Malawi’s economy stuck in the mud

Apr 14, 2016 Business 31
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Goodall Gondwe and Peter Mutharika

Following natural disasters that have hit the country for the past two years, the Malawi’s economy is said to be at door of the emergency ward.

In 2015, the country experienced deadly floods that washed away the country’s agricultural crops, a main source of Malawi’s Gross Domestic Product (GDP).

Due to flooding during the 2014/15 agricultural season, 3 million were estimated to be food insecure.

The flooding that hit the country was followed by El-nino that led to persistent dry spells in most parts of the country in 2015/16 agricultural season.

Goodall Gondwe and Peter Mutharika
Whats wrong?Gondwe seems as asking Malawi President, Peter Mutharika. (Library).

The effects of persistent dry spells will force the country to register a drop of 12 percent in its maize harvest.

According to the country’s central bank, Malawi’s economy was said to grow by 5.1 percent.

The factors that were said to boost the economy are improved investor confidence, favourable weather conditions, higher agricultural exports, lower inflation and moderate interest rates.

According to a report from the African Economic Outlook as compiled by Peter Mwanakatwe and Gebrehiwot Kebedew, growth momentum in Malawi was expected to resume in 2016.

However, the World Economic Outlook Global estimates Malawi’s economic growth to rise from 3.1 percent in 2015 to 3.4 percent in 2016 and 3.6 percent in 2017, stating that global economic growth will be gradual and that will have an effect on Malawi as a developing country.

Minister of Finance Goodall Gondwe has been asking for more patience on the Peter Mutharika led government towards revamping the economy.

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31 Comments

  2. Amalawi kulalata kwambiri mupindulanji ?perekani nzeru zabwino kwapresident osati kumangonyoza …..kodi njala yayamba lero? Kapena mu ulamuliro was peter ? Nkhalani ndi khalidwe ……kulalatako mesa ndi nkhuto umenewo

  4. The way out from food crisis in Malawi and parts of Africa are:

    Step 1.
    Season- analysis, this can be done by adapting new trends of raining seasons. Try to compare how much rain, when, why, and how to improve the situation?? eg,, by constructing water reserviours in dry places to keep water year round farming.

    Step 2
    Now that you have finished your feasibility studies, you can at least choose which way, and how to improve seasonal and cyclical harvest per crop and per district. Eg by equiping farmers with new technology style of farming as a whole, in all animal and crop husbandry sectors

    Step 3
    Civic educate the citizens. I believe learning is a process which doesn’t just take a single day but rather stages and ages.
    Improve the traditional mindset of many farmers not to be resistant towards the new ways of farming.
    Motivate them by incentibising the farmers to better adopt changes, teach them different farming system and crops..to avoid mono dependency, like only relying on maize thus it a crisis today.

    Governments and non governmental orgs are suppose to be funding the shifting type of farming.

    One of the subjects to be learnt are:
    *Population reduction,
    *Pollution reduction by attaining new ways of manufacturing.
    *Women empowerment
    Impacts of HIV/ ADS on farming.
    More and more…

    Step 4
    Silly spending by government officials. Malawi has nothing as a country but Me have every thing money can buy.
    Those trips only to intertain and strengthen your romance on citizen’s expence is a red carded behaviour, please Mr president find in your heart that you are killing your people.

    As per my thinking on this, your country is poor so we do not expect you to have luxurious dinner in top restaurants in the USA or showcase your self.
    Invest in agriculture and reduce bomberstic words in in English rather bring food on the table for people. It is only in farming language that any one can participate.

    I love malawi
    Thank yu
    Khester kajima

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  7. the problem is with these two old guards the min. of finance and the president himself clinging to govern yet they know that they are not capable to this new phoenominon

  9. God has away no matter wat? Stop criticising urself.in 80,s Ethiopia experienc de same problem nkumatiso bola ife poti mvura yagwa koma 3yrs with no rain can u imagine.

  10. God has away no matter wat? Stop criticising urself.in 80,s Ethiopia experienc de same problem nkumatiso bola ife poti mvura yagwa koma 3yrs with no rain can u imagine.

  14. Ulamulilo ukakhala ovuta njala simachoka amalawi tizazindikila riti ulamulilo opatsa nkhalamba kuti atilamulile timadzakuwa iri pamwendo

  21. Malawi does not have a ‘food crisis’, it has a ‘maize crisis’. Since the end of WWII, Malawian farmers have been encouraged to eradicate crop diversity in favor of one monocropped harvest of maize (a Central American crop). Despite Malawi having a tropical 12-month growing season, maize is generally harvested in April, meaning that the majority of fields do not yield ‘food’ for 11 months out of the year. Maize is planted in December at the beginning of the rainy season, and while farmers are waiting until April for this crop to mature the maize harvests from the previous season often run short, creating what has come to be known as Malawi’s annual ‘hungry season’. Ironically, this ‘hungry season’ occurs in the midst of Malawi’s most agriculturally productive time of the year–the rainy season. When crops are diversified to reflect all of Malawi’s 6 food groups, when perennial crops are mixed with annual production to ensure access to highly-nutritious, seasonal, and year-round foods, and when maize is not seen as the ‘only food’, then this ‘hungry season’ actually becomes a time of surplus and abundance. Malawi does not need to continually face these ‘crisis’ situations, but it will take the will of a nation to say enough is enough.

    For farmers who have put agroecological methods into practice, even the ‘dry spells’ of the last couple years have not led to disaster. The two pics below were taking on the same day (Feb. 10, 2016) within 100 meters of each other, and both fields received the same amount of rain. The top pic is a typical monocropped maize field, and the bottom pic is a diversified agroecological production system. The results speak for themselves. Solutions exist!

    5. Why does the malawi president as a professor think like Nordin ? We hav Think Tanks in malawi ,surely who can take malawi to hire level.Why 36% of malawians hired mtchona to be a president.I dont see any Leadership Professorship in this man.In the run up to General Elections,we had more capable presidential Candidates than this Monarch.We had John Chisi, Kamuzu Chibambo, Hellen Sighn to mention just three. But the Monarchical 36% opted for Mtchona.The man who failf to perform in all Ministrial duties.We see the results of a failed man and has turned malawi to be a failed state.

    8. Clement Vll , The Times reported that the main aim of the ‘Greenbelt Initiative’ is to produce “a million tonnes of maize and beans”. This only represents two of Malawi’s 6 food groups and reinforces the over-reliance on maize as the only staple food. Malawi literally has hundreds of foods that can be grown throughout the year even without the need for expensive irrigation schemes. Diversity holds the solutions for a sustainable and healthy future.

      http://www.times.mw/government-challenges-gbi-to-produce-1-million-tonnes-of-maize-beans/

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