UTM leader Dalitso Kabambe has proposed a policy to promote electric vehicles (EVs) as part of measures to reduce fuel imports, which ranks among major foreign exchange drains.
He also called for the speedy establishment of fertiliser manufacturing companies, revitalisation of the local manufacturing sector and a crackdown on corruption, which he blamed for worsening the country’s foreign exchange shortages.
Kabambe was speaking in an exclusive interview with Zodiak TV, which was aired on Sunday.
“Instead of the fuel guzzlers, government needs to institute a policy which ensures that when all government departments and parastatals are replacing their old vehicles, they go for EVs,” he said.
He said the government should also introduce incentives to encourage motor vehicle suppliers to bring more EVs onto the market and establish well-organised charging stations across the country.
The former Reserve Bank of Malawi governor said promoting electric vehicles would help reduce fuel imports, which he put at $60 million every month.
His proposal comes as Malawi grapples with one of its worst fuel crises, driven by foreign exchange shortages.
The crisis has disrupted business operations, with economists warning that it could undermine the country’s economic growth.
Kabambe also identified corruption as a major contributor to foreign exchange pressures, arguing that proceeds from corrupt activities are converted into foreign currency and transferred abroad.
“If we don’t tame corruption, which is rampant, then we will continue to struggle with forex shortages,” he said.
He further called for the revitalisation of local manufacturing to reduce reliance on imported goods, including pharmaceuticals and everyday products such as toothpaste and soap.
“We cannot continue importing products such as toothpaste and soap when, during the one-party era, such products were being produced locally,” he said.
Kabambe urged the government to move quickly to energise the manufacturing sector so that more goods could be produced locally, reducing the country’s import bill and easing pressure on foreign exchange reserves.
