A local entrepreneur has welcomed the appreciation of Malawi Kwacha against major international currencies saying the development will attract more investors.
Kwacha is now trading at K559 against American dollar from K615 in authorised currency dealers in the country.
The entrepreneur who is also executive director for Centre for Free Market Enterprise (CFME) Peter Yakobe said each time the Kwacha appreciates it is good news for the entrepreneurs in the country.
“We know we will buy raw materials at a low price thereby making profits at the end,” said Yakobe.
He advised government to reduce expenditure in order to maintain stability of the currency.
“Government need to reduce the size of its fiscal deficits and expenditures to maintain a tight monetary policy until inflation can be brought down to a lower level”
“In the long run our challenge should be to improve competitiveness so that we can generate additional sources of export earnings. This will mean improving economic infrastructure, power and transport sector, building human capital through education and skills training,” said Yakobe.
The entrepreneur also refused to describe the Kwacha depreciation as a crisis arguing that the trend happens every year because the country depends only on tobacco as a forex earner.