CAMA demands of Chakwera to identify sustainable multiple sources of generating funds than over-reliance on borrowing or grants

Chakwera addressing the Global Climate Change in Egypt

* The Carbon Tax Credits as source of funding is disturbing, humiliating and worrisome

* CAMA has on several times appealed to Government to invite and engage key local stakeholders from all sectors of economy

* To a national economic recovery conference to discuss and find solutions over the current economic challenges

* That suggestion has been rejected and the economy continues facing serious challenges with no sign of recovery

By Duncan Mlanjira

Consumer Association of Malawi (CAMA) has trashed President Lazarus Chakwera announcement of a new funding program under the Global Climate Change campaign — the Carbon Tax Credits — saying this source of funding “is disturbing, humiliating and worrisome for the State President to start promising people about such type of funding towards economic recovery and poverty reduction”.

In a statement on Wednesday, November 16, CAMA Executive Director, John Kapito contends that “it is shocking that Government has failed to identify other sources of funding apart from its pursuit for an International Monetary Fund (IMF) facility”.

“We are expecting Government to come up with sustainable multiple sources of generating funds other than over reliance on borrowing or grants in order to have a sustainable smooth and effective economic recovery plan.

“We cannot commit the whole nation to one expensive source of borrowing which will not even recover the economy. It is also shocking that Government has resorted to over borrow domestically and from any other source it can find money without any consideration or plans on how such loans will be repaid.”

He went further to say the effects of “such negligent borrowing on poor people such as high inflation is resulting in high prices of goods and services and it’s unfortunate that most of the high debt is as result of Government appetite for non-productive activities that can’t grow or recover the economy”.

Kapito maintained CAMA’s strong stance against Chakwera’s  “unnecessary and extravagant international and domestic travel and a huge unsustainable expensive public service which is heavy at the top and contributing nothing to the growth and recovery of the economy”.

While in Sharm el-Sheikh, Egypt where Chakwera attended the 27th Conference of Parties (COP27), the President told Malawi News Agency (MANA) that Malawi was capable of increasing its carbon credits generation to ensure the country begins to benefit in cash that would ensure good distribution of social protection services in the country.

He said the his administration was currently working on putting all the necessary regulations through the establishment of the Malawi Environmental Regulatory Authority in place to ensure smooth facilitation of the carbon credits initiative.

“As a country, we are yet to start making money,” he is quoted as saying. “That is why we would like to scale up to see to it that we now have money coming in through carbon credits.

According to the MANA report, the President said the money to be realized through generation of carbon credits would be used to improve lives of vulnerable Malawians through social protection programmes.

He is further quoted as saying Malawi has a huge potential with readily available opportunities yet to be unlocked in production of clean cook stoves and waste management solutions which his government is ready to explore.

But Kapito reminded the President that CAMA has on several times appealed to Government “to invite and engage key local stakeholders from all sectors of economy to a national economic recovery conference to discuss and find solutions over the current economic challenges”.

He said that suggestion “has been rejected and the economy continues facing serious challenges with no sign of recovery.

“Surprisingly, during the same period, Government had organized a National Unity Conference “which was another waste of public resources as Unity does not feature anywhere as a challenge affecting Malawians.

“Mr. President, Malawi has a large number of local professionals that if mobilized and involved effectively they can contribute a lot to the recovery of the economy,” Kapito emphasized, adding that there is still an opportunity for Chakwera to reach outside his current advisors, “who are either close friends or family and involve as many Malawians as possible regardless of their affiliations for purposes of recovering this economy.”

CAMA also reiterated the appeal he sends to the President, “to temporarily stop making any promises to Malawians [and] to use every energy and time to think and come up with plans that can recover this economy”.

“We need to remind you again that your time in office is slowly coming to an end and that reality must guide you to do things better for the people of Malawi and you personally.”

In his preamble, Kapito said the continued forex scarcity and shortages of key essential commodities like fuel, electricity and food “are negatively affecting poor Malawians” and appealed to Chakwera’s administration “to make a statement on the strategies that Government has put in place to end these economic and social challenges”.

“Government cannot pretend as if the economy is doing well and remain quite while Malawians are struggling and negatively affected by these economic challenges.

“Government needs to assure and give confidence to Malawians about the short term strategies that it is implementing if any in order to end these challenges.

“Malawians have been patient for a long time and meanwhile the economy continues to get worse with no sign of recovery. Malawians are equally frustrated to hear Government talking again about a new International Monetary Fund (IMF) financial support program — which is a doubtful program considering that the first application was rejected.

“In any case, an International Monetary Fund program will economically disadvantage the poor as it comes with expensive and punitive conditions such as devaluation which worsens poverty among people.”