Economics Association of Malawi (Ecama) President Bertha Bangara Chikadza has tipped the government on measures needs it to take to help Malawi achieve higher gross domestic product (GDP) growth and graduate into a lower middle-income economy by 2030.
This comes at a time Malawi is in the course of implementing the first 10-year implementation plan of the Malawi 2063 in which it aspires to move from the list of least developed countries to lower-income economy by 2030.
The Ecama Chief said that Malawi must reduce over-dependence on rain-fed agriculture considering the high level of climate-related vulnerabilities.
Chikadza said venturing into other agricultural production means like sustainable irrigation technologies to ensure an all-time food availability and accessibility.
This, she said, would see financial resources being channelled to other productive means other than food importation.
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“Disasters have become more pronounced in recent years which means their occurrence can be predicted with precision, hence disaster preparedness should always be at the centre of policy formulation to curtail the disturbances brought forth by the same. Among others, such policies ensure hot spots,” she said.
She added that authorities need to empower local industries to add value on the raw products so that only finished products are exported to narrow the export-import gap in terms of revenue.
“Significantly reduce FDIs by encouraging portfolio investment which would check out financial resource externalisation. Evidence indicates that FDIs are a recipe for externalisation of resources through cooked means like testing the resource value, like what we witnessed in the Kayerekera uranium deal with Paladin Africa.
“Fast-track debt restructuring endeavours to keep it within sustainable levels and channel the resources to other productive sectors as opposed to entirely servicing the debt. This should be coupled with rethinking the whole economic trajectory, which among others should envisage reducing borrowing from both bilateral and multilateral partners,” she said.
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The Ecama boss further said authorities must review the current statutes governing the industrial sector.
Chikadza noted that since the adoption of the structural adjustment programmes the domestic industry has suffered perpetual blows on the face because of lack of protection.
She said a review and consequent enactment of a new legislation would see the domestic industries flourish and counter the perennial negative balance of payments (BoPs).
“Strictly follow through the MW 2063 vision especially in its MIP-1 where the takeoff projects are more pronounced. This alludes to the availability and improvement of good road networks, stable power grid, a fertile environment for investment et cetera.
“Regulate the financial sectors in an attempt to reduce the super normal profits. Essentially, what it means is that too much profits on one side entails eating on the other end, pareto optimality, which erodes the potential for investment to other market players,” she said.
Speaking when he appeared before the Budget and Finance Committee of Parliament in Lilongwe last week, National Planning Commission Director General Thomas Munthali said Malawi is unlikely to become a lower middle income country by 2030.
He observed that the country may only reach the status 15 years later if it remains on the current trajectory.
Munthali noted that a series of external crises that have spilled over to Malawi and internal catastrophes have derailed the local economy from growing at the required six percent minimum needed to reach the target.
