Standard Bank says open discussion key to growth
Standard Bank Malawi plc chief executive Phillip Madinga says creating a forum for dialogue and open discussion is the bank’s new initiative to generate consensus on how to spark economic recovery and growth.
He said in a statement on Tuesday following a closed-door meeting the Malawi Stock Exchange-listed bank hosted in Lilongwe attended by Cabinet ministers of Finance and Economic Affairs and Trade, donors, government economic agencies and the private sector.
Said Madinga: “The negative impact of combined shocks to the economy, macroeconomic instability characterised by devaluation of kwacha and high interest rates, debt distress, the widening of trade deficit and lack of accountability and governance as some of the key challenges we face and require urgent collective action, hence this forum which is in its second year.”
In a communiqué after the meeting, stakeholders also proposed a 100-day window for the government to act on the key proposals such as safeguarding the International Monetary Fund (IMF) Extended Credit Facility (ECF) and providing public finance accountability, among others.
Old Mutual Malawi plc group chief executive officer Edith Jiya is quoted as having outlined foreign exchange liquidity management framework, minimum farm-gate pricing, revision of minimum wage following the kwacha devaluation and consistent regulatory environment as key issues requiring urgent action.
European Union Head of Delegation Rune Skinnebach said Malawi faces a litmus test to adhere to the conditions of the IMF ECF programme in the shortest possible time.
Minister of Finance and Economic Affairs Simplex Chithyola Banda said government will stick to fiscal discipline.
