Malawi’s domestic debt growing at an average of 15.8% per year – Report

A report released by Center for Social Concern has shown that Malawi’s domestic debt is growing at an annual average of 15.8 Percent.

This has been revealed on Tuesday during the Media orientation session on Malawi indebtedness and right to food that Center for Social Concern organized in Lilongwe.

Speaking during the orientation session, The Director for Center for Social Concern, Vitus Danaa Abobo said to date Malawi’s Public debt has grown over 3.3 Trillion Malawi Kwacha which is over 2 times Malawi’s National Budget.

Abobo said the fact that it is estimated that Government will be spending over 14 Percent of the budget to service loans describing it as a worrisome development to the growth of the country’s economy and if not checked, Malawians will be wallowing in abject poverty.

He said they involved the media to help in sensitizing Malawians about debts so that they know what is happening in the country so that every Malawian can take part in improving the debt problem we have in the country.

He further urged Journalists to dig facts and write more about debts so that Malawians can understand problems and what to be done to reduce the debts.

In his remarks, a consultant at Mlomjoji and Partners Consulting, Leslie Mkandawire, said the issue of debt should be a concern to every Malawian because they are the ones who pay tax.

Mkandawire said if the debts keep growing every year like it is currently, it can affect the development of the country.

He said to overcome this problem, there is need to invest the debts to sectors that will help in paying back the money.

He also said there is need to involve citizens in the debt contraction process among others to improve debts.

He said the parliamentarians should take a responsibility to improve debts in the country by following up on the implementation of the debts so that they should be used for intended purposes.