MCCCI warns on fiscal slippages

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has hailed improved foreign exchange availability in the country at a time when government continues to implement various economic reforms aimed at healing the domestic economy.

But the chamber has warned the Joyce Banda administration against fiscal slippages in the course of implementing the 2013/14 budget to avoid losing economic gains currently being witnessed on the macroeconomic front.

“So far indications are good, it is evident that foreign exchange availability has improved and the kwacha is appreciating which is good for the private sector,” said MCCCI president Matthews Chikankheni on Friday.

He was speaking in reaction to the State of Nation Address by the President which among others highlighted the success stories of the administration in the wake of implementing economic reforms by her government.

Chikankheni said the current administration has shown that it is interested in working with the private sector and also in dealing with challenges facing private sector players in the country.

“There were so many references to the private sector [in her speech] and this shows that government is interested in working with us. We are communicating [with government],” he said.

However, the MCCCI boss asked government to deal with other outstanding issues affecting private sector players such as high interest rates prevailing in the financial sector.

Chikankheni said businesses cannot survive with the current interest rates hovering over 50 percent in some banks and financial institutions.

In her address, Banda said her government recognises that the private sector is the engine of economic growth and that for years now, government business in the market had been too big.

The President said her government is committed to reducing the scale of government to unlock the potential of the private sector.