Malawi Chambers of Commerce and Industry (MCCI) feels the past two and half years, Malawi Kwacha has been stable to due to donor aid.
MCCI Chief Executive officer (CEO), Chancellor Kaferapanjira revealed this Thursday during the panel discussion at the official launch of the Malawi Growth Development Strategy (MGDS) III mid-term report at Bingu International Convention Centre (BICC) in Lilongwe.
He said the country was able to import and export goods because it was using donor support to maintain the strong exchange rate of Malawi Kwacha.
“Malawi Kwacha has been stable for a long period at K750.00 per 1US$. The stability of the Kwacha was not as a result of domestic production and able to export to other countries but the Kwacha was stable due to debt the country was receiving,” the CEO observed.
Kaferapanjira noted that the foreign change was not being supported by the production sector of the country’s sector.
“We were making the exchange rate strong from debt aid which was not necessary making the current account to balance. We had a strong exchange rate but we were unable to import goods,” he pointed out.
The CEO said as a result the country was not gaining on domestic production to support the country’s production capacity to export more goods.
He said manufacturing should help the country to be able to generate foreign exchange which could drive the economy.
Kaferapanjira said the foreign aid was used to fund consumption and its effects made the Kwacha to be strong while we were failing to exports our products.
Panelist on Governance Sector, Dr Henry Chingaipe said there was need to develop clear guide lines for Non- Governmental Organizations (NGOs) to account for the funds they are investing in the country.
He said there was a gap within the NGO sector where they are not able to account for what they are offering to Malawian communities in term of development activities.
“The issue of accountability and transparency should cut across all sectors in the country. We are looking at financial resources which need to be account for,” Chingaipe added.
Source: MANA Online