The Consumer Association of Malawi (Cama) has lebeled government and the Reserve Bank of Malawi (RBM) dramatists who do not have a slight idea of how Malawians are suffering.
Making the allegation Consumer Association of Malawi (Cama) executive director, John Kapito said that the central government is busy lying to Malawians that the economy is picking up while living conditions in the country are worsening.
“On their papers may be that is true, nevertheless considering the rise in commodity prices there is nothing good happening to our economy.
“Just look at the cost of living, a family of six now needs over K171 000 in a month to live. Should we say things are improving then? How many people make K100 000 a month in Malawi?” he asked.
Kapito added that the happenings on the ground reflect that the Kwacha is falling at a high speed not otherwise.
“Everything in Malawi has become unaffordable and the central bank should first find out from the suffering Malawians before insulting us that the economy is picking up and commodity prices are falling,” he advised.
Recently, the Malawi Congress of Trade Union (MCTU) asked respective employers to review wages of their employees as the economy is expected to fall farther following the introduction of the K2000 note.
MCTU general secretary, Pontius Kalichero said that any country that introduces new notes with highest figures struggles to arrest inflation.
“What it means basically is that commodity prices will jump up because traders take an advantage of the new bank note.
“Even those who did not consider inflation seriously become fully aware that things are out of hand and they raise prices of goods and services to be on the safer side,” he said.
Kalichero added that government and companies must raise wages of the lowest paid workers.
“This are the people who will be affected the most because their earnings will mean nothing after the new banknote is introduced,” he said.
He further said that the review of the wages would face obstacles because companies would also be affected with the predicted massive inflation.
“As of now the inflation is affecting both employers and the employees and things will be the same when we start using the new note, however its our plea for the employers to consider our concerns,” he added.
The central bank will introduce the K2000 denomination on the 19th of November.