Malawi In $400 Million Tobacco Forex Earnings Deficit

Malawi Energy Regulatory Authority  (Mera) chief executive officer, Henry Kachaje says the country is facing fuel and forex shortage situation because it has not doubled generation of forex despite demand for forex going up.

Kachaje said for fuel alone, the country needs $600million per year but tobacco, which is the major forex earner for the country, only brings in about $200 million.

Kachaje said this when he briefed the joint parliamentary committee, comprising of committees on Natural Resources and Climate change , Statutory Corporations, Transport and Trade, Industry and Tourism.

He stressed that the country needs to have a conversation on how it will double forex generation.

“Without doubling forex generation any measures being put in place are just cosmetic, borrowing is not a solution as at the end will still need to pay back and at the end, the country will still be under pressure,” Kachaje.

The Parliamentary committee called for an emergency meeting with Ministry of Energy, National Oil Company of Malawi (NOCMA),  Malawi Energy Regulatory Authority, Petroleum Importers Limited (PIL) and Mount Meru and other stakeholders in the fuel sector to discuss fuel challenges that the country is facing.