• Mon. May 20th, 2024

How Malawi’s President Lazarus Chakwera is tackling inflation and low wages

Malawi’s President bans himself, other government officials from foreign tripsThe decision by President Lazarus Chakwera was said to be aimed at cutting public spending and helping the nation’s economy.“Any travel deemed absolutely necessary by anyone during that period

Malawi is facing a tough economic situation, with inflation reaching 9.3 percent in September 2022, the highest in the Southern African Development Community (SADC) region. The rising cost of living has also affected the public sector workers, who have been demanding a salary increment to cope with the situation.

In response to these challenges, President Lazarus Chakwera has announced a series of measures to control the use of funds in government and ensure fiscal consolidation. In a televised address on November 15, 2022, the President outlined the following actions :

  • He has suspended foreign trips for himself and cabinet members for the remainder of 2022, except for three essential trips and some emergency situations.
  • He has reduced fuel allowances of senior government officials by 50 percent.
  • He has ordered that no new contracts should be awarded or renewed in government ministries, departments and agencies unless approved by his office.
  • He has forbidden the renewal or signing of new employment contracts in all state-owned enterprises, except for special circumstances that must be approved by his office.
  • He has restricted the number of people in a delegation travelling abroad and the class of travel for ministry officials.
  • He has limited the number of board meetings for state-owned enterprises and statutory corporations to four per year, unless allowed otherwise by his office.
  • He has banned the payment of top-up allowances to public officers on fully funded trips for work, training, workshops, or conferences.
  • He has mandated that all public officers authorized to self-drive must have an authorization card to be enforced by the police.
  • He has required that all procuring entities in the government must provide proof that the goods and services they want to import cannot be procured locally.

The President said that these measures are aimed at saving money and improving efficiency in the government. He also said that he plans to increase the salaries of civil servants to ease the cost of living. He added that the measures cannot be amended by any government entity without prior approval from his office.

The President’s announcement has been welcomed by some analysts and civil society groups, who have praised him for showing leadership and accountability in the face of the economic crisis. However, some critics have questioned the effectiveness and sustainability of the measures, arguing that they are not enough to address the root causes of the inflation and low wages. They have also called for more transparency and consultation in the decision-making process.

The economic measures taken by the President of Malawi are a bold attempt to tackle the inflation and low wages that have been affecting the country. Whether they will succeed or not remains to be seen, but they have certainly generated a lot of debate and interest among the public and the stakeholders. What do you think of the President’s actions? Let us know in the comments section below.


Mbiydze is a web and graphic designer, digital marketer, and founder of a group of companies including CHEETAH CAMEROON, MBIYDZELA DIGITAL and PULSEBEAT ENTERTAINMENT  He is an ambitious entrepreneur with experience in various fields.
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