A governance expert has challenged authorities over the continued outflow of foreign exchange, arguing that Malawi should impose restrictions on imports, including luxury vehicles, to ease pressure on scarce forex reserves.
Speaking during a presentation on Developmental State Philosophy at a retreat in Lilongwe attended by National Planning Commission (NPC) commissioners, government officials and private sector representatives, governance expert Henry Chingaipe said it was alarming that Malawi imports at least 1,000 vehicles every month despite facing persistent foreign exchange and fuel shortages.
Chingaipe argued that decisive measures were needed to address the crisis, stressing that national challenges of such magnitude require firm policy action.
Meanwhile, AFIDEP Executive Director Eliya Zulu contended that Malawi’s problem is not necessarily a shortage of foreign exchange generation, but rather that much of the forex circulating in the economy is absorbed through the black market.
In response, NPC Director General Frederick Changaya proposed a gradual shift away from liquid fuel-powered vehicles by restricting their importation and promoting the adoption of electric vehicles.
He also suggested that Malawi should explore local lithium battery manufacturing, citing the country’s significant deposits of lithium and graphite, key minerals used in battery production.
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