Malawi’s economic growth slowing down due to industrial action – Analyst

Malawi’s economic growth would slow down due to the wave of industrial actions in most work places, a market analyst has warned.

Investment and Portfolio Manager Alliance Capital Limited Chief Executive Officer Mr Chikavu Nyirenda told the media that there is need to come up with amicable resolutions to recover from the current crisis.

In the 2012/13 budget, the Malawi government projected that the country’s economy would grow by about 4.3 percent in 2012.

“Given the slowdown in economic activity we should expect that the economic growth would slow down, it could even be negative,” said Nyirenda.

“We have a situation where interest rate have gone up. For example, it is becoming difficult for companies to produce at the same levels they used to before. And the wave of strikes are just worsening the situation.”

Over the past few months, the country has been rocked with a number of strikes and threats of industrial action with workers from both public and private sector demanding for a salary hike following the ever increasing cost of living.

“The merits and de-merits of the devaluation decision, its timing, implementation and magnitude are all subject to debate but one definite result is that it has culminated into the threat of the nation being paralysed or being held to ransom by disgruntled workers through strike action,” worried Mr Nyirenda.

He said the matter, therefore, needs to be handled positively and decisively by all major stakeholders – the government, employers and employees alike.

Meanwhile government has drawn an economic recovery plan that would turn the country at a long-term into a progressive developmental State.