There is need for new leadership of Dr McDonald Mwale at RBM to be more independent and professional in approach in their decisions—Chief Economist Chifipa Mhango 

* It is Malawi’s economy that should be the focus and not the politics that surround it 

* It is also the responsibility of the new leadership team to turn around RBM financial position from a loss-making entity

By Duncan Mlanjira 

The news of the appointment of Dr McDonald Mafuta Mwale as new Governor of the Reserve Bank of Malawi (RBM) and Deputy Governor, Dr Kisa Simwaka “is welcomed for an ailing Malawi economy”, says Malawian Chifipa Mhango, Chief Economist for South Africa’s Don Consultancy Group (DCG).

In a media statement, the DCG director of economic research & strategy maintains that the appointment also presents an opportunity for the new leadership to assert themselves with their own approach “in dealing with the challenges facing the Malawi economy from the monetary policy perspective with inflation rate remaining elevated at  current high level of  27%”.

“It is also the responsibility of the new leadership team to turn around the Reserve Bank financial position from a loss-making entity.

“I expect the new team to be more visible to the public in articulating the country’s economic position and also engage key stakeholders in the decisions of the RBM that are likely to affect the Malawi economy.

“Gone should be the days when Reserve Bank of Malawi decisions are just website-based publications with no visibility to engage with the media and on broader business society platforms.

Mhango further says there is also “a need for the new leadership at RBM to be more independent and professional in approach in their decisions”, adding that “it is Malawi’s economy that should be the focus and not the politics that surround it”.

“The lack of alignment between fiscal policy, trade & industry policy implementation to the monetary policy objectives has at times rendered the RBM functions redundant.

“It is, therefore imperative that the new leadership team offer honest and right advice to Malawi Government’s polltical heads on issues such as fiscal mismanagement and its overall impact on monetary policy environment.

“It’s the expectation of some of us that there are standard regular official engagement between the new leadership at RBM with Malawi Government political heads to ensure policy alignment.”

Mhango thus applauds Mwale’s appointment by President Lazarus Chakwera and wishes the new team all the best in their new roles: “It is important that this new team depart with the appreciation that it’s the people of Malawi and its economy that matter; and not the positions one holds.”