The National Advocacy Platform (NAP) has issued a stern warning to President Lazarus Chakwera’s administration to take immediate action to address Malawi’s spiraling public debt, which has now surpassed 80% of the country’s economy. In a statement released on August 5, 2024, NAP chairperson Benedicto Kondowe and national coordinator Buxton Nkhoma emphasized the urgent need for transparency and accountability in debt management.

The platform called on the government to reduce non-essential expenditures and boost revenue collection to mitigate the growing debt burden. They also urged the government to evaluate the volume of debt and deliverables, ensuring that Malawians understand how loan facilities have been utilized and their tangible impact on citizens’ lives.

According to the Ministry of Finance and Economic Affairs’ quarterly debt bulletin, public debt currently stands at K15.17 trillion, equivalent to 81% of gross domestic product. NAP expressed concern that this rapid and unsustainable debt growth poses a significant threat to the country’s economic stability and future development.

The platform also appealed to Parliament to improve its scrutiny of loan bills in line with the Public Finance Management Act to safeguard national interests. They advised the government to ensure fiscal discipline, boost revenue collection mechanisms, and pursue debt cancellation.

NAP warned that the current debt burden is devouring a significant portion of the national budget, crippling the government’s ability to fund vital development projects. They emphasized that rising debt diverts essential funds from crucial public services, leaving every Malawian shouldering a financial burden of K758,500.

In response, Treasury spokesperson Williams Banda stated that the government has been rejecting non-concessional loans and implementing commitment controls to prevent accumulation of arrears. He added that the government is engaging commercial and bilateral creditors on debt restructuring and improving revenue collection mechanisms.

However, NAP’s concerns come amidst a blame game between government officials and Parliament over responsibility for the growing public debt. In July, Secretary to the Treasury Betchani Tchereni accused citizens of contributing to the situation by resisting implementation of policies meant to boost revenue and ease pressure on the fiscus. First Deputy Speaker of Parliament Madalitso Kazombo countered that the Legislature was also at fault for “rubber stamping” fast-tracked money Bills without proper scrutiny.