By Mercy Matonga:
Opposition political parties in the country have urged the government to improve its fiscal and monetary policies to resolve the fuel issues currently facing the nation.
The Democratic Progressive Party (DPP), People’s Party (PP) and Alliance for Democracy (Aford) have all emphasised the need for enhanced fiscal and monetary policies.
DPP secretary general (SG) Peter Mukhito claimed that the fuel challenges are largely a consequence of the government’s own monetary indiscipline.
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“Implement strict fiscal policies to stabilise the currency, which should include reducing domestic borrowing to avoid crowding out the private sector and further straining financial markets.
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“Promote investment in renewable energy and diversify energy sources to minimise reliance on imported fuel. This could be achieved by offering incentives for the development of solar, wind and other renewable technologies,” Mukhito said in a message to the government.
He added that increasing transparency and accountability in the fuel importation sector would help prevent corruption, which allegedly contributes to supply shortages.
For his part, PP SG Ben Chakhame said the current situation is due to a lack of effective planning or a failure to adhere to existing plans.
Chakhame insisted that the government should set aside its pride and seek wisdom and guidance on how to manage national affairs for the betterment of Malawians, especially the poor.
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“Treasury management is key for the smooth operation of any institution, including government. No single person should deceive themselves into thinking that we can have foreign exchange in this country, as we faced a similar situation from 2010 to 2011, which was even worse.
“However, during the PP regime, we managed to reverse the situation within 100 days and it became a thing of the past,” Chakhame said.
Aford, through its spokesperson Saulos Thindwa, claimed it has key pillars—food, fertiliser, foreign exchange and fuel—that, if implemented, could not only resolve the fuel crisis but also improve the country’s economy.
“The 4Fs formula promotes the sustainability of food production and security, resulting in bumper yields that will ensure adequate food availability at the household level, with surplus sold outside the country.
“The surplus sales will generate sufficient foreign exchange, which will be used to purchase adequate fuel, with some retained in our reserves,” Thindwa said.
In response to the suggestions, government spokesperson Moses Kunkuyu insisted that the confidence reportedly expressed by Malawi’s major cooperating and donor partners, such as the World Bank, International Monetary Fund and European Union, “best describes the monetary management systems of this government”.
“There has never been a permanent solution to the fuel situation in the country. That is why, despite all the efforts made by the late Bingu wa Mutharika, he still suffered from fuel scarcity. If we learn only from temporary solutions, then we are simply reiterating what we already know.
“We must, as a country, support the strategies of this government that are enabling us to endure the pain of our problems while we build permanent solutions, rather than relying on the cosmetic solutions we have had for the past two decades,” Kunkuyu said.
Since at least mid-2022, Malawi has faced sporadic fuel shortages.
According to the government, these disruptions are generally attributed to delays in oil imports due to limited foreign currency and logistical inefficiencies in transportation.
In a recent contribution to discussions by Times Television on the fuel crisis, former president Joyce Banda, who managed to address the problem during her tenure, said she used her networks and those of her ministers to tackle the issue.
“I had my own networks and that worked to our advantage. That is why within 100 days, we managed to address the fuel problem.
“When you have a problem, you reach out to your networks and they help. They helped us with fuel,” Banda said.
Meanwhile, during last week’s press conference on the fuel situation, Malawi Energy Regulatory Authority Chief Executive Officer Henry Kachaje fell short of providing a clear timeline and cutoff point for the crisis.
