MCP MPs back kwacha devaluation

Members of Parliament (MPs) yesterday took turns to support the recent 44 percent kwacha devaluation by making various recommendations to stimulate the economy in the wake of the financial turmoil in the country.

The MPs presented the views as part of their contributions to the Mid-Year Budget Review Statement that Minister of Finance and Economic Affairs Simplex Chithyola Banda’s presented to the House last Monday.

In his contribution, Kasungu Central legislator Ken Kandodo (Malawi Congress Party-MCP) said it is crucial for the economy to have good political and economic governance by increasing local manufacturing.

He said: “There was a time in the 1990s when we could manufacture goods locally, but many of these factories were closed, forcing us to import the things we previously produced locally. With good economic policies, there ought to be no reversals.

“Additionally, the National Export Strategy [NES] was launched to help us improve on exports, but it is not helping us much. Let us go back to that and see what more we could do to export.”

Lilongwe South MP Peter Dimba (MCP) said Malawi is still in economic stagnation because of its own choice not to grow.

He argued that in 1991, Malawi was richer than neighbouring Zambia and Tanzania with a gross domestic product (GDP) of $5.3 billion against the neigbhours’ at $3.3 billion and $4.9 billion, respectively.

He noted, however, that in just a decade Malawi’s GDP fell to $2.5 billion in 2000 while Zambia’s and Tanzania’s grew to $6.3 billion and $13 billion, respectively.

“That happened because we stopped being serious about developing our country and because we lack discipline,” said Dimba.

Lilongwe Nsinja South legislotor Francis Belekanyama (MCP) called for creation of good environment for investments.