Entrepreneur welcomes Kwacha Appreciation

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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.

Peter Yakobe

Yakobe says the news is welcome.

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.

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21 Comments

  1. This is what we want to hear from you the Malawi media. Some of us we are not there. Not every day hearing about opposition against ruling government. Thanks for this.

  2. Will increase imports much more than already negligble exports.Mind you;our goods have hence become more expensive than the neibhours.See how cheap the cement is from neighbouring countries for instance.

  3. How does Kwacha appreciation attract more investors??? What it means is that the dollar is depreciating. Attend an economics class!!!! Eeeeish

  4. We are leaving in a country where contradictions become part of life. Remember the president bragging that he is the sole financier of his party while Kasaila said something different. Who is fooling who here? After all appreciation of the kwacha may not be the only condition for attracting foreign investors. Think of power outages, security, cotruption…

  5. Others they r saying that kwacha z depreciating while others they r saying kwacha z appreciating whose talking de truth ???

  6. This is a gvt that can promise and fail to deliver,lets wait 4 2019.The kwacha is the worst currency in the world,even Zimbabwe is better off now!

  7. Thats contradicting statement. The President on Voice Of America admitted the kwacha is depreciating and someone saying is appreciating. Who is saying the truth?

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