Value addition demands stiff protocols

The government is facing a challenge to develop practical and sustainable policies for supporting local producers in adding value to their products.

This follows calls to enhance production for exports to earn more forex and deal with the continued rising cost of living.

The shortage of forex has led to price hikes in various goods, worsened by speculation about the devaluation of the Kwacha.

Malawians continue to live in agony as prices of basic goods and services continue skyrocketing as the kwacha value drops its trading power.

The situation has forced some traders to hike their prices to unsustainable levels which has left many locals in a desperate state.

Chimwemwe Tsitsi, a lecturer at MUBAS who is also a social commentator recommends sustainable protocols to control the situation.

Tsitsi said “For the economy to be working we need to enhance agriculture production and at the same time go full throttle into promoting value addition.

This can be achieved only if the government introduces a waiver on importation of important machinery that can help improve local production.”

In an earlier interview with Capital FM, trade minister Sosten Gwengwe recently stressed the crucial role that local farmers and Small and Medium Entrepreneurs (SMEs) must play in spearheading economic growth under various projects that the Malawi government and its development partners are driving.

Gwengwe said: “We have the Green Belt Authority which uses the government’s money, being very active in that space, but we do not want to overshadow the private sector. We would want the private sector to take the lead in this production concept so that apart from tobacco, we should also be known for products like macadamia”

Meanwhile, the Reserve Bank of Malawi-RBM has warned the public against panic over the fluctuating trends in the value of the local currency.

The Kwacha is currently trading at K4,000 against the US dollar while the official rate is K1,750.