Image Credit: he President's Office
In a bold move to address the economic turmoil gripping Malawi, President Lazarus Chakwera has imposed an immediate foreign travel ban on himself and his government. This decision, aimed at curbing expenses, comes in the wake of a significant devaluation of the country's currency following a loan secured from the International Monetary Fund (IMF) to revive the struggling economy.
President Chakwera's directive extends to ministers currently abroad, mandating their swift return. The austerity measures further include a 50% reduction in fuel allowances for senior government officials. Malawi's economy grapples with challenges, including fuel shortages, high inflation, and financial instability.
In a televised address, President Chakwera declared these measures would endure until the conclusion of the financial year in March 2024. While similar steps were taken during the Covid-19 pandemic, their enforcement was lax. This time, the president emphasizes strict adherence.
As part of efforts to alleviate the cost-of-living crisis, President Chakwera has tasked the finance minister with ensuring a reasonable wage increase for civil servants in the upcoming budget review. Additionally, plans include lowering income tax to support workers facing income devaluation.
Officials attribute the economic downturn to external factors, citing a devastating cyclone and the war in Ukraine as contributors. As Malawi navigates these turbulent economic waters, President Chakwera's measures underscore the gravity of the situation and the nation's determination to weather the financial storm.
