* This seems to be part of the President’s response to the economic crisis, that came to the fore yesterday
* When a mammoth of kaunjika vendors stormed Parliament in protest to the acceleration of prices of second hand clothes
* I did so to the best of my capability and due diligence. This far, I wish my brother, Hon. Vitumbiko Mumba all the best—Gwengwe
By Duncan Mlanjira
During his appearance in Parliament where was responding to questions on the State of the National Address (SONA), President Lazarus Chakwera announced that he has appointed Vitumbiko Mumba as new Minister of Trade & Industry with immediate effect, replacing Sosten Gwengwe.
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This seems to be part of the President’s response to the economic crisis, that came to the fore yesterday when a mammoth of kaunjika vendors stormed Parliament in protest to the acceleration of prices of the second hand clothes.
According to a report on official government Facebook page, the President — while acknowledging that the country is grappling with hunger and rising commodity prices — condemned what he described as a deliberate scheme by some traders, allegedly in collusion with an opposition party, to artificially inflate prices and cause suffering for political gain.
“Their plot to overthrow my Government through an illegal hyperinflation of prices will not succeed,” he is quoted as saying. “My government will take tough and swift action against the perpetrators.”
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He thus announced the immediate appointment of Mumba, who continues to make headlines in his performance as Minister of Labour, and according to the President, he is to spearhead efforts to stabilise prices and protect Malawians from exploitative business practices.
On his Facebook page, Gwengwe — whose next role, ii any, is yet to be identified as he was previously replaced as Finance Minister by Simplex Chithyola Banda — bowed out in grace by thanking Chakwera for the opportunity he offered him to serve as Minister of Trade.
“I did so to the best of my capability and due diligence,” he wrote. “This far, I wish my brother, Hon. Vitumbiko Mumba all the best as he takes up the Ministry of Trade.”
Mumba now faces more challenges he has inherited from Gwengwe, that include scrutinising the decision that was announced in Parliament yesterday that the government has revoked licenses for all wholesale traders who import second-hand clothes, demanding that they put their business to a halt.
This was Gwengwe’s response to a petition by the kaunjika market vendors, who were protesting against high costs of living and unpredictable market conditions — and he assured them at Parliament premises that government was taking a decisive action to address the challenges they are facing due to the rising prices of second-hand products on the market.
He also said government is committed to restoring fair pricing and as part of the solution — further stating that affected shops will remain closed until the situation normalises.
But he was accused by analysts that his decision is reactive to the overall economic problems the country is facing, with All Africa Conference of Churches (AACC) Economic Justice & Accountability Champion in Malawi, Rev. Baxton Maulidi saying it is like government is shooting itself on the foot — because kaunjika beneficiaries are not only the Asians of Malawian origin but the vendors themselves as end-traders of the second hand clothes.
The vendors on their way to Parliament yesterday
“This is the only business that the kaunjika vendors deal in and they cannot look for an alternative overnight,” Rev. Maulidi said yesterday. “What the government is planning to revoke the licences will hurt the vendors more because it will create a disruption of the supply chain in the economy of Malawi.
“The kaunjika wholesale traders couldn’t have raised prices of their products if the economy was on the right track. They import the second hand clothes and due to scarcity of forex, they are probably getting it from the parallel market.”
Rev. Maulidi stressed that by revoking the licences, “the government will absolutely kill the economy” adding that the government “was not supposed to be reactive in solving the state of the economy but should have devised ways to manage it effectively way back before reaching this stage”.
Rev. Maulidi
“They should come out with clear plans of solving the economy between now and September for people to see some change because the challenges of high prices are all over.
“Otherwise, the government should just admit that it has failed and when things reach this far, the best way is to share with others to seek guidance.
“The revocation of the kaunjika wholesale traders will bring more problems to the economy. The vendors’ action today at Parliament sends the signal that the government has failed,” said Rev. Maulidi.
Mumba, whose replacement as Minister of Labour is yet to be announced, leaves the stage after implementing various initiatives aimed at improving efficiency and performance of the Ministry.
At a press briefing in Lilongwe on Monday, Mumba emphasised government’s commitment to improve technical skills development and disclosed the Ministry’s plans to establish agriculture technical colleges to support Chakwera’s vision of making Malawi a self-reliant nation.
He announced that the Ministry of Labour will establish four centres of vocational excellence focusing on priority areas of agriculture mechanisation at Lilongwe Technical College, renewable energy at Mzuzu Technical College, marine transport and operations at Salima Technical College and tourism at Malawi Institute of Tourism.
With support from European Union Zantchito Project, Mumba said the Ministry has also started offering artisanal small-scale mining course at Ngara Community Technical College to support the growing mining sector in the country.
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