Government not serious on economic growth
The revelation that government owes the private sector billions of kwacha is not only unfortunate but also puts into question government’s commitment to economic growth.
When President Peter Mutharika opened the 11th Agriculture Fair at Chichiri Trade Fair in Blantyre yesterday, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Newton Kambala disclosed that government owes the private sector K173 billion in arrears for goods and services that were supplied.
After the MCCCI boss had made the claim, the public expected a response from government, that is, how it is going to settle the arrears. Unfortunately, President Mutharika decided not to comment and instead focused on other issues.
It is undeniable that the private sector is the engine for any economy. And for this engine to function properly, government needs to create a conducive environment for it to flourish. The private sector can only function properly if it is not stifled economically.
Malawi needs a vibrant economy in order to function properly. With the uncertainty about donor funding, the private sector is the only hope. Government should, therefore, make sure that the private sector is functioning properly by making sure that it is provided with business and is paid for whatever work it has done.
Unfortunately, the same government that wants to create a vibrant private sector; that wants to improve the lives of the people is the first to stifle the private sector by denying it legitimate income.
Now the private sector is suggesting that the 2014/2015 budget should have the money to settle the bills. While one would argue that the budget should carry money for building hospitals or buying drugs, it is a necessary evil to accommodate money for paying arrears for the private sector.
Failing to do so will question government’s appeal to the private sector to help in the country’s economic growth.
