16 November 2016 Last updated at: 10:22 AM

Mafunde blames government over high interest rates

Opposition Malawi Forum for Unity and Development (Mafunde) says the high interest rates in the country are a result of government’s over-expenditure.

This is coming days after Reserve Bank of Malawi’s Governor Charles Chuka blamed politicians for failing to make sure that interest rates in the country are low.

As reported by the Reserve Bank of Malawi, for the past 15 years Malawi has had an average interest rate of 25.98 percent, but the rate reached an all-time high of 75.53 percent in 2001. Currently, the country’s interest rate is at 27 percent.

George Nnesa

Slams Govt: Nnesa

Commenting on the matter, Mafunde’s George Nnesa said the high interest rates are affecting the country and government is responsible for the mess.

“The problem of high interest rate is because the government is over spending and this affects everyone,” said Nnesa.

He added that the International Monetary Fund (IMF) tells Malawi what to do because the country’s leaders do not know how to manage Malawi’s affairs.

Nnesa further said if government had allowed Reserve Bank of Malawi to be independent, the IMF would not come in to guide Malawi on what to do to improve its economy.

Recently, Malawi introduced a K2000 bank note a development which some quarters have described as a sign that the economy is not improving.

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