Chihana Reacts to World Bank Economic Report; Chakwera with Pedestrian Economic Understanding

AFORD President Enoch Chihana says there is an urgent need for the new government in September to focus on the economic hardships Malawians have been subjected to by the Chakwera -led government citing deep concerns over rising economic problems and governance challenges.

He was reacting to the World Bank Report that has indicated that the Malawi economy is in ICU; struggling on multiple fronts.

According to the Report, titled “Navigating Uncertainty” it says the growth of the economy is at the tortoise pace, the economy is tumbling, prices of basic needs are rising and millions of Malawians are scrambling to make ends meet due to poor leadership.

In his quick response, Chihana says September 16 is the defining day for Malawians to address the myriad of challenges they are facing under President Dr Lazarus Chakwera.

“AFORD and other well meaning opposition parties are here to rescue the sinking boat. This government has not only deepened poverty across the country, but it has also set new records in wasteful spending and corruption.

At a time when millions of Malawians are struggling to survive, government officials mainly the elites in ruling the Malawi Congress Party-MCP are living in excess and approving for each other’s budgets to travel abroad at the expense of the common poor Malawian. So a pity,” said Chihana.

The report from the World Bank has come at the time Malawians go to the polls in September and it reinforced opposition messages on the economy.

According to the report, it also indicates that Malawians are going through hunger crisis as maize production which is the main staple food will be in deficit and the limited foreign reserves means importing of relief food and fertilizer will be limited as well.

The report also says the government overspent its budget in 2024/25, pushing the deficit to 10.5% of GDP and that in the coming fiscal year, debt repayment alone will eat up half of all tax revenue, leaving less money for service delivery mainly in critical areas of education, health and agriculture.

The bank has since urged urgent intervention to stabilize the economy, support local producers, and defend the poor families and it has warned that if nothing is done, Malawians are expected to be unredeemable people.

With less than 60 days before elections, many Malawians see the current leadership as not delivering on their key promises to improve the country’s ailing economy, food security, and corruption. Chakwera’s reelection bid is jeopardy as his government is very unpopular with the inflation crisis.