Saturday, May 21, 2022
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Chikaonda outlines growth challenges

by Grace Phiri
16/06/2017
in Business News
2 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Outgoing chairperson of National Bank of Malawi (NBM)plc, Mathews Chikaonda, says the current high cost of borrowing and power generation challenges poses great risk to achieving economic growth in the country.

Chikaonda, who is also a former Reserve Bank of Malawi (RBM) governor, said this would be despite improved weather conditions in the 2016/17 season which is expected to result into a rebound in gross domestic product (GDP) of 5.6 percent.

Chikaonda: It will take us 14 years
to double growth

He said that at a growth rate of five percent, it would take the country 14 years to double its growth while the population is still growing.

 “At five percent, it will take us 14 years to double growth but at the same time, the population will also be growing. And if you take the two, the per capita gap will be exactly where we are now. At five percent, this will be just enough to maintain our poverty for the next 14 to 20 years.

“We need to look at various sectors of this economy and ask ourselves a question of what it will take for us to grow the economy. Other countries with much less than what Malawi has are doing more including Singapore and Mauritius,” said Chikaonda during the bank’s 45th annual general meeting on Wednesday in Blantyre.

However, he added that direct budget support from the co-operating partners is not expected to resume soon and it is envisaged there will be challenges in meeting tax revenue targets emanating from the weakened economy.

“The fiscal deficit is therefore expected to increase thereby applying more pressure on inflation, interest rates and economic growth prospect,” he said.

In his remarks, NBM plc newly appointed chief executive officer (CEO) Macfussy Kawawa said the massive power load shedding the country experienced had a significant negative effect on the bank and its customers’ production capacity as well as cost efficiency.

“This in turn dampened appetite for certain bank products and services and for some, the ability to service borrowing obligations,” he said.

Press Corporation Limited  plc group CEO  George Partridge, formerly NBM CEO, has since been elected new NBM board chairperson.

During the year under review, the bank registered a29 percent increase in pre-tax profit of K25.2 billion from K19.6 billion the previous year. n

 

Previous Post

A mix of pension costs

Next Post

May inflation eases to 12.3%

Related Posts

Gwengwe: Closing the gap requires two things
Business News

World Bank sees widened fiscal deficit

May 21, 2022
Malga wants central government to share revenue from this facility with the respective council
Business News

RFA, Malga disagree on toll gates revenue

May 21, 2022
A consumer loading prepaid electricity credit whose 
tariffs have been revised
Business News

Cama wants electricity tariffs reduced

May 21, 2022
Next Post

May inflation eases to 12.3%

Opinions and Columns

Layman's Reflection

New IMF programme pivotal moment for Tonse Alliance

May 21, 2022
Family Table Talk

Historical lessons on the value of forgetting

May 21, 2022
My Diary

Politics of ‘kutola chikwama’

May 21, 2022
Bottom Up

Ukraine war: Sanctions backfire?

May 21, 2022

Trending Stories

  • Left economy in tatters: Muluzi

    Malawi’s public debt now at K5.8 tn

    0 shares
    Share 0 Tweet 0
  • Gaba comes up with two options

    0 shares
    Share 0 Tweet 0
  • CAF accepts FAM’s request on Flames fixture shift

    0 shares
    Share 0 Tweet 0
  • Onesimus leaves Major One Records

    0 shares
    Share 0 Tweet 0
  • UN bets K66bn on LMC’s plan

    0 shares
    Share 0 Tweet 0

Malawi-Music.com Top10

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.