Alliance Capital Limited, independent portfolio and investment managers in Malawi, say it’s unlikey that the country’s ailing economy will stabilise soon because the much needed donor inflows may delay due to bureaucratic processes.’
Also involved in pension fund asset management, money market brokerage, corporate finance advisory, among others- Alliance Capital Ltd made the observations in its latest market update for the period ending 25th May, 2012
“Malawians need to brace themselves for harder times ahead as the economy is unlikely to stabilize soon…”
The warning comes at a time when the International Monetary Fund (IMF) has projected a fall in the average months of import cover of 1.2 and 1.1 in 2012 and 2013, respectively.
Britain on Friday released 33 million pounds to Malawi ahead of the crucial 2012/13 national budget in a show of support to its former colony.
British secretary of State Andrew Mitchell called on other donors emulate his country’s support to Malawi.
He said his country has fast tracked the release of funds to show support for the bold steps President Joyce Banda has taken to bring the economy back on track
Aid-dependent Malawi slid into economic crisis over the past year as late President Mutharika, squabbled with major western donors who then froze millions of dollars of assistance that had traditionally bankrolled about 40 percent of the budget.