Malawi has recently announced the suspension of all foreign trips as part of cost-cutting measures following the devaluation of the Malawi Kwacha. President Lazarus Chakwera has taken this step to address the economic challenges faced by the country.
President Chakwera has personally canceled all presidential foreign travels until the end of the financial year.
The Cabinet has been directed to cancel all foreign trips, and those who are already abroad have been instructed to return immediately.
The decision includes the cancellation of the country’s participation in the COP28 conference, which was scheduled to take place in Dubai.
Fuel allocation for ministers and government officials will be cut by half.
The Ministry of Finance has been directed to implement cushioning measures for small and medium enterprises (SMEs) to prevent job losses.
Salaries for public and civil servants will be increased, and the PAYEE (Pay As You Earn) system will be revised to assist Malawians.
The Ministry of Finance and Trade, in collaboration with the Fair Trade Authority, will investigate price increases that do not comply with stipulated laws.
The president has also halted the raising of water and electricity tariffs imposed by government parastatals and transferred the responsibility to the operations of the board.
The devaluation of the Malawian Kwacha has resulted in South African Airways (SAA) suspending ticket sales in Malawi.
However, flights and bookings to Malawi continue to operate normally.
SAA’s decision to suspend ticket sales in Malawi is a risk management intervention in response to the country’s economic conditions and acute foreign currency shortages.
The airline will closely monitor the situation and resume sales and ticket services from Malawi when the situation improves.