President Dr. Lazarus McCarthy Chakwera has pleaded with United Nations (UN) Secretary General António Guterres to list Malawi among priority economies to get adequate funding in order to equip the country to build resilience against climate shocks.
Chakwera made the remarks on Friday during a one on one meeting with Guterres at the UN headquarters in New York, United States of America.
Malawi is reeling from pressure brought about by Covid – 19 as well as Tropical Cyclones Freddy, Ana and Gombe, among other forces.
Chakwera and Guterres
In consistency with my address, wrote Chakwera on his Facebook page, I restated some key issues whose solutions Malawi believes lie within the mandate of the multilateral bloc.
He added that he reminded Guterres that Malawi is in dire need of support towards post Tropical Cyclone Freddy reconstruction and recovery.
“In line with disasters induced by climate change, I also highlighted that Malawi must be among priority economies to get adequate financing so that we build resilience against climate shocks,” said Chakwera.
“I proposed that the forthcoming COP28 should be leveraged by the UN to mobilize more support for Malawi.”
Former vice-president Cassim Chilumpha has on Friday filed an application requesting the High Court in Blantyre to discharge all charges levelled against him in the treason case that dates back to 2006.
In the criminal cause Number 13 of 2006, Chilumpha wants to be discharged as an accused person or for the action to be dismissed due to what he describes as unreasonable delay in prosecuting the matter.
According to Chilumpha through his lawyers Hawkins Attorneys,it was important for him too see justice being delivered and some form of finality in the matter having spent 17 years in suspense.
Chilumpha
“Like any other Malawian, I have a constitutionally-guaranteed right to a fair trial. Such that where a case has dragged-on for as long as mine has dragged-on, there can’t be said to be any fairness,” said Chilumpha in a written response.
But Justice Ruth Chinangwa, who heard Chilumpha’s application in her chambers, reserved her ruling and and said she is will possibly deliver it within the next 14 days.
On the other hand State counsel Dzikondianthu Malunda said the case was complex as such it could not be completed within a short time hence the delay.
Malunda indicated that the State believes if given time it could still prosecute the matter to finality.
Chilumpha was arrested in May 2006 alongside former politician and businessperson Yusuf Matumula on allegations of plotting to kill ex-president the late Bingu wa Mutharika allegedly through assassins hired from South Africa.
He was charged with treason contrary to Section 38 of the Penal Code and conspiracy to murder contrary to Section 227 of the Penal Code.
President Dr. Lazarus Chakwera’s call on the global north to consider writing off debts could be a kicker and a jewel in the crown for poor countries mainly in the global south as they quest to untangle themselves from unsustainable debts.
The President made the call for debt relief when he spoke on Thursday, September 21, 2033, at the ongoing United Nations General Assembly (UNGA) in New York, the United States.
In an emphatic speech, which stressed the need to promote a sustainable planet with equal opportunities, President Chakwera said there is an urgent need to fix the areas that hamper economic progress, particularly for poor countries like Malawi including unsustainable debts.
“Malawi is in distress because its debt is unsustainable, and so our call to action on behalf of all Least Developed Countries (LDCs) on this matter remains the same: Cancel the Debts! Cancel the Debts! Cancel the Debts!,” said President Chakwera.
He said Malawi has made progress on a number of areas in its quest towards attaining the empowering Vision 2023, but added that there is still a long way to go. He thus called for urgent support from various stakeholders to safeguard the progress made thus far.
“While we celebrate the progress we have made on these goals, with seven years to go before the end of the Decade of Action on SDGs, we are not satisfied with seeing progress on only five out of seventeen goals,” said President Chakwera.
Added President Chakwera: “Not only do we need support with making gains in the areas where we are seeing little, but we even need urgent support with safeguarding the gains we have made in the areas where we are doing well. In short, we need urgent support in building resilience to inoculate our economy against the adverse effects of shocks.”
President Lazarus Chakwera’s call for debt relief is a crucial step towards revitalizing Malawi’s economy. Malawi has been grappling with a high debt-to-GDP ratio, which has hindered its ability to finance development projects and achieve sustainable economic growth.
I highlight some reasons why debt relief is essential for Malawi’s economic growth:
1. Reduced Debt Service Costs: Malawi’s debt service costs are substantial, consuming a significant portion of the country’s budget. Since 2020, Malawi has been spending approximately 20% of its budget on debt service. By reducing the country’s debt burden, President Chakwera’s call for debt relief could free up resources for other development priorities, such as investing in infrastructure, education, and healthcare.
2. Increased Access to International Finance: Malawi’s high debt levels have made it challenging for the country to access international finance. With a reduced debt burden, Malawi could become more attractive to investors and access cheaper funding sources, which could help finance development projects and stimulate economic growth.
3. Improved Macroeconomic Stability: Malawi’s high debt levels have also contributed to macroeconomic instability, with the country experiencing frequent balance of payments challenges and exchange rate fluctuations. By reducing the country’s debt burden, President Chakwera’s call for debt relief could help stabilize the macroeconomic environment, which could attract more investment and promote economic growth.
4. Enhanced Investor Confidence: Debt relief could also enhance investor confidence in Malawi’s economy, as investors would be more likely to invest in a country with a lower debt burden. This could lead to increased foreign direct investment (FDI), which could help drive economic growth and create jobs.
5. Reduced Poverty and Inequality: By promoting economic growth and job creation, debt relief could help reduce poverty and inequality in Malawi. The country has made significant progress in reducing poverty in recent years, but there is still much work to be done. Debt relief could help accelerate this progress and improve the lives of millions of Malawians.
The IMF on board
The President’s address at UNGA came on the back of a staff level agreement that government of Malawi has reached with the International Monetary Fund (IMF) on the second and also the last review of the Staff Monitored Program with Executive Board Involvement (PMB).
This means Malawi is on a firm courses to receive about $174.00 million in a new 48-month financing arrangement under the Extended Credit Facility (ECF). The agreement is subject to IMF Management and Executive Board approval.
This agreement is a result of frantic negotiations by the two parties carried out over the past defined period. The IMF team was led by Ms. Mika Saito. In her statement, Ms Saito said Malawi could access up to $174.00 million. “The IMF team has reached a staff-level agreement on the Second (and last) Review of Malawi’s Staff Monitored Program with Executive Board Involvement (PMB) , and macroeconomic and financial policies and reforms to be supported by an ECF arrangement,” she said.
She added that the successful approvals by the IMF Board of could open up doors for financing from other donors and creditors who have been waiting in the wings for Malawi to accomplish defined macro-economic factors.
Added Ms Saito: “Malawi is recovering from a series of shocks, including an outbreak of cholera and cyclone Freddy. Real GDP growth is projected to increase to 1.6 percent in 2023, with shortages of foreign exchange still weighing on economic activity. Inflation is expected to average 30.3 percent in 2023 and to decline to around 7 percent in the medium-term.”
Ms Saito commended the Malawi government for ramping up efforts to meet fiscal targets under the PMB plus adjusting expenditure to offset shortfalls in revenue, and containing government borrowing to slow money growth.
“The Reserve Bank of Malawi (RBM) tightened the monetary policy to contain inflationary pressures and resumed foreign exchange auctions. Rebuilding foreign reserves of the RBM has been slow as access to trade credit remains limited since the beginning of the year,” said Ms Saito in her statement.
She added that the program aims at restoring macroeconomic stability, building a foundation for inclusive and sustainable growth, addressing weaknesses in governance and institutions as well as strengthening resilience to climate-related shocks.
“Monetary policy will remain anchored on containing money growth. It will aim to tame inflation by ensuring positive real interest rates. The banking system remains stable though exposure to government securities needs to be closely monitored,” added the IMF team leader in her statement.
So many stakeholders, including Civil Society Organisations (CSOs) have recently come out to commend President Chakwera and government for implementing tight fiscal measures within an economic policy framework to stabilize the economy.
Just recently HRDC commended President Chakwera over the rapid infrastructure projects particularly the road network that is being constructed across the country.
Angry students at Robert Blake Secondary School in Dowa have on Thursday night allegedly torched part of the school.
Dowa Police Station spokesperson Alice Sitima has confirmed the development.
“We received reports of a huge fire at the school on the night of Thursday, the 21st of September. We rushed to the scene where we found an enormous fire that had engulfed the school library, science lab, main stores room, and one classroom block which have since been destroyed.
“However, the actual cause of the fire has not yet been officially confirmed but investigations are underway,” said Sitima.
Unconfirmed reports, however, indicate the fire was ignited by some angry students at the school who are not happy with some unspecified decisions being implemented by the school’s management.
Value of property lost due to the inferno has not yet been evaluated.
Officials from the Ministry of Education in the district are yet to comment on the development.
Member of Parliament for Lilongwe City Center constituency, Alfred Jiya, on Thursday unveiled a K130 Million construction of bridge development project near Senti at a function which took place at Dzuka Girls Secondary School.
Jiya said , according to a CDF guidelines, Members of parliament are supposed to meet the community and find out the challenges that they are going through.
“Now as one key step, the first one for that matter, I had to consult the people themselves. The key is to find out about the challenges that we meet and as the process is to begin very shortly about procurement. This is one of the right time that we need to contact the people and find out more about what they have been going through, ” he said.
Hon Alfred Jiya
Jiya said was impressed with the launch of the project saying for long time people on that area have been struggling to cross the river which joins Nankhaka.
During the function, block leader, Bickson Chunga commended Jiya for the the project.
“This project is going to save a lot of people, especially with the construction of the bridge. We have had cases whereby people were involved in accident they were almost washed away by water. The challenges we have been facing is that during the rainy season, people were not able to cross going the other side of direction. Most of it, school children were not able to go to school otherwise this is a very serious problem. Coming up with this project is more of a relief to us. And that will be almost the end of the problems that we have been going through the past two years, ” he said.
