• Two things will help with the increase of money in circulation, payment of contractors and also increase the level of employment.
• Government must pay the contractors on time in order to stimulate economic activities.
• Entrepreneurs always need to have liquidity.
An Economist has called on government to urgently pay its contractors so as to stimulate economic activities that will help increase liquidity in circulation.
Speaking in an interview with Money FM News, Rita Mkandawire said government must pay the contractors on time in order to stimulate economic activities because entrepreneurs always need to have liquidity.
Ms. Mkandawire stated that when contractors are not paid after supplying goods and services to government, it becomes difficult for them to pay their workers.
She also called for an increase in the level of employment, stating that young people will always complain that there is no money when they do not have jobs.
“This is January and obviously government has started paying some of its suppliers, at least I have an improvement with regards to liquidity. Two things will help with the increase of money in circulation, payment of contractors and also increase the level of employment. We need to work on initiatives like the CDF, if only more Members of Parliament could implement the CDF, I think then people will start having money in their pockets.”
“Let government pay its contractors let it not be a fight when someone supplies to government that their money will come after 90 days. If delivery is made, pay the contractors on time, and also for you to stimulate economic activities, entrepreneurs always need to have liquidity. So government actually should look at the bigger picture and stimulate economic activity by ensuring that payments are made on time,” Ms. Mkandawire advised.
Meanwhile, Ms. Mkandawire stressed the need to move away from a culture of dependence on formal employment by improving the level of education in universities.
“Companies that have employees should at least try to see how they can even give employees incentives, it’s a triple effect but then when the SME is not paid after supply how does he pay his workers, if the contractor is not paid, how do they pay their workers. Everybody at the end of the day is affected. So I think the onus is up to government to ensure that the payments are made on time to all suppliers and their stakeholders and also let’s just increase the level of employment.
“I think we need to move away from a culture of dependence on formal employment, maybe also we need to improve the level of education in universities. Let there be a course that helps professionals know that they can create their own businesses,” she added.