By Daniel Itai.
Lilongwe, Malawi. (News of The South) Close to two million Malawians could find themselves jobless due to the economic impact of COVID-19.
“In Malawi, it is estimated that close to 1.5 million jobs will be lost due to the pandemic,” said Lilian Patel, the Minister of Labour.
The COVID-19 pandemic is expected to negatively impact the economic outlook for Malawi, while measures implemented to control the spread of the disease are expected to affect the most vulnerable. Around 70 per cent of the population in Malawi live below the international poverty line of US$1.90 per day.
“Malawi has one of the lowest per capita Gross National Incomes (GNI) in the world, at just US$320, and its economy which is heavily reliant on rain-fed agriculture is vulnerable to shocks.
Real GDP is forecasted to shrink by 3.2 per cent in 2020, while slow economic activity and labor mobility are expected to disproportionately affect urban residents who depend on daily incomes. Markets will experience substantial disruptions to supply chain over the coming months, and international trade links are already affecting imports for small industry, while suppliers have relatively good volumes of most products in stock locally, disruption in international supply chains are likely to lead to future shortages or increased cost of basic goods.
Tourism, one of the priority growth sectors in Malawi, will be greatly impacted in the period ahead. Malawi also depends on imported petroleum products which have price transmission effects on goods and services. Sudden supply shock will have negative consequences, while the potential reduction in global demand may result in logistical challenges in the neighboring countries, affecting the availability of fuel,” read a statement from the UN Office for the Coordination of Humanitarian Affairs.
Malawi declared its first case of COVID-19 on 2 April 2020. As of 30 April 2020, there were 36 confirmed positive cases of COVID-19 and 3 deaths. A State of Disaster was declared by President Arthur Peter Mutharika on 20 March 2020 and a 21 day lockdown was implemented from 18 April to 9 May 2020. The lockdown measures include, bans on public gatherings, closure of schools, and bans on international flights and cross-border passenger buses.
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