LILONGWE (MaraviPost)-Malawi Economic Justice Network (MEJN) said the government borrowing strategy is a tool for people’s suffering.
MEJN Board Chairperson Bishop Martin Mtumbuka made the remarks on Tuesday, July 25, 2023, in the capital Lilongwe during Malawi National Conference on Debt and Development saying the government needs to adjust the borrowing culture.
He said the interest on the country’s debts is the same as additional borrowing.
Bishop Mtumbuka urged the government to improve its tax correction and spend within its limit to reduce the borrowing culture.
“As a country, we need to work out on our tax correction and minimize the loan authorization processes,” said Mtumbuka.
Concurring him, Secretary to the Treasury, Mafuta Mwale said over time the country has been borrowing as it is spending more than what is getting.
Mafuta added that currently, the country has accumulated MK915 billion in debt.
Since President Lazarus Chakwera assumed office in 2020, Malawi has accumulated a debt of about MK7.8 trillion with no meaningful usage.
Under the theme, “Sovereign Debt Crisis for Malawi“, the meeting has brought together Civil Society Organisations, government officials, economic, experts, media, and among others.
Participants are discussing how to help the country reduce borrowing.
