CDEDI pressures Mwanamvekha on forex strategy amid deepening fuel crisis
The Centre for Democracy and Economic Development Initiatives (CDEDI) has challenged Finance Minister Joseph Mwanamvekha to immediately outline a clear forex recovery strategy or step aside, warning that continued inaction is worsening Malawi’s fuel crisis and economic instability.
The group says six months into office, the government must account for its promise to fix forex shortages, arguing that failure to do so amounts to letting down both President Arthur Peter Mutharika and Malawians.
Speaking during a press briefing in Lilongwe on Thursday, CDEDI Executive Director Sylvester Namiwa said the pressure follows candid remarks by Information Minister Shadric Namalomba, who acknowledged that the country’s fuel storage facilities are empty and linked the ongoing crisis to forex shortages.
Namiwa said while Namalomba’s honesty reflects the grim reality on the ground, it has also triggered widespread panic among citizens, resulting in longer fuel queues and further weakening of the kwacha on the parallel market.
He noted that the situation directly contradicts earlier government assurances that foreign exchange reserves were improving, raising serious questions about policy consistency and transparency.
CDEDI further reminded the ruling Democratic Progressive Party that it campaigned on a promise to resolve the “4Fs”, food, fuel, forex and fertiliser, within a short period after the September 16, 2025 elections.
The group stressed that failure to act now risks eroding public trust in the party’s social contract with Malawians.
“If the minister does not have a turnaround strategy, he must step aside and allow capable leadership to take over,” Namiwa said, adding that Mwanamvekha must either prove Namalomba wrong or take responsibility for the crisis.
Beyond criticism, CDEDI has proposed a series of measures aimed at easing the forex crunch.
The organisation welcomed reports that government, through the Reserve Bank of Malawi, has sold gold purchased from artisanal miners to finance fuel imports, but urged authorities to formalise and expand the sector.
Namiwa said organising artisanal miners into cooperatives and licensing them could significantly boost gold production and generate substantial forex inflows, potentially transforming the country’s economic outlook.
He also called for the lifting of restrictions on gemstone exports, noting that Malawi possesses high-value minerals such as rubies and sapphires that remain underutilised.
In addition, CDEDI urged government to shift its economic focus from consumption to production, advocating for incentives that support export-oriented industries.
The group proposed reallocating funds from the fertiliser subsidy towards irrigation farming of high-demand crops such as soya beans, birds eye chilli, tomatoes and onions for international markets.
To ease immediate pressure on citizens, the organisation appealed for the suspension of some fuel levies and taxes, warning that without swift intervention, the crisis will continue to cripple key sectors including health, agriculture, manufacturing and telecommunications.
