The Reserve Bank of Malawi (RBM) has stressed the need for the private sector to be proactive in helping to generate foreign exchange for the country to have enough import cover.

RBM spokesperson Dr Mark Lungu told Zodiak the country needs U$3 billion for imports annually but tobacco, the main forex earner, rakes in only U$400 million.

Dr Lungu said the government is trying to explore other sources of generating forex, such as mining, but there is a need for the private sector to come in with other innovations.

Dr Lungu said currently the country has U$600 million of foreign exchange in stock, enough just to cover two-and-a-half months imports.

Dr Lungu said there is an improvement in forex availability after the tobacco marketing season compared to the situation early this year.

He, however, stressed the need for the private sector to compliment government efforts in generation of forex.

Lungu said the U$400 million from tobacco represents only 15 percent of what the country consumes in imports

He added that government initiatives, including those in mining and establishment of industrial parks, are steps in the right direction to enhance foreign exchange generation.

Malawi has been facing forex shortages in recent years, leading to shortages of key products such as fertiliser and medicine.