Sunday, May 26, 2024
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Chakwera administration secures landmark deal for reducing forex stress: Malawi to Import from Israel in Kwacha

Economist Dr. Betchani Tchereni

In talks led by Secretary to the Treasury Professor Betchani Tchereni, the Malawian delegation in Israel explored agreements for the provision of essential goods to Malawi, with the standout feature being Israel’s openness to accept Kwachas as payment.

Tchereni indicated that upon finalization, these agreements could potentially yield savings of nearly $1 billion (approximately K1.740 trillion) for Malawi, consequently exerting downward pressure on the prices of these crucial commodities domestically.

“The Malawi delegation managed to negotiate deals with six companies,” he said.

He was quick to say that, for security reasons, he could not shed light into the companies just yet.

“Otherwise, all I can say is that the deals will see Malawi getting fertiliser, fuel and some essential medicines without the involvement of middlemen. In addition, activities pertaining to the deal will be conducted in Malawi Kwacha.

“Further, the balance of trade is likely to improve and increase the stock of foreign reserves in Malawi,” Tchereni said.

Meawnhile, Security expert Edward Chaka, who is also People’s Federation for National Peace and Development Executive Director, has defended government’s position to keep names of the companies it will be dealing with under wraps.

“With what is going on in Israel, where there is some armed conflict, the government is showing the international community that it can be trusted with sensitive information.

“This will help Malawi’s cause because for one to trade, or engage in government-to-government activities, freely, there has to be trust built. As such, I do not see anything wrong with the decision to keep the information under wraps. It reflects on Malawi’s respect for Israel and companies that operate there,” Chaka said.

 

 

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