By Chisomo Phiri
Malawi’s renowned Economics commentator Kingsley Jassi has trashed remarks made by the Reserve of Malawi (RBM) Governor Wilson Banda that salary adjustments amidst 44 percent Kwacha devaluation are unnecessary and risky to the country’s economy.
Speaking at a press briefing in Lilongwe on Friday, Banda argued the adjustments would worsen inflation, lead to job losses, low production in the private sector and eventually pile pressure on the government budget.
“To me I feel like salary adjustments are risky to the national economy and if we do not care, we will face heavy challenges in the near future,” argued Banda.
But in his comment,Jassi argued that the RBM boss is not making good sense.
“There are things that can’t be avoided. Everything has to be adjusted for sustainability,” argued Jassi.
Ironically, prices of several essential commodities such as fuel shot up immediately after the devaluation with government announcing measures to cushion Malawians from the harsh impacts of the kwacha fall.
This also comes after the government, in the Mid-Year Budget, increased wages and salaries for civil servants by 10 percent; from K900.44 billion to K980. 49 billion.
A few days ago, Malawi Congress of Trade Unions (MCTU), which demanded a 44 percent salary increment for workers, said it was not happy with what authorities included in the budget statement.
Its President Charles Kumchenga said they would be meeting the Government Negotiating Team to present their grievances.
“Since we are to meet the government negotiating team soonest, possibly this week, we cannot pre-empty our feelings and our stand until the government side explains this package.
“What is well known is that we were expecting above 44% as salary increment so experts will unpack this to us so that we appreciate it. Otherwise, without beating the bush, we are not happy,” said Kumchenga.
The 2023/2024 national budget has jumped from the initial K3.79 trillion K4.33 trillion due to the kwacha devaluation.
 Governor Wilson Banda that salary adjustments amidst 44 percent Kwacha devaluation…){kind=link}