By Vincent Gunde
Business entrepreneur Kondwani Kachamba Ngwira has expressed concerns over Malawi’s rising debt, currently standing at K23 trillion, as announced by Finance Minister Joseph Mathyola Mwanamvekha. Ngwira attributes the significant increase to the previous MCP government, led by President Dr. Lazarus Chakwera, which borrowed K19 trillion in five years.
According to Ngwira, the MCP government’s excessive borrowing was fueled by reckless spending, including unnecessary public service hiring and promotions, aimed at gaining popularity rather than sustainable economic growth. He cites the example of the NEEF fund, where loans were disproportionately distributed, with 73% going to the central region, and hardly any repayments made.
Ngwira criticizes the MCP government’s economic management, questioning the competence of its economic advisors. He expresses disappointment that the government prioritized short-term gains over long-term sustainability, leaving the country with a massive debt burden.
In a Facebook post, Ngwira warned Malawians of the dire consequences of the debt crisis, including skyrocketing prices, forex shortages, and potential loss of access to international loans. He urges the current DPP-led government to prioritize debt repayment and economic reforms.
Ngwira praises the current government’s efforts, citing a reduction in inflation from 32% to 28%, and hopes for further progress, targeting 21% inflation by 2026. He encourages the government to continue its economic stabilization efforts.
