By IOMMIE CHIWALO
The Centre for Democracy and Economic Development Initiatives (CDEDI) has said that Malawi is in sad state because of President Lazarus Chakwera’s appetite for extravagance with his costly globe trotting and failure to solve the chronic forex shortage that has characterised his administration, true to the notion that bad politics make bad economics.
In a press statement signed by CDEDI Executive Director, Sylvester Namiwa has since challenged all Malawians who wish this country well to unite and implore upon the President Chakwera to admit that his administration has performed poorly, and caused this suffering of Malawians which a truly wise and caring government could have avoided at all cost.
“Being a servant leader that Chakwera has claimed to be, we expect him to humble himself, and step down. He has been the captain of this ship which is sinking because of his cluelessness,” he said.
Namiwa has said with the revelation that the Malawi Government owes fuel suppliers about K800 billion in compensation losses, no sane person would fail to see that a ticking bomb has been set, and it will surely explode sooner than later.
He said, sadly, the situation is worsening in the eyes of a duly-elected President, Lazarus Chakwera, who has led a government in the past four years, and must take responsibility over this unprecedented mess.
Namiwa points that another devaluation of the Kwacha looms large barely eight months after the 44 percent undertaken in December 2023.
According to the CDEDI leader, details have emerged that the MCP government has cluelessly been avoiding fuel adjustments since November 2022, resulting in the current imbalance in the fuel sector, where suppliers were forced to sell the commodity at less than landing cost.
“Simply put, unless the country finds a lasting solution to the forex challenges, it will continue being tormented by problems of fuel, food and fertiliser. It is now crystal clear that Chakwera’s indifference to the plight is threatening the dignity and survival of the same people he took oath to protect,” he said.
CDEDI has, therefore, called for the Chakwera”s self-examination and appreciation that being forced out of office through protests gives no one honour; hence, he must act in a manner that accords him honour, or do the needful to remain dear to
Malawians.
“Needless to say that increase in fuel prices will have far-reaching consequences such as killing the already struggling local manufacturing industry, leading to mass retrenchments, which will surely accelerate crime in the country,” he said.
Namiwa has also taken a swipe on opposition Democratic Progressive Party (DPP) for sleeping on duty as it has failed to provide an effective opposition, this far.
“As indicated in its statement dated August 28, 2024, DPP was privy to developments at Mera, but slept on the job until being awakened by calls for fuel price hike from some quarters. That said, let us not be passive citizens as Malawi, which is the only country we call home, is being destroyed beyond redemption,” he said.
The anticlimax of it all is the unsustainable public debts accounting for 91 percent of the country’s
Gross Domestic Product (GDP). This, coupled with the looming fuel price hike, will bring too much pain on the country’s majority poor.
Meanwhile it has been established that Malawi is in this mess because the Tonse Alliance-led
administration has been insensitive to the dictates of the automatic fuel pricing mechanism, which mandates the Malawi Energy Regulatory Authority (MERA) to adjust fuel pump prices according to the prevailing value of the local unit, the kwacha and changes in the world petroleum prices, mostly influenced by the geo-political situation.
Now, as it stands, the Malawi Congress Party led government has two options, namely getting funds from the public kitty, which is already weighed down by public debt staggering at K18 trillion or increase fuel prices, which will trigger increase in prices of goods and services particularly food, transport and accommodation and, by extension, push up the already high inflation.
CDEDI fears that the decision on fuel price hiking will entail nothing but more suffering for
Malawians, notably the ultra-poor.
