By Chimwemwe Mangazi:
Secretary to the Treasury Betchani Tchereni has reiterated the need to employ both fiscal and monetary policies that ensure enhanced food production to contain rocketing inflation.
His sentiments come after the Economics Association of Malawi (Ecama) and the Centre for Social Concern urged authorities to work towards ensuring fiscal prudence.
In an interview, Tchereni said the first step towards containing inflationary pressure remains addressing food supply side bottlenecks.
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“These are very pertinent areas to consider for containment of inflation in Malawi. That inflation is a monetary aspect has been believed by many in both central banks and, of course, among commentators and multilateral institutions. One side that keeps on being forgotten is the supply side,” he said.
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Figures from the Reserve Bank of Malawi show that food inflation rose to 43.5 percent in December from 30.5 percent in January 2023, representing a 13-percentage point increase last year.
Overall, inflation increased by 8.6 percentage points to 34.5 percent in December from 25.9 percent in January 2023.
The government has been seen to be seeking refuge in a number of large-scale maize production projects to increase supply of the staple crop.
Asked on how much maize is expected from all the initiatives, Minister of Agriculture Sam Kawale said a proper crop estimates assessment will be conducted in March.
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In an earlier interview, Ecama Vice President Bertha Chikadza said the government should intensify mass agricultural production.
Another economist Marvin Banda added that the abolition of non-performing government programmes such as the Affordable Inputs Programme and increased taxes is key to success.
