The Employers’ Consultative Association of Malawi (ECAM) and the Malawi Congress of Trade Unions (MCTU) have issued a stark warning about the disastrous consequences of Malawi’s fuel crisis, which it says is wreaking havoc on the economy, causing job losses, and pushing businesses to the brink.
In a statement, ECAM and MCTU expressed concern that the fuel shortage has resulted in a significant decline in productivity, as businesses struggle to operate without a reliable supply of fuel. The exorbitant costs of fuel on the black market have led to increased transportation costs for workers and a rise in unemployment.
“This persistent fuel crisis is severely disrupting daily business operations throughout the country,” said the two organizations. “Many companies are struggling to maintain their production schedules, resulting in reduced output and financial losses. Moreover, businesses are being forced to downsize their workforce, leading to job losses and rising unemployment rates.”
The two organizations warned that if the fuel crisis is not addressed promptly, it will have far-reaching consequences for Malawi’s economy, including obstructing the achievement of the Malawi 2063 Vision.
ECAM and MCTU challenged the Malawi Government to take immediate and decisive action to address the fuel shortages by enhancing fuel distribution systems, increasing transparency around fuel availability, and prioritizing foreign exchange for fuel imports.
The two organizations also urged employers and employees to unite through social dialogue to develop innovative solutions to mitigate the fuel shortage’s impact on productivity and employment. “We must implement flexible working arrangements to ease the burdens faced by workers and adopt effective cost-saving measures to protect jobs.”
