Economists find gaps in national recovery plan
The Economics Association of Malawi (Ecama) has warned that the proposed National Economic Recovery Plan (Nerp) may fall short unless government addresses weaknesses in growth, foreign exchange management, spending priorities and implementation. Presenting the association’s analysis during a packed national consultative workshop on the recovery plan in Lilongwe on Wednesday, Ecama president Bertha Bangara-Chikadza said … The post Economists find gaps in national recovery plan appeared first on Nation Online.
Black News 
The Economics Association of Malawi (Ecama) has warned that the proposed National Economic Recovery Plan (Nerp) may fall short unless government addresses weaknesses in growth, foreign exchange management, spending priorities and implementation.
Presenting the association’s analysis during a packed national consultative workshop on the recovery plan in Lilongwe on Wednesday, Ecama president Bertha Bangara-Chikadza said while the draft Nerp correctly identifies Malawi’s economic challenges, it falls short on the reforms needed to tackle their underlying causes.
“The country’s economic problems stem not only from external shocks and macroeconomic instability, but also from deep-seated structural weaknesses, including low productivity, weak export diversification, persistent governance failures, inefficient public spending and limited private-sector competitiveness,” she said.
The association observed that despite government identifying Agriculture, Tourism, Mining and Manufacturing (ATMM) as key growth sectors, public investment remains heavily concentrated in agriculture.
Instead, Ecama proposed a deliberate shift towards sectors capable of earning foreign exchange, including tourism, mining, horticulture and value-added manufacturing.
The association argued that fiscal consolidation should focus not only on reducing expenditure but also on addressing leakages arising from procurement inefficiencies, tax evasion, corruption and illegal mining.
Ecama’s position echoes concerns raised by Reserve Bank of Malawi Governor George Patridge, who told the workshop that Malawi’s forex pressures are rooted in deeper macroeconomic imbalances.
Speaking at the same event, Patridge argued that rapid money supply growth, excessive borrowing and fiscal deficits have increased demand for foreign currency faster than the economy’s productive capacity.
“Fifty-one percent money supply growth while your GDP is growing at less than two percent tells you a lot about the pressure that you are putting on foreign exchange in terms of demand,” he said.
While the draft plan proposes ambitious interventions, Ecama warned that high debt levels, limited fiscal space and growing interest obligations could undermine implementation unless additional private-sector investment is mobilised.
That view was reinforced by Bankers Association of Malawi representative and NBS Bank chief executive officer Temwani Simwaka, who argued that capital markets should play a greater role in financing long-term development.
“Where banks are unable to finance long-term projects, the Stock Exchange is in the right position to mobilise resources,” he said.
The post Economists find gaps in national recovery plan appeared first on Nation Online.
