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News that the kwacha may register a significant fall is said to be sending jitters among most students studying with international bodies raising fears that education will no longer be made accessible to many poor Malawians.
Currently, most Malawian students studying accounting, purchasing and supply, marketing, insurance and many other courses are failing to register with international examining bodies due to exorbitant examination fees usually charged in British pounds and United States dollars.
The impending fall of the kwacha comes amid reports that the Malawi Government and the International Monetary Fund (IMF) have agreed that all forex earned from tobacco sales up to June this year should clear outstanding import payments accumulated over the past year.
It is believed that the move will help government meet crucial targets to qualify debt forgiveness plan called Highly Indebted Poor Country’s (Hipc) initiative to be decided in June.
The move is likely to leave the country with low forex levels to cater for its new obligations, a situation which will leave the kwacha even weaker.
The country’s currency has been losing ground over the past months and it was hoped that the trickling in of the tobacco dollars may strengthen its position.
Economists have argued that the country’s currency is overvalued but Reserve Bank Governor Victor Mbewe has denied that saying “the economists have a right to their opinion but the kwacha is not overvalued”.
Stakeholders like the Malawi Confederation of Chambers of Commerce and Industry have been pressing government to have the kwacha devalued saying a strong kwacha is hurting local producers.
Malawi College of Accountancy (MCA) Principal Albert Kumwenda said any move to devalue the kwacha will have very devastating effects on education.
“Even at the current exchange rate students are failing to pay tuition fee and examination fee at once which results in most students paying for only a few subjects thereby prolonging the time of study,” said Kumwenda.
One of the accounting students at MCA Smith Bobby feared that the move may spell a sudden end of the career of many students.
Shepard Institute of Insurance lecturer Limbani Mkandawire said on Monday a further depreciation of the kwacha would only widen the gap between the poor and the rich as only the poor will have access to education.
“Currently students have to cough between 60 to 100 British pounds per subject to sit for Insurance Certificate and Diploma exams and this is already proving to be an uphill task for many students at the current exchange rate. Any further weakening of the kwacha will hurt students,” said Mkandawire.
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