* This will help make Malawi an attractive tourism destination and boost foreign currency flows in the long-term
* The restrictions have been lifted for 48 countries including USA, United Kingdom, Germany, France, Australia, China and Russia
* Which are considered key source markets for international tourism and business arrivals into Malawi
By Duncan Mlanjira
Following Malawi Government’s decision to heed calls for removal of Visa restrictions into Malawi, Standard Bank Plc Chief Executive, Phillip Madinga says this will help the country increase inflows of scarce foreign currency.
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Madinga, whose bank has been advocating for the relaxation of the Visa requirement, described the government’s decision as timely as the country continues to battle foreign currency shortage, saying: “This will help make Malawi an attractive tourism destination and boost foreign currency flows in the long-term.”
Removal of Visa restrictions is one of bottlenecks identified during the bank’s-led Business Leadership Round-Table on December 12 — the high-level forum that brings together government, regulatory agencies, donors and private sector to discuss areas of economic policy reform.
Home Affairs Minister, Ken Zikhale N’goma announced the removal of the entry restrictions in a Gazette published on Wednesday that said the the restrictions have been lifted for 48 countries including USA, United Kingdom, Germany, France, Australia, China and Russia — which are considered key source markets for international tourism and business arrivals into Malawi.
The Visa exemptions also apply to all Southern Africa Development Community (SADC) and Common Market for Eastern & Southern Africa (COMESA) member states, including some multilateral institutions that do business with the Malawi government.
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Ahead of Parliament sitting which starts tomorrow in Lilongwe which, among others things will discuss the 2024–25 National Budget, the apex body of the private sector, the Malawi Confederation of Chambers of Commerce and Industry (MCCCI), offered solutions to Minister of Finance & Economic Affairs, Simplex Chithyola Banda towards combating the supply-demand imbalance of forex and align the value of foreign currency in the official and parallel markets.
MCCCI made the proposals in reference to the after-effects of the 44% devaluation of the kwacha, which was effected by the Reserve Bank of Malawi (RBM) in November 2023.
The recommendations to make devaluation work included:
* Ensuring availability of foreign exchange in the official markets to offset the domination of parallel market;
* Allowing the exchange rate to float;
* Addressing foreign exchange leakages. Private sector should cooperate with government in identifying and addressing any forex leakages. This could help improve foreign exchange inflows and contribute to a more sustainable economy;
* Government should contain the budget deficit, which is at the moment very unsustainable (above 8% of GDP) because the pressure on the exchange rate is also coming from the government; and
* Establishment of long term solutions to increase exports.
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