that gripped the domestic economy in 2014. He cited substantial currency depreciation and interest rates volatility as some key obstacles to its business in the year.
“The year 2014 is our golden jubilee year and should have been the most memorable year. Ironically, it is perhaps one which Malawians would wish to forget rather quickly,” said Lipunga on Monday in Lilongwe.
Lipunga, who is also Public Private Partnership Commission (PPPC) chief executive officer, was speaking during the official opening of the K20 billion (about $40m) Mpico Gateway Shopping Mall, an event graced by President Peter Mutharika.
Old Mutual Malawi is the parent company of Malawi Stock Exchange (MSE)-listed Mpico Limited, a property developer.
Lipunga said 2014, just about to end, was packed with so many infamous acts, including Cashgate, weird acts of violence and crime.
“On the economic front, the substantial currency depreciation and interest volatility left keen savers with a sore feeling of being robbed,” he recounted.
Lipunga said as a long-term partner in development, Old Mutual is also anxious to see the currency and interest rates stability to sustain its investment strategy.
The country experienced a turbulent kwacha currency movement, especially in September and October, which saw the currency ceding to a dollar from a value of K390 to hit a record high of K520 per dollar.
Such a loss in the value of the local unit was a heavy blow to importers as they had to cough extra kwachas to meet their import demands.
The rapid depreciation also hit most manufacturers hard as they suffered foreign exchange losses on account of their foreign debt repayment obligations.
“We acknowledge government efforts that have seen the exchange rate stabilising in the recent past. We are aware that government is doing everything possible to achieve an economic turnaround in the shortest period,” he said, attacking Malawians’ obsession for consumption instead accumulating capital for investment.
Old Mutual has operated in Malawi’s financial services sector for the last 60 years.
While it is renowned for offering life insurance and pension products, the firm has diversified over the years into asset management and real estate development.
