The recent depreciation of the Malawi Kwacha against other major world currencies is expected to negatively affect the country’s food production.
The prediction by the Civil Society Agricultural Network–CisaNet follows a recent Reserve Bank of Malawi’s announcement of a 0.27 percent depreciation of the Kwacha that followed another 2.4 percent devaluation, implemented in June this year.
Following the development, the US Dollar is now trading at K1, 058.82.
This – according to a Press Statement that CISANET has made available to MIJ Online – casts a dark shadow for the country’s food security.
“With the onset of the growing season, the weakened Kwacha and the current forex shortage continue to threaten the country’s other key three Fs on the country’s economic growth; namely food, fuel and fertilizer. The three, coupled with the country’s reported dwindling import cover in forex reserves, go hand-in- hand signaling the beginning of yet another cycle of hunger,” read part of the statement.
In the statement that has been signed by the CisaNet’s Board Chairperson Herbert Chagona has further noted that shortages of forex and fuel will derail the importation of fertilizers for its Affordable Inputs Programme (AIP) whose beneficiaries form almost half of those facing acute foot shortages in the country.
The network has since called for what it has described as systematic changes aimed at addressing the predicament at hand, before it is too late.
“The current and impending crisis can be nipped in the bud if appropriate measures are taken urgently. Government can lead the way on this by setting moderate prices at which beneficiaries in this year’s AIP can be acquiring the quality seed.
“The prices must not be exorbitant, not to be driven by profit-making. Simply put, many will not manage in this current economic climate. In the end, most of them are bound to use recycled seed; thereby reducing yield upon planting,” said the statement.
Besides, CISANET has also called for proactive measures aimed at increasing agricultural diversity and promotion of climate-resilient farming practices in both rural and urban areas.