Reserve Bank of Malawi speaks on eco growth constraints

The Reserve Bank of Malawi (RBM) said the local economy has remained vurnerable to various shocks for years due to its historical overdependence on agriculture as its mainstay.

RBM Governor Dalitso Kabambe said Malawi’s economy could extremely grow if the country diversified its revenue base.

Kabambe was speaking when opening a two-day media training on economic reporting for journalists in the Northern Region.

He said revamping the mining and tourism sectors could help improve the country’s economic growth prospects.

Kabambe said whenever the country is hit by climatic shocks, the economy is shaken.

“Our economy has stabilised and we know that this gives a window for productivity. However, the challenge is that the country only depends on agriculture which sometimes faces a lot of challenges such as drought and floods.

“If we can venture into mining, tourism and others sectors, Malawi’s economy can improve,” Kabambe said.

Countries such as Rwanda, Kenya and South Africa have capitalised on tourism and their economies are growing substantially.

He said journalists have critical a role to ensure there is adequate, accurate and reliable information on monetary issues to minimise fake news.

“As a fourth arm of government, you have a role to inform and educate Malawians on how the country’s economy is fairing. This is so because right choices and decisions can be achieved after the right information is given.

“The smarter the journalist you come, the better the society. In financial reporting quality of information matters,” Kabambe said.

Information published on the African Development Bank (AfDB) website recently categorised Malawi among the world’s poorest countries facing some of the worst economic and financial risks arising from climate change.

Malawi has, in recent years, been affected by weather related shocks, which in turn affected growth projections.

Agriculture remains key to Malawi’s economic growth and development. It contributes nearly 30 percent of gross domestic product, employs over 64 percent of the country’s workforce, and provides over 80 percent of the country’s export earnings