In our weekend editorial and in the comment MIJ FM is discussing the recent resumption of support from World Bank to Malawi. We make our observations and cautions.
The comment has been written by Georgia Chirombo.
”The decision by the World Bank to resume direct budgetary support to Malawi has come as a relief and offers hope for continued efforts to turn around the country’s economic misfortunes.
More so, when the assistance worth over 232 billion kwacha comes in the face of an economic downturn amidst the suspension of financial support by international partners due to mismanagement of funds.
Not only has private sector growth and infrastructure development declined, the nation has also become debt ridden as more and more funds were borrowed to support the many development activities.
With Public debt having already reached an alarming level of 9.41 trillion Kwacha as of March 2023 to account for 75 percent of the country’s GDP, an economic crisis would perfectly describe the status quo.
Fortunately for the country, the World Bank assistance coincides with the approval of the Extended Credit Facility worth over 290 billion kwacha by the International Monetary Fund, further boosting resources for economic recovery.
Surely, if such funds are put to good use, this could save the nation from the burdens of a crippled economy whose cost of living is unbearable with inflation at 26.9% as at end October 2023.
Such misfortunes raise high expectations that authorities will ensure the funds are invested in productive sectors and not for consumption to boost economic growth.
Also, with adverse El-Nino weather conditions expected to worsen the food situation and over 4 million Malawians estimated to face hunger, it is paramount to prioritize investments towards food security.
Further, with Malawi’s economy projected to grow by only 1.4% in 2023, authorities need to make serious investments in the energy sector to boost power supply so that industries operate at full capacity to maximize production.
However, a big concern has been the tendency to abuse public resources, the evil that has further widened the gap between the rich and the poor.
This challenges government to strengthen the implementation of monitoring and evaluation systems to ensure the funds are used for their intended purpose and that culprits face the law.
It also calls on stakeholders, including the media and civil society organizations to strengthen their fight in demanding transparency and accountably from government on public expenditure.
All things said, a plea remains to President Lazarus Chakwera, to refrain from justifying the present economic problems on the sour past.
As at now all Malawians need are solutions moving foward!! ”
