President Lazarus Chakwera last night announced tough measures which his government has put in place to cushion Malawi’s troubled economy.
He addressed the nation immediately after the International Monetary Fund (IMF) had approved a four-year Extended Credit Facility (ECF) programme pegged at $174 million.
Chakwera said he has suspended his international trips and those of Cabinet ministers and other public officers with immediate effect until next year.
“All my international trips between now and the end of the fiscal year, beginning with my trip to [the Conference of the Parties] at the end of this month, are cancelled.
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“By extension, I am putting a freeze on all public-funded international trips for all public officers at all levels, including those in parastatals, until the end of the financial year in March.
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“In fact, all Cabinet members currently abroad on public-funded trips must return to Malawi with immediate effect,” the President said.
He added that any travel deemed absolutely necessary by anyone during that period must be submitted to his office for his personal authorisation.
Chakwera also ordered that all fuel entitlements for Cabinet ministers, principal secretaries, directors and members of senior management of public institutions should be cut in half.
To cushion Malawians from the impacts of the 44 percent devaluation of the Kwacha, Chakwera has directed the Ministry of Finance to include provisions in the upcoming mid-year budget review for supporting small and medium enterprises so that jobs are protected.
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He said he has also ordered the ministry to include in the budget provisions for a “reasonable” wage increase for civil servants.
The President further said he has tasked ministers of Finance and Trade to work with the Competition and Fair Trading Commission to investigate unfair pricing of commodities and services.
He said savings made from the austerity measures will be used for procuring food and fertiliser to ensure no Malawian family is hungry in the next four months.
The President then expressed excitement at the clinching of the ECF deal which, he hoped, would unlock foreign direct investments into Malawi.
He said following the approval of the deal, “several development partners” have lined up to help Malawi import strategic commodities such as fertiliser, medicines and industrial raw materials.
In his reaction to the address, Leader of the Opposition in Parliament Kondwani Nankhumwa said Chakwera’s declaration on international trips was “laughable”.
“He knows that there is almost no international meeting between December and February. Why can’t he say he has cancelled all international trips between now and 2025?” Nankhumwa queried.
He further wondered why the President had not said anything on local trips.
On the other hand, Catholic Commission for Justice and Peace National Coordinator Boniface Chibwana welcomed the directives by the President.
“They will save the much-needed forex and reduce expenditure. We have long waited for these measures,” Chibwana said.
