Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has released a position paper addressing the persistent foreign exchange issues affecting the private sector. This paper outlines strategic recommendations to enhance economic stability and growth.
The chamber has among other has raised concerns about the recent introduction of the Foreign Exchange Control (2024) regulation by the government.
While acknowledging the government’s efforts to address foreign exchange challenges, the MCCCI warns that the implementation of these measures could have unintended negative consequences on the private sector and the broader economy.
MCCCI has advocated for a forward-looking approach to address forex scarcity by boosting export diversification and enhancing local production capacity for import substitution. The proposed changes according to the Private Sector Lobby group could drive parallel trading, escalating parallel rates and fueling increases in production costs and price instability for basic goods and services.
Further, the MCCCI has urged the government to maintain the RBM’s regulatory role and enable commercial banks to continue operating effectively while prioritizing the allocation of available foreign exchange to productive sectors. This would support the private sector and the broader economy by generating additional forex.
Download the full Position paper at MCCCI Position on Foreign Exchange MeasuresÂ
