Chakwera has killed the economy, says DPP
The opposition Democratic Progressive Party (DPP) says President Lazarus Chakwera has killed the economy and Malawians have lost hope.
In a statement signed by the party’s spokesperson Shadreck Namalomba, DPP notes that all economic indicators are showing a negative trend.
“Inflation is 33.8% while food inflation is over 40%. Prices of all goods and services have increased astronomically. People are scrambling for essential commodities such as sugar, which is selling at over K3,000 and even higher by some traders. In contrast, DPP administration left inflation rate at a single digit of 8% in 2020. Chakwera administration has also increased interest rates in the bank. Reserve Bank of Malawi has hiked the policy rate to 26%. DPP left the policy rate at 13% in 2020. Currently, cement is selling at K25,000 per bag,” he said.
Namalomba also added the country is in deep crisis because of rising debt.
“Domestic debt and external debt have passed K13.1 trillion. Chakwera administration is running government on borrowed funds. Tonse alliance continues to borrow for consumption to finance Chakwera’s appetite for travel. Such high borrowing means that private sector and businesses are crowded out and cannot access cheap loans. DPP left public debt at K4 trillion in 2020. This means that in 4 years alone, Chakwera administration has borrowed over K10 trillion. This huge debt burden is killing the Malawi economy,” he said.
Further, Namalomba also took notice of how people are losing jobs.
“Sadly, the promise to create 1 million jobs has become a big lie. Malawians are losing jobs as businesses are closing. ADMARC was closed and they are struggling to reorganise it. Power Market Limited was closed. Peoples Superettes have closed. The list is long! Malawi is losing 1 million jobs instead of creating jobs. Government cannot even pay youths on internship on time, a programme that DPP administration initiated but Chakwera is mismanaging it. Instead Tonse administration is sending youths to Israel at a time the country is at war.”
“The Chakwera administration is also pathetically clueless on how to manage monetary policy. The 44% devaluation of Kwacha has been disastrous with multiple negative ripple effects on the economy and welfare of the people. This was a careless devaluation which has pushed millions of Malawians into deeper poverty. Kwacha is at K1700 to 1 US$, and it is selling at over K2000 on the parallel market.
“DPP managed the economy well and left the Kwacha at K700 in 2020. Forex reserves have dwindled to dangerously low levels of sometimes less than 1 month of import cover. MCP and Tonse have mismanaged the economy to the extent that the US$282 million realised from last season’s tobacco sales could only last 34 days! Hospitals are running out of essential medicines because Chakwera cannot see the need to manage forex well.
In comparison, DPP government managed forex well such that in 2020, Malawi was sitting on highest levels of forex with 6 months import cover.”
