“Why should Malawians continue paying you Sir?”-CDEDI questions Finance Minister Chithyola Banda

LILONGWE-(MaraviPost)-The Center for Democracy and Economic Development Initiatives (CDEDI) has written Malawi’s Finance Minister, Simplex Chityhola Banda, demanding answers over the termination of a $175 million loan from the International Monetary Fund (IMF).

CDEDI Executive Director Sylvester Namiwa expressed concerns over the government’s handling of the loan and its impact on Malawians.

Among other things, CDEDI is demanding an explanation why the government lied about the reasons for the loan termination of the loan.

Similarly, CDEDI asked Chithyola Banda to explain what Malawians have benefited from the over 100 percent devaluation of the local unit the Kwacha under the loan.

“Malawians were made to believe that the 45 percent devaluation was unavoidable. In fact we were assured that we were going through a tumour surgery, the termination of the loan facility calls for an explanation from the Minister as to what have the majority poor benefited since the lapse has come at a time when the wounds are still bleeding?” reads the letter in part.

Futhermore, CDEDI is challenging Chithyola’s continued role as Finance Minister since it is apparent that he has failed in debt restructuring, macroeconomic stability, revenue and foreign exchange mobilization.

Namiwa stated, “It is apparent that you failed to provide strategic leadership in the debt restructuring, bring macroeconomic stability, tame the exchange rate, champion austerity measures, and coordinate reforms in other sectors.

“CDEDI expects the Minister to respond promptly before deciding on further action.

The IMF terminated the loan due to poor economic management and the government’s failure to structure its unsustainable public debts.

The loan was signed in November 2023, following significant devaluations of the Kwacha.

Chithyola Banda refused to comment on CDEDI outburst.