Adebayo Adenrele
…reduces allowances amid inflation
President Lazarus Chakwera of Malawi has suspended foreign trips for himself and cabinet members as part of measures to minimise the impact of the recent devaluation of the country’s currency by 44 per cent.
The President suspended all foreign trips till the end of the fiscal year in March, 2024.
Chakwera stated this during a televised speech on wednesday.
“I know that this decision has caused a lot of pain – and I know that all of us now have to make big adjustments in spending so that we can prioritise those areas that are most productive.
“In fact, all cabinet members currently abroad on public-funded trips must return to Malawi with immediate effect,” he said.
According to VOA, earlier this month, the Reserve Bank of Malawi announced the devaluation of the country’s currency by 44 per cent to allow the local currency to align with the U.S. dollar on the black market.
Consequently, the prices of almost all commodities, including fuel and electricity, immediately increased by more than 40 per cent.
Also, public-funded trips for public officers at all levels, including those in parastatals or state-owned enterprises, will be suspended till March.
He also ordered a reduction in fuel allowances for top government officials, which include ministers, by half.
