By Falles Kamanga & Bashir Al Bashir
Malawi a country blessed with natural beauty a lot of natural resources and a rich cultural heritage finds itself in a midst of a severe economic crisis.
The country is grappling with numerous challenges, with its economy in the blink of collapse. However, amidst these trying times, a beacon of hope emerges in the form of Dr. Dalitso Kabambe, an experienced economist with the expertise and track record to transform the fate of this nation.
Kabambe as former Reserve Bank of Malawi (RBM) Governor achieved several prudent monetary policies direction including;
- Achieved single-digit inflation within one year of work from 24% in January down to 7.1% by December 2017 and maintained single-digit average inflation throughout the tenure.
2. Maintained a stable exchange rate for the Malawi kwacha at MK732 to a dollar throughout the tenure
3. Raised the country’s foreign exchange reserves from less than 2 months of import cover of US$389 million to over 6 months of US$1.4 billion.
4. Reduced the policy rate from 24% down to 13.5% within 2 years.
5. Reduced Non-Performing Loans (NPL’s) for Banks from 19% to 4% within two years.
6. Improved private sector lending from negative to 19% across the board from Banks, MFI’s and Saccos.
7. Improved RBM profitability from a projected K4 billion loss in 2017 to a surplus of MK21 billion by year-end and a further surge in profits to a record of MK57 billion in 2019, a record no other RBM Governor has ever achieved.
8. Pushed up the country’s remittances from US$36 million in 2017 to US$250 million in 2019.
9. Successfully implemented the ECF program with the IMF throughout the period.
10. Improved the performance of the Malawi Stock Exchange in all its indicators.
Three years after being removed from RBM, Malawi’s inflation is pegged at 29.% while the policy rate is 24% coupled with a scarcity of forex worsening purchasing power of fuel, essential medical supplies, and among others.
Now, Dr. Kabambe is vindicated while still standing as one of the country’s successful Malawi Central Bank governors, the nation has ever had with credible monetary policy.
Malawi needs the caliber of Dr. Kabambe with sound monetary policy skills to turn fortunes at the central bank without a political eye.
But the only sin Kabambe committed to being removed from RBM was being a Lhomwe, gentile amongst Jews. Surely if Kabambe had a chance, he would have changed, but that is an unreachable aspiration for any mortal.
Unfortunately, we don’t choose where to be born.
Unfortunately, God doesn’t look at our background when he wants to bless us. Love him or loathe him, Dr. Kabambe can’t miss the top 10 finest economists of the land.
Kabambe is such a blessing to a country of fools. Men who die of thirst with their feet in the water. We are nothing but a sad tale.
We, from independent media, wish Kabambe the very best of life. Man can despise him out of hate but God has always plans for every man.
We will always miss you, Dr. Kabambe at the Reserve Bank of Malawi.
Your contributions to the Bank are priceless, indeed, quality is expensive.
Disclaimer: The views expressed in the article are those of the author and not necessarily of The Maravi Post or Editor
