By Alfred Chauwa
Malawians stand to benefit from safety net measures which Minister of Finance Simplex Chithyola Banda has announced following the 44% devaluation.
The Minister of Finance and Economic Affairs Simplex Chithyola Banda says Government has put in place various measures to cushion poor Malawians from the shocks arising from the recent 44 percent devaluation of the local currency against the United States dollar.
This follows the Reserve Bank of Malawi announcement of a 44% realignment of the kwacha against the dollar, a move the Central Bank said was aimed at correcting supply-demand imbalances in the forex market.
The kwacha fall has triggered sharp rise in the cost of living, especially basic commodities, a situation that is likely going to push the inflation upwards.
But addressing journalists in Lilongwe on Monday morning, Chithyola Banda says Chakwera-led administration appreciates the pain the increase in the cost of living has caused on Malawians, particularly the less privileged citizens.
The minister further stated that the government will continue with the implementation of Cyclone Recovery intervention in Blantyre Rural, Thyolo, Phalombe, Chiradzulu, Mulanje, Nsanje, Chikwawa, Balaka, and Zomba Rural targeting 184,920 households where beneficiary households receive MK150,000 to support with consumption needs and cushion the affected households against the effects of the alignment.
“Government will re-introduce the Price Shock Urban Emergency Cash Transfer
Program which will target 105,000 households in Zomba, Blantyre, Mzuzu and Lilongwe city councils and the beneficiaries will receive a once off transfer of MK150, 000 covering a period of 3
months, ” he said.
Chithyola also said Government will increase Social Cash Transfer Benefit Levels by 57 percent which is more than the exchange rate alignment amount.
The Minister said Government will Increase Social Cash Transfer Beneficiary Coverage from the current 10 percent to 15 percent of the population.
“Pursuant to section 54 of the Employment Act (Cap. 55:01 of the Laws of Malawi), Government has embarked on consultations with relevant stakeholders to revise the minimum wage. The
government will also embark on a similar exercise with respect to public servants,” he said.
With the measures, many Malawians will benefit in various ways in cushioning their daily livelihood.
