The Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe said Malawi’s economy could grow if the country diversified its revenue base, adding that the reason why Malawi has faced stunted growth in economy, is because of overdependence on agriculture.

The governor’s words follow an unsuccessful tobacco market season that has seen sales slump by 29%, while rejection rates were over the roof, as buying prices were fair only towards the end of the season. Last week, RBM figures showed that the performance of tobacco prices during the 2018/19 season has been unsatisfactory compared to the previous two seasons with average prices for tobacco, at $1.43 (about K1 060) per kilogram (kg) for 2019 lower than $1.67 (about K1 236) per kg fetched in 2018 and $2 (about K1 480) per kg in 2017.

During a two-day training course for journalists that report on the economy, Kabambe stated that since, the country mostly depends on agriculture, climate shocks affect the country’s economy. “…the challenge is that the country only depends on agriculture which sometimes faces a lot of challenges such as drought and floods.”

Making an example out of countries such as Rwanda, Kenya and South Africa, Kabambe advised that Malawi should venture into mining, tourism and other sectors as alternate means of boosting revenue.