LILONGWE-(MaraviPost)-The United Transformation Movement (UTM) President Dr. Dalitso Kabambe has urged the Malawian government to reform the country’s tobacco pricing mechanism and exchange rate system.
According to Dr. Kabambe, the current system is exploitative towards farmers, who are paid in Malawian kwacha at an unfairly low exchange rate despite selling their tobacco in U.S. dollars.
Speaking at a press briefing at the UTM headquarters in Area 10, Lilongwe, Dr. Kabambe described the practice as “criminal.”
He highlighted the tragic case of a farmer who recently died from high blood pressure allegedly due to frustration over low tobacco prices at Chinkhoma Auction Floors. This incident, Dr. Kabambe said, underscores the urgent need for reform.
As a seasoned economist and former Governor of the Reserve Bank of Malawi, Dr. Kabambe’s call for reform carries significant weight.
His experience in managing the country’s foreign reserves, issuing and managing the country’s legal tender, and formulating macro-prudential policies positions him well to offer solutions to Malawi’s economic challenges.
The UTM president’s proposal aims to address the longstanding issue of farmer exploitation and ensure fair prices for tobacco farmers.
With Malawi’s economy heavily reliant on agriculture, reforms in the tobacco sector could have a significant impact on the country’s economic stability and growth.
Dr. Kabambe’s advocacy for change comes as Malawi continues to grapple with economic challenges. As the leader of the UTM, he is poised to push for policy changes that benefit farmers and the broader economy.