In an era where Malawian currency is losing its value as compared to other foreign currency, a period where Malawian foreign currency reserves are getting short does agriculture have anything to do with the trend?

Let’s find out!

Economists say that for a country’s currency to thrive and gain more power on the international market, the level of that country’s visible and invisible exports must pass that of Visible and invisible imports referred to as “balance of trade” (Edwin Visabwe Business studies Book 3 & 4 2016 revised edition)

Agriculture being the backbone of the Malawian economy has a case to answer why Malawian Kwacha is losing its value.
Tobacco is the main Malawian export crop on top of other cash crops such as Tea and coffee.

Regardless of the tobacco output levels that Malawi realises per year, the amount of tobacco that is sold out is relatively not promising due to high levels of market returns.

This is not only so but also the anti-smoking campaign has also had a massive negative effect on tobacco.

The international demand for Malawi’s air-cured Burley Tobacco has been declining for the past few years.

In March this year, Kanengo tobacco Processors Limited, which has been on the tobacco market for over 20 years closed down its Lilongwe factory and almost 120 permanent workers lost their jobs. 
Among other reason for the closure is the way how the tobacco business environment is trending as according to the statement that was issued by the company.

This is a sad development for a developing country which is ranked on the list of poorest countries in the world.

In the past years agricultural experts and economist have been working and researching on the crop and product that can replace tobacco as the country’s main export product.

As according to research conducted by different bodies and individuals Malawian Chamba has come out to be the crop that is estimated to replace tobacco.
The Malawian parliament tabled bills that legalised the commercial farming of the crop and also further established a control commission that was given mandate to drive this operation.
Among other constitutional mandate, the control authority is given obligations to license the commercial cultivation of the crop and set measures that can control its production.

“Cannabis Regulatory Authority (CRA) Chairperson Boniface Kadzamila, said it’s a high time stakeholders did research on the Malawian hemp to find out products that can be made from the local hemp. Kadzamila says the local hemp has made name internationally and there is need to explore why the hemp is the best. Kadzamila adds that CRA has been getting queries from investors outside the country on the local hemp. He says Malawians should be proud of the local hemp adding what is needed is good research on what the hemp can be used for.”  (Slightly adapted from National Publications Limited, Facebook post dated 27 June 2021)

But does all this mean that it is only cannabis that can thrive Malawian kwacha?

This is open for debate, for if we say yes! We might be wrong because there has not yet been any remarkable benefit so far, meaning that the cultivation and licensing is still in process and as a country, it has not yet realised wealth from it. And on a contrary note, if we do say No! We might also be kind of not sure whether if there is any crop that can replace tobacco.

Since its research has not yet been conducted. So let’s temporarily close that page for now.

This decline in value of Malawian Kwacha from K700 in 2019 to k850 in 2021 for $1(United States Dollar) is coming at period when the third wave of Covid-19 which is of an Indian variant is causing massive destruction to Malawi’s economy.

This trend has so far led to the rise in prices of essential commodities such as cooking oil, sugar and other products. This increase is also claimed to be due to the imposition of a 16.5% Value Added Tax on Companies producing these essential products.

As it is being monitored by different people, the prices of these essential commodities continue to rise each and every shopping day.

It is not only Tobacco that widens the Total Gross Domestic Product (GDP) of Malawi but also some other local crops that are grown in the local areas of Malawi.
The introduction of Affordable Input Program (AIP), that allowed local and poor farmers to access farm inputs such as fertiliser and seeds at an affordable price, at its first year has led to massive harvest of Maize crop.
And because of this the government is planning of selling the surplus maize harvest to other countries. This is promising as far as the dwindling of Kwacha Value is to be battled upon.

Recently there have been a common and popular word that is being used by local Malawians to shortly describe how badly they are being affected by the Kwacha backward development and this “Pa ground patelela/Pa ground sipalibho” this simply mean that the working, hustling and business grounds are not good.

The cost of living keeps on rising and it is hard for a local Malawian citizen in the remote areas to survive.

The government and private sectors are working tirelessly to conquer and stabilise the situation.

Agriculture is the gold and precious mineral for Malawi. Subsistence farmers do survive through it.
The economy also depends on it, and this is showing how agriculture do affect the value of Malawian Kwacha.

The only thing that local farmers need to focus on is adding value to their crops.
This can be achieved by exporting already processed products that will fetch high price on the global market and also farmers must on their own advance their production output so as to create a great surplus that they can legally sell to other countries.

All this will help in filling the country’s foreign currency reserves and mostly it will help in putting Malawian Kwacha value back to track.
This will also be a comparative advantage for Malawi to rank high on the international market as other countries are facing serious and heavy blows of the Covid-19 pandemic.

Panthawi yomwe mphamvu ya ndalama ya dziko la Malawi ikuchepera mphamvu poyerekedza ndi ndalama ya m’mayiko ena; munyengo yomwe ndalama zakunja zachepa m’malo osungirako, kodi ulimi wakhudza bwanji izi?

Tiyeni tiwunike zimenezi!

Katswiri wina wazachuma yemwe dzina lake ndi Edwin Zisabwe adalemba kuti mphamvu ya ndalama ya dziko kuti ikwere ndikumachita bwino pamsika wamayiko onse, katundu amene dziko limatumiza kunja amayenera akhale ochuluka kuposa uyo yemwe dzikolo limayitanisa kuchokera kunja.

Fodya ndi imodzi mwa mbewu yomwe imalimidwa ndi kugulitsidwa kunja kwa dziko lino. Mbewu zina zomwe zimagulitsidwa kunja kwa dziko lino ndi monga mbewu zina ngati tiyi komanso khofi.

Kupatula mulingo wa m’mene fodya amakololedwera pa chaka, mulingo womwe wumagulitsidwa wumakhala wocheperako kamba koti fodya wochuluka amabwezedwa.

Si zokhazo ayi, komanso kampeni yoletsa kusuta yakhuzanso msika wa fodya.

Mulingo wa fodya wa Bale womwe umafunidwa ndi mayiko akunja wakhala wukutsika mu dzaka zapitazi.

M’mwezi wa Malichi chaka chino, kampani yafodya ya kulilongwe ya Kanengo Tobacco Processors Limited yomwe yakhala ikuchita malondawa kwa dzaka zoposa makumi awiri inatseka fakitoleyi. Izi zidapangitsa kuti ogwira ntchito oposa zana limodzi ndinso makumi awiri ataye ntchito zawo. Potengera ndi chikalata chomwe kampaniyi inatulutsa, kusekaku kudadza kamba ka m’mene malonda afodya akuyendera. Izi ndi zodandaulitsa mudziko lomwe ndi limodzi mwa mayiko osawukitsitsa pa dziko lonse lapansi.

Muzaka zapitazi, akatswiri a zaulimi komanso a zachuma akhala akupanga kafukufuku wofuna kupeza mbewu yomwe ingalowe m’malo mwa fodya. Ndipo zotsatira zakafukufukuyu zinawonetsa kuti mbewu ya chamba ndiyo ingathe kukwaniritsa izi. Potsatira izi, nyumba yamalamulo inapanga malamulo oyendetsera ulimi wa chamba ndinso kukhazikitsa bungwe loyang’anira ulimiwu. Mwa zina, bungweli lidapatsidwa mphamvu kudzera munyumba yamalamulo kuti lizipereka ziphatso zovomereza alimi kuchita ulimiwu mudziko lino.

Wapampando wa Cannabis Regulatory Authority (CRA), bambo Boniface Kadzamila anatsindika ponena kuti nthawi yakwana tsopano kuti pachitike kafukufuku wofuna kupeza katundu yemwe angapangidwe kuchokera ku chamba. Iye anati chamba cha kumalawi chapanga dzina pa dzikoli ndipo ndi kofunika kuti kafukufukuyu achitike. Iye anati bungwe lawo lakhala likulandira mafunso ochuluka kuchokera kwa anthu a malonda akunja omwe akufuna kuyamba ulimiwu. Iye adawonjezera ponena kuti chomwe chikufunika ndi kafukufuku wabwino. (Zina za izo zatengedwa patsamba lamchezo la Facebook la mnyumba yowulusa mawu la National Publications Limited, 27 Juni 2021)

Kodi izi zikusonyeza kuti ndi chamba chokha chomwe chingabwezere mphamvu ya ndalama ya kwacha?

N’zowusa mapiri pachigwa poti tikati eya ndiye kuti titha kukhala kuti tikunama poti pakadali pano dziko la Malawi silinapeze cholowa mu ulimiwu. Ndipo tikati ayi titha kunamanso poti kafukufuku wina wofuna kupeza mbewu ina yomwe ingalowe m’malo mwa fodya sadachitike.

Kugwa mphamvu kwa ndalama ya kwacha kuchoka pa K700 posithana ndi ndalama imodzi ya dollar ya ku Amelika muchaka cha 2019 ndikufika pa K850 mchaka cha 2021 kukudza pamene chuma cha dziko la Malawi chakhuzidwa ndi mlili wa Covid-19.

Izi zapangitsa kuti katundu monga mafuta ophikira komanso shuga zikwere mtengo. Kukwera kwamtengoku kukudzanso kamba koti boma layika msonkho wopandachindunji wokwanira 16.5% pa makampani opanga katunduyu. Ambiri ali ndi nkhawa polingalira kuti mitengo ya zinthu ikupitilira kukwera tsiku ndi tsiku.

Si fodya yekha amene amachulutsa chiwerengero cha katundu amene dziko la Malawi limatumiza mayiko akunja poti palinso mbewu zinanso zomwe zimalimidwa m’madera akumidzi.

Kubwera kwa ndondomeko ya boma ya kagulidwe kwa zipangizo za ulimi motsika mtengo yomwe pachingerezi ikutchedwa kuti Affordable Input Subsidy kwapangitsa kuti chaka chino chimanga chikololedwe chochuluka ndipo boma lili ndi chikonzero chogulitsa china mwa icho kumisika ya kunja. Izi ndi zokondweretsa pa kalikiliki wothana ndi kugwa kwa mphamvu ya kwacha.

Posakhalisa anthu akhala akukamba kuti “pa galaundi sipali bho” kapena kuti “pagalaundi patelera ” pofuna kusonyeza mmene akukhuzidwira ndi nkhani yamavuto omwe akumadza kamba ka kugwa mphamvu kwa kwacha.

Boma komanso mabungwe ena oti si aboma adakali pa kalikiliki wofuna kuthana ndi mavutowa.

Ulimi ndiwo golide komanso mwala wamtengo wapatali wa dziko la Malawi.  Alimi ang’onoang’ono omwe amadalira ulimi pofuna kukhala ndi chakudya amapulumukira muulimi womwewu. Chuma chadziko la Malawi chimadalira ulimi ndipo izi zikuonekera ndi momwe chakhuzidwira.

Chinthu chokhacho chomwe alimi ayenera kupanga ndicho kumatumiza katundu okonzedwa kale kumisika yakunja. Izi zimapangitsa kuti katunduyu apeze mitengo ikuluikulu komanso afunidwe ndi ogula ochuluka.

Aliminso akuyenera kuchulutsa mulingo wa mbewu zomwe amadzala. Zonsezi zithandiza kubwenzeretsa ndalama yakunja munkhokwe zosungiramo m’dziko lino ndipo pamapeto pake zipangitsa kuti mphamvu ya ndalama ya Malawi ikwere. Izi zili ndi kuthekera koyika dziko lino mu mndandanda wa mayiko omwe amachita bwino pa misika ya dziko lonse kamba koti mayiko ena ambiri akhudzidwa kwambiri ndi matenda a Covid-19 kusiyana ndi mmene dziko la Malawi lakhudzidwira.