Forex crisis costs 45 Bakhresa jobs

Shortage of foreign exchange in Malawi has forced the sole wheat flour and major maize flour producer, Bakhresa Grain Milling (Malawi) Limited, to fire 45 of its 200 employees.

Besides retrenching staff, Bakhresa has also reduced its production from 9 500 to 3 750 metric tonnes. The company says more job losses are inevitable.

In a written response to a questionnaire, Bakhresa human resource manager Richard Tchereko said due to the persistent shortage of forex, the company has been unable to import raw material, thereby prompting the downsizing.

Said Tchereko: “I can confirm, with regret, we have been compelled to retrench 45 permanent employees. We tried to avert the situation by trying alternate resources such as planning reduced working days from way back in September 2011.

“We have been and are still running a four-day week. If this situation persists, I am afraid the company may be left with no option, but to retrench more staff.”

Tchereko said the company has also closed its sales branch in Malawi’s capital, Lilongwe, which had about 10 employees, while the company’s Mzuzu branch in northern Malawi is still operational.

News of Bakhresa’s hazy future come barely a year after President Bingu wa Mutharika inaugurated a state-of-the-art K1 billion ($6 million) computerised wheat mill for the miller.

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) president Matthews Chikankheni on Tuesday said the chamber foresees the trend spilling over to other companies. He said this will have a huge negative impact on the economy.

Said Chikankheni: “It would only be natural and obvious for companies to retrench because no one would keep idle manpower in the absence of raw materials.

“Most companies are not producing along the same capacities they used to when forex was available. It has become worrisome.”

Malawi Economic Justice Network (Mejn) executive director Dalitso Kubalasa also said companies are at their lowest productivity points because of lack of raw materials and lost hours due to employees queuing for fuel days on end.

Malawi is reeling under an acute forex shortage since 2009. Economic commentators have attributed the forex shortage, which has also led to erratic fuel supplies costing the country millions of kwacha in lost production, to donor aid freeze and poor prices the country’s top forex earner, tobacco, has been fetching in recent years.

Consequently, the forex crisis has led to erratic supply of fuel since 2009. These factors, coupled with an energy supply crisis, have virtually grinded the country’s economy to a halt.