The immediate past Governor of the Reserve Bank of Malawi, Dalitso Kabambe, has expressed surprise following reports of the country’s central bank making losses.
Speaking during a public lecture held at the Catholic University of Malawi on Thursday this week, the former boss of the central bank said that during his tenure the bank was sailing in profits.
“I am even surprised that RBM [Reserve Bank of Malawi] today is making losses. When I was there, the bank had been making profits, and the same was happening with my predecessors,” said Kabambe.
Media reports reveal that the Reserve Bank of Malawi (RBM) made a K539 billion loss in the 2023/24 financial year due to foreign exchange rate losses.
Further, reveals that the bank made exchange rate losses on its foreign liabilities totalling K708.6 billion as a result of the 44 per cent kwacha devaluation affected in November 2023.
On the International Monetary Fund (IMF) liabilities alone, the bank made exchange rate losses worth K252 billion.
During the public lecture titled “Transformational Economic Agenda for Malawi: Focusing on Sustainability and Equity,” the former governor shared his proposed seven-point plan to turn around the country’s economic fortunes, suggesting a thin central government that leaves resources to district councils.
Kabambe further proposed some industrial programmes that can boost production to create a vibrant industrial base that can support economic transformation.
The Catholic University of Malawi, through its Directorate of Research and Publication, hosted the public lecture that brought together departments of economics and political sciences at the university to coordinate the lecture that pulled a large following on live-streaming channels and local television stations.
