By Burnett Munthali
The current economic situation in Malawi is very bad and needs an immediate overhaul or else the nation is heading for disaster.
Millions of families are struggling to make ends meet. Businesses are falling and closing down indefinitely as customers are also failing to buy sufficient basic needs due to the devaluation of the local currency.
Customers at present do not have the buying power of what they need.
Almost everyone is on the edge of a failing cliff. However, government is still removing the rubble and fixing what they call broken systems.
Tonse Alliance Government keeps telling people to wait patiently but time seems to be running out on the side of the voter.
Elections are just around the corner when another campaign list will be released and given out to the people of Malawi.
Poor farmers are also struggling to get farm inputs for their crop production.
The supply chain of staple food, in particular, has been broken down tremendously in 2023 and as such, there are fears millions of people may starve as the country’s staple food continues to do exorbitantly.
There are many effects of economic difficulties. Increased unemployment, loss of income and increased vulnerability have been among the dominant social impacts of the crisis.
The signs of an economic recovery are a decrease in unemployment, an increase in consumer spending, incomes rising, an increase in the gross domestic product (GDP), and improved business activity.
We need high economic growth leading to increased profitability for firms, enabling more spending on research and development.
This can lead to technological breakthroughs, such as improved medicine and greener technology. Also, sustained economic growth increases confidence and encouraging firms to take risks and innovate.
Opportunities and challenges for each archetypal approach invest locally. We must identify and support industries that will drive economic recovery as a nation.
Malawi must promote domestic spending through cash-transfer programmes.
The nation should protect local businesses from foreign competitors.
The warm heart of Africa must safeguard industries that are vital to national security.
The nation must promote exports.
Apart from improving external debt relief initiatives, designing state-contingent debt instruments (SCDIs) can help Malawi improve liquidity and debt sustainability in times of crisis and better share risks between borrowers and lenders.
