Malawi’s debt crisis deepens:National debt hits 13.1 Trillion Kwacha

By Chisomo Phiri

Malawi’s national debt has increased to 13.1 trillion Malawian kwacha as of December 2023, up from 9.3 trillion kwacha in the previous year.

According to Ministry of Finance,this means that the country’s debt-to-GDP ratio has risen to 85% of the GDP.

The ministry says the worsening debt situation is attributed to the devaluation of the kwacha and the conversion of short-term domestic borrowing to long-term facilities.

Reserve bank

Meanwhile,the Centre for Social Concern (CFSC) consultant, Lesley Mkandawire, has warned that the country will face increasing public debt pressure, with high levels of borrowing likely to continue as the economy fails to generate sufficient revenue, forcing the Treasury to take on more debt.

The national debt is the total amount of money that a country owes creditors.

It represents the sum of past deficits.