Dr. Dalitso Kabambe, a renowned economist and former Governor of the Reserve Bank of Malawi, has sounded the alarm on the country’s deteriorating economic situation following today’s front-page news stories.
In a stark warning, Kabambe described the economy as showing “alarming signs of sustained decline” that cannot be ignored.
The news stories highlighted the country’s K15 trillion debt and a 10% water price hike, which Kabambe cited as examples of economic mismanagement.
“Our economy is in a dire state. Inflation rates are soaring, essential goods are becoming increasingly unaffordable, and our currency’s value is plummeting. Yet, this administration seems to be in denial about the situation,” Kabambe said.
Kabambe warned that everyday Malawians are feeling the pinch, struggling to make ends meet as their purchasing power diminishes.
“The time for complacency is over; we must confront these realities head-on.”
He also predicted a devaluation of the currency, which he said would have far-reaching repercussions across all sectors of the economy.
“We have witnessed the fallout of similar events in neighboring countries; we cannot afford to be naive.”
Kabambe identified the “three cancers” plaguing the economy as monetary policy, fiscal policy, and exchange rate, compounded by corruption, misallocation of resources, and lack of strategic planning.
He urged citizens to demand accountability from their leaders, saying, “The future of Malawi rests in our hands, and it’s essential we act now to avert further catastrophe. Let us unite and challenge those in power to prioritize the well-being of our nation before it’s too late.”
As former Governor of the Reserve Bank, Dr. Kabambe played a crucial role in providing strategic direction and leadership, ensuring accurate economic advice to the government, and effectively managing fuel prices to avoid inflation.
With a wealth of experience in economics and public service, Dr. Kabambe has held various positions in the Malawi Government Economic Service, including Principal Economist, Chief Economist, and Budget Director.
