LILONGWE-(MaraviPost)-Malawi President Lazarus Chakwera’s Tonse government is exactly following the path which former governing Democratic Progressive Party (DPP) lost trust from Malawian with appetite for borrowing.
Chakwera was very vocal when DPP leadership was busy borrowing funds from local and international institution for development project.
Just today, March 26, 2021 Parliament passed a loan authorization bill that seeks to borrow M26.5 million Euro, approximately MK19.9 billion for Southern Region Water Board, SRWB Water Supply and Sanitation Project.
Felix Mlusu, Minister of Finance told Parliament that the loan is being obtained from the European Investment Bank to upgrade water systems for Liwonde and Balaka.
But Werani Chilenga, Natural Resources Committee Chairperson has said his committee is worried with government’s appetite for borrowing.
Chilenga wondered why the Tonse continues what past leadership used to do against economic agenda for the country.
Increasing external and internal debt levels and charges connected to debt servicing are gradually putting a strain
on Malawi’s budget. The current debt stock, at 62.8%, is a constraint to additional borrowing and debt servicing costs
equaled 21.9% of domestic revenue in 2018/19
In 2019 Malawi public debt was 4,075 million euros4,562 million dollars, has increased 439 million since 2018. This amount means that the debt in 2019 reached 63.43% of Malawi GDP, a 0.31 percentage point rise from 2018, when it was 63.12% of GDP.
Malawi’s 2020 debts continues to grow as Chakwera’s Tonse administration adopts appetite for borrowing.