President Lazarus Chakweras Chief economic advisor Chancellor Kaferapanjira wants second car and clothes known as ‘kaunjika’ banned blaming them for scarcity of foreign exchange.
Kaferapanjira who doubles as Chief Executive Officer for the Malawi Confederation of Chambers of Commerce and Industry, receiving two salaries has made a presentation to the Minister of Finance Sosten Gwengwe.
The two sectors provide economic survival for thousands of Malawians and would spell doom for the low income earners who can’t afford brand new vehicles or clothes due to worsening high cost of living.
Kaferapanjira as advisor to the President who is failing to manage the economy, has not said how he expects the foreign exchange to improve if “kaunjika” is banned.
Kaferapanjira is quoted in a local daily The Nation saying that vehicles order than 10 years drain foreign exchange as the require spare parts.
He does not give statistics as to what percentage is both Kaunjika and old vehicles which are affordable to majority of low income earners is to imports by huge industries.
Under President Chakwera the country’s foreign reserves have plummeted to their lowest levels and the administration is yet to deliver ideas that will tackle the problem.
Centre for Public Accountability economist John Mbali said the ideas from Kaferapanjira and MCCCi are dangerous elitism.
“He is speaking of taking away people’s means of earning a living yet he does not say what those engaged in the sectors will be doing. Kaunjika and Cars can’t cause forex challenges today, they have been part of our informal economy for years,” he said.