Mlusu to bank on Wide consultations

Newly-appointed Minister of Finance Felix Mlusu says he will bank on wider consultations with various experts on how to grow the economy.

Mlusu is one of the five ministers appointed on Monday in a partial Cabinet announced by the country’s new President Lazarus Chakwera. Mlusu, together with Minister of Homeland Security Richard Chimwendo Banda took oath of office the same day.

The minister, who once served as Nico Holdings plc managing director and chief executive officer before retiring in 2015, acknowledged in a brief interview on Monday on the sidelines of the event that he has a huge responsibility ahead of his new task.

He said: “I am greatly humbled that I have been given this responsibility. This obviously shows the trust and confidence that the President has in me.

“It is too early to talk about the strategy that I am going to put [to reduce poverty and ensure economic growth and development] but one of the things that I will have to rely on is to consult widely from within and outside government.”

Mlusu inherits an economy that is wobbling in one of the worst economic cycles due to the negative impact of the Covid-19 pandemic and post May 21 election impasse, which have dampened economic activity and brought almost all growth sectors no their knees.

This year, the country’s real gross domestic product (GDP) will grow by a paltry 1.9 percent from the earlier projected 5.5 percent.

Economic experts, including Mlusu’s predecessor Joseph Mwanamvekha, anticipate  a possible recession by December this year if Covid-19 persists.

A recession is a period of economic decline during which trade and industrial activity shrinks and is generally manifested by a fall in GDP in two successive quarters.

Mlusi also comes at a time tax revenue collection by Malawi Revenue Authority has shrunk, effectively creating a limited fiscal space to sustain public service delivery and grow the economy.

Monthly tax revenue collections have dropped by 35 percent from K90.8 billion per month during pre-Covid-19 period to a monthly average of K59.1 billion during the post-Covid-19 period.

Said Mlusu: “I have accepted the responsibility with humility knowing that I cannot perform alone.

“I am part of the team that wants to deliver good results to the people and I commit to do just that with the rest of the team.”

Mlusu presented a provision budget for four months yesterday at the expiry of the 2019/20 fiscal year.