Local economic think-tank, the Malawi Economic Justice Network (Mejn), has recommended enhanced private sector productivity through industrialisation as a way of fastening growth of the economy and solving the country’s public debt puzzle in the medium to long term.
Mejn Regional Coordinator for the South Mike Banda said projects such as wheat mega farms should not be experimental but be an established production hub where local industry players must be processing commodities before exporting.
He was speaking recently in Mzimba during an interface with civil society leaders on monitoring and tracking public projects.
Banda also called on the government to reform laws that are regulating industrial hemp in the country to accommodate more small-scale farmers.
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He then called on the government to tame its appetite for borrowing except if it is for production.
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“Borrowing for consumption should be discouraged. Let us focus on something that will give us dividends and stabilise our economy,” Banda said.
A representative of Rights People Claim of the NGOs in Mzimba, Edward Nkhata, hailed Mejn for facilitating the meeting which, he said, has empowered them to track public expenditure at district level.
Nkhata further said the government should only borrow money for projects that really matter to the public to avoid inflicting pain on citizens when paying back outstanding debts.
According to a recent report from the Ministry of Finance, as of March 2023, public debt stood at K9.41 trillion.
