My advice to His Excellency APM

This is not a political corner. Yes, I admit that politics and economics are twins but politics is not my area of specialisation, neither am I a politician. However, indulge me a bit. You and me can agree on one thing: The quality of a country’s political leadership has a direct link to people’s level of personal finances and their quality of life. I am happy we agree on this.

With this background, allow me to send my sincere congratulations to the newly sworn-in President, His Excellency Professor Arthur Peter Mutharika (APM as he is popularly known). I extend the same to the Vice-President, Right Honourable Saulos Chilima.

Your Excellency, I have advice for you. This column is about personal finance management but there can be no resources for individuals and households to manage if the Malawi economy is in shambles. This is where my advice begins for you, fully aware that you have clearly prioritised to grow the economy and share the proceeds equitably – that is commendable.

To begin with, let me highlight some four key elements that support the Malawi economy: donors’ good will, agriculture, Malawians’ goodwill and God’s favour.

First, the moment you fall off with donors, you are in for big trouble. Yes, donor money comes with strings but the beauty is that, serve for a few outrageous demands, it usually reflects on the priorities defined by Malawians themselves as per their own development blue print—the Malawi Growth and Development Strategy. What donors need most is value for their taxpayers’ money. This is a test you shouldn’t fail, Your Excellency. The reason is simple: Malawi will need donors in the short to medium term. However, efforts to gradually move towards economic independence are a must because begging can be demeaning and dehumanising. But the word to watch is ‘gradual’ — get donors to be part of the economic independence drive.

Secondly, agriculture is the backbone of this country. But let me hasten to add, that it is hitherto rain-fed agriculture. This is worrisome. If no tangible strides are made on intensifying irrigation (particularly the green-belt initiative), and diversifying beyond tobacco, tea and sugar into other strategic crops like legumes and cotton as well as other high potential growth sectors like mining and eco-tourism, then Malawi will continue to face unstable tax and foreign exchange inflows.

Thirdly, Malawians are a friendly lot (hence the warm heart of Africa accolade) but they don’t like being taken for granted, especially when it comes to realising their God-given rights. When stretched to a limit, they hardly retreat. If you govern them well in practice and not in mere promise, they will give you the mandate to run the full course and will support you fulfill your plans. By the way, paying attention to governance issues is not only important in its own right but is also critical for sustaining economic growth.

Lastly, and indeed most importantly, is the continued fear of God. This will allow you to see visions. Visions on how to move forward with the economy. Visions on the economic diversification agenda. Visions on how to govern people in the best way so that their hopes and aspirations are met. There are many Malawians of goodwill that are and will incessantly pray for you—just never stop to listen to that small still voice of divine reason.

Having said all this, Mr President, surround yourself with very competent experts and advisers. Fight off the temptations of wanting to hear what you want to hear but listen to well researched advice from professionals – this is what will get this country to realise its vision of a prosperous middle income economy. The past 50 years leaves Malawi with little to show but you can leave a legacy of laying the foundation for prosperity of the next 50 years – ultimately the credit goes to you. Oh! Do also remember not to throw away the bath water with the baby —there are lots of good policies and initiatives in the economy that the previous administration initiated. Seek counsel of the experts on which ones are good for the country to retain.

Mr State President, congratulations again—the health of people’s personal finances begins with you. My family’s love and prayers are with you, Your Excellency.

Have a blessed weekend!’