ECAMA Urges Focus on Trade Over Aid
This call for action came during a budget consultation meeting Wednesday with stakeholders at the Bingu International Convention Centre in Lilongwe.
LILONGWE, Malawi - The Economics Association of Malawi (ECAMA) says the government should take a "bold step" towards promoting trade rather than relying on aid to transform the economy and earn more foreign currency, writes Leonard Masauli, MANA.
This call for action came during a budget consultation meeting Wednesday with stakeholders at the Bingu International Convention Centre in Lilongwe.
"The government needs to be aggressive to look for markets and ensure the country diversifies in producing commodities like cotton, not just tobacco," said ECAMA economic researcher Lucius Pawa.
Statistics show cotton earned huge sums globally in 2020 while Malawi only benefitted $2.2 million, Pawa said.
"This is one area where ECAMA feels the government should do more to aggressively seek markets."
Kondwani Mubisa, Oxfam's program coordinator, said Malawi needs a new diversification strategy promoting other crops like macadamia and soya to boost exports.
"We need to decentralize the registration of cooperatives nationwide to enable more farmers to join and produce more, improving exports," Mubisa said.
"The government should also invest more in rural roads so farmers can produce more and access markets, adding value to the economy."
Minister of Finance and Economic Affairs Simplex Chithyola said despite challenges, gradual 3.2% economic growth is expected by 2024 due to more foreign currency and agricultural investments.
He said the government is focused on diversifying the economy and developing a resilience strategy.
"The government has embarked on supporting private mega-farms through the Malawi Agricultural Investment Corporation to produce for local and export markets," Chithyola said.