By Edwin Mbewe
LILONGWE-(MaraviPost)-The National Debt Coalition has described Malawi’s escalating debt burden as a severe humanitarian crisis that is undermining economic stability, crippling public services, and threatening democratic governance.
Speaking during a press briefing in Lilongwe on Thursday, coalition members expressed concern over the country’s rapidly rising debt, which has surged from MK4.1 trillion in 2019 to MK24 trillion by the end of 2025.
The debt now exceeds 90 percent of Malawi’s Gross Domestic Product (GDP), with 65 percent of it being domestic debt, placing significant pressure on the country’s financial system.
The coalition noted that despite years of borrowing, economic growth has remained sluggish, averaging just 2.2 percent over the past five years.
Executive Director of Quota4Youth, Precious Mafunga, said the country’s debt trajectory has failed to deliver the intended development outcomes.
“Borrowing is supposed to help develop a nation, but in Malawi’s case, the opposite has happened. We have a debt of K24 trillion, but there are no drugs in hospitals. Our education system remains poor,” Mafunga said.
The coalition further warned that the growing debt burden is limiting government spending on essential services, particularly health and education, at a time when many Malawians are already struggling with economic hardships.
Country Program Manager for AHF Malawi, Triza Kakhobwe Hara, said the debt crisis is also jeopardizing critical public health interventions.
“As an organization that supports government efforts in combating HIV and AIDS, we see the impact of this crisis every day. It is a crisis on its own and it has an impact on other crises,” she said.
To address the situation, the coalition is advocating for three key reforms: the establishment of a unified Borrowers’ Forum, the introduction of automatic debt payment suspensions during climate-related disasters, and the adoption of a one percent global levy on artificial intelligence to support debt relief and development financing.
The two organizations, representing other coalition members at the briefing, also called on the government to urgently strengthen social safety nets and safeguard funding for health and education to prevent the fiscal crisis from deepening further.
The National Debt Coalition maintains that without decisive action, Malawi’s debt burden will continue to erode public services and hinder efforts to achieve sustainable development.
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