Curtain falls on 2023, hoping for a better 2024

In under four days, the curtain will fall down on 2023 and mark the dawn of a brand New Year 2024 on January 1.

The New Year is always a momentous milestone as it offers individuals and organisations an opportunity to take stock and map the way forward.

Looking back at 2023, it was not different from 2022 as it gave Malawians a torrid time when they endured ever rising prices of goods and services that made life unbearable. The 44 percent kwacha devaluation or realignment implemented in November was the last nail on the coffin of Malawians’ woes.

Fuel scarcity, largely attributed to foreign exchange drought, continued to worsen in the year, thereby stalling economic activity.

The foreign exchange situation did not make remarkable improvement in the past year as the economy struggled to generate enough to foot import bills. The situation became more glaring when, between August and November, Malawians experienced fuel shortages that further stalled economic activity.

Throughout the year, authorities kept fingers crossed for the Extended Credit Facility (ECF) which the International Monetary Fund (IMF) Executive Board finally approved in mid-November. The IMF has extended to Malawi a four-year $175 million ECF.

While the ECF itself could be on the lower side, it has kind of unlocked several closed taps of donor inflows that are slowly stabilising the foreign exchange market, giving hope that things could improve in the near future. For example, the gap between the dollar rate in Authorised Dealer Banks (ADBs) and the parallel market has narrowed with ADBs pegging it at K1 700 and the other market at K1 850 from K2 400 soon after the devaluation.

Natural disasters also worsened the situation as Cyclone Freddy in March washed away crop fields, destroyed infrastructure such as houses, roads and bridges, in the process displacing thousands, especially in the Southern Region. On the other hand, some of the areas spared by the cyclone damage experienced drought that also affected food production such that it was no surprise when the Malawi Vulnerability Assessment Committee reported that 4.4 million of the estimated 20 million population would be in need of food aid.

But, despite the harsh circumstances, people need not lose hope. Keep pushing by making adjustments where necessary to make ends meet.

Ever since Covid-19 hit the globe and subdued economies, life has never been easy. Recovery has been slow and, at times, gains washed away by natural disasters. The situation prompted most individuals and corporates to carry forward the unfinished business, that is the spirit, do not abandon the plans of 2020, 2021, 2022 and 2023. Keep pursuing them to their fruition.

In 2021, President Lazarus Chakwera unveiled the Socio-Economic Recovery Plan set to stabilise the economy and put the country on the right path towards achieving the Malawi 2063, the long-term development strategy. However, The Nation assessment this week showed that the three-year strategy, which ends this December 31, has missed most of the key targets.

At personal level, I once more refer you to personal finance management literature and one of the best references is the best-seller Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter. This simple, but inspiring book provides guidance on how one can attain financial independence. The book is widely hailed to have challenged and changed people’s perception of money and how to spend the same. Be very careful who you get your financial advice from. There is a big difference between financial advice from rich people versus sales people.

Let me add that one’s circle of friends has a greater influence on one’s success. Remember the saying ‘you can’t soar like an eagle when you hang out with chickens!’ Who do you hang out with? What issues dominate your conversations? Have an honest soul-searching.

This is my last entry for 2023 and I would like to take this opportunity to wish you all a happy New Year 2024. May God bless you all.