By Lovemore Khomo
Democratic Progressive Party-DPP Spokesperson on Budget and Finance Joseph Mwanamveka has described the 2024/25 economic growth projection as unrealistic because of the hardships the economy faces.
Mwanamveka responded to the Budget Statement on Monday presented by Minister of Finance Simplex Chithyola Banda three weeks ago in Parliament who projected the 2024/2025 economic growth by 3.2 percent and 4.8 percent, respectively.
The finance minister said the projected superior performance was attributed to large-scale mega-farm output andanticipated high growth in construction, manufacturing, information and communication, and accommodation and food services.
But his predecessor Joseph Mwanamvekha dismissed the projection saying, “It is unrealistic and overly optimistic to believe that Malawi will be an exception especially considering that most companies in Malawi are scaling down production due to falling domestic demand caused by dwindling disposable income.”
Mwanamveka again said it is an overly optimistic to believe that the Malawi economy will grow as projected despite the prevailing high interest rates.
He asked,”Which companies (both manufacturing and trading) are going to borrow at those high rates, madam Speaker?”
He expressed concern over the prevailing shortage of foreign exchange which he thinks will continue to weigh down economic activities in the manufacturing and trading sectors such that even though there is a slight improvement in the availability of foreign exchange, most of the manufacturing companies and traders will continue to face difficulties in accessing foreign exchange because of an increase in foreign exchange demand emanating from elections related imports.
“The demand for foreign exchange is expected to increase in the short to medium term as Malawi Electoral Commission (MEC), political parties and aspiring candidates intensify the importation of election-related campaign materials in preparation for the September 2025 general election.” said Mwanamveka.
The DPP Budget and Finance Spokesperson who titled his response statement as ‘Hypocrital and Deceitful Budget that is Dead on Arrival’ added that,”living in Malawi is like living in hell”.
“With the two major currency devaluations which puts the Kwacha at K 1,700/US$ on the official market and K 2,400/US$ on the parallel market; inflation at 35 percent; the policy rate at 26% coupled with foreign currency shortages and Government debt hitting as high as K 12.56 trillion, therefore life has become unbearable.” He added.
The 2024/25 National Budget is pegged at K5.98 trillion with a big share allocated to the Health, Education and Agriculture sectors.
