Malawi government can’t do without donors!

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Malawi government is expected to collapse once it finishes using the foreign exchange it had stored in its reserve if donors fail to resume with aid by end of this year. 

In June this year, Reserve Bank of Malawi (RBM) disclosed that it was holding forex reserves of up to US$750 million, the private sector had US$300 million while commercial banks were keeping US$10 million in forex stocks.

The country has been consuming the foreign exchange from its reserves without finding other means of pumping back.

The current depreciation of the Kwacha has been coupled with the sale of tobacco but surprisingly there has also been an increase in depreciation and economic instability. 

The development has angered opposition Umodzi Party (UP).

John Chisi

Chisi says Malawi govt has run out of options.

In an interview with Malawi24, UP leader Professor John Chisi said government should understand that it has not generated forex from this year’s tobacco sales and donor aid is the only means of sustaining the country’s economy. 

This year’s tobacco sales earned the country US$300 million down from US$362 million last year following poor sales and reduced prices.

According to Chisi, the only alternative to resuscitate the economy is through donor aid. 

He attributed the drop of Kwacha to the arrogance of ruling Democratic Progressive party (DPP) and its failure to engage donors. 

“Malawi has no ability to create things and manufacturing base. To get the needed services the country depends on donor support. Over the years donors have kept on assisting.”

“Despite the excessive loans that the country has failed to pay back donors were still assisting. They have been giving in 40% budgetary support. This 40% was forex and it is the same that was used to pay civil servants,” stated Chisi while warning that the country will soon collapse.

 The UP president has also called on Minister of Finance and Economic Planning Goodall Gondwe to withdraw the statement he made on one of local Televisions.

Gondwe was quoted as saying that Malawi will never have an improved economy if the weather is bad again this year. 

“The finance Minister has categorically openly told the nation that donors are not coming. That we will never be guaranteed of improved economy if we don’t have good weather. Can government really depend on weather to look after its people?” questioned Chisi.

Tobacco volumes have been reduced this year as a result of heavy rains and floods that hit most green gold producing districts in January.

This has highly contributed to staggering of the country’s economy and to the depreciation of local currency.

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72 Comments

  1. Malawi will always remain poor and depend on donors if our leaders wont change,corruption and mismanaging of government funds,how do they expect malawi to stand on its own while they are busy collecting money from poor peoples pockets,high taxes and even failing to use those money in what will benefit the country?

  2. Malawi will always remain poor and depend on donors if our leaders wont change,corruption and mismanaging of government funds,how do they expect malawi to stand on its own while they are busy collecting money from poor peoples pockets,high taxes and even failing to use those money in what will benefit the country?

  3. Malawi will always remain poor and depend on donors if our leaders wont change,corruption and mismanaging of government funds,how do they expect malawi to stand on its own while they are busy collecting money from poor peoples pockets,high taxes and even failing to use those money in what will benefit the country?

  4. its unfortunate that people would insult someone for an opinion . That’s sad but little knowledge is dangerous mugabe did the same and come to this country now there is no industry we actually buy stuff from south africa . Capital is in the west now the very Mugabe is realising after destroy our country we don’t have our own money , what is an independent country with unemployed youths roaming the streets no electricity no drugs in hospital . Where did china get the money to develop we should be wise and do what’s good for our countries than cheap talk . Pride doesn’t take us anyway . We shall remember when the going gets tough but malawi still has an opportunity so don’t throw it away with emotional thinking

  5. Malawi can do without donors koma vuto ndi yoti amalawi tasiya kuganiza chifukwa chozolowela kulandila. Nawonso azungu amatidoda anadziwa kale atithandiza zaka zambili ndinso tinafa manja.

  6. How can malawi collapse? The donors contribute only 40 percent of our budget.kungokhala ndi mitu ya mbuzi.we contribute 60 percent,zingativue kupezela njira zowonjezelera 40 percent?azungu akufuna azitigwilabe ukapolo,we r not slaves anymore azipita basi.

  7. Sindina wonepo munthu umakwatira ndikuti tikapempha. Dziko simungamadalire kupempha daily muzakula liti. Zaka over 50s independence kumayamwabe.kaya chigwe pano chatose.Muli ndi nthaka yabwino,ndimadzi wokwanila LAKE MALAWI.

  8. Tingoti kuzidalira tikuyiwala abale kumudzi kut azithandiza nd chiyani,guyz lyf is tough kumudzi osamangolakhula kut tizt zanu zili boo,am in dillemma.

  9. If Malawi z poorest country then y ignoring donors. Hope u man z 1 of cashgate. What i kno z that a sick person runs 4 medication. Then y not Malawi if SA z asking donetion.

  10. Malawians open your eyes. When our Ibu says we can do without donors,he doesn’t say it in good faith. He knows that he is part of 92 and 577billion cashgates , He is aware that if he can ask donors to resume aid,they will first need to know where their 92 billion and 577 billion went. This old man is a criminal if you never knew. He is here to steal and live like a king,nothing else.

    • Who r u 2 stop me, if u dot know u better kip quit, i ve bn in Zimbabwe pipo died, now they r much better am sure they will cont making their economy grow. I like de way peter is doing in gvt, he is running a country without any donor, yes many challenges r there am sure with de way he is doing these will b over at a certain period of time.

    • Bwana Enock Mossolin U Can Compare Malawi Zimbabwe Zimbabwe Has Mines Mzungu Kumuthamangitsa Kumakaniliramo Mpaka Kufera Mom’mo Ku Malawi Mzungu Angapinduleko Chani?

    • Lets work hard 2 dev Malawi, u know what, if we can not dev ourself those mzungu can not do anything to Malawi. Tell me apart from QECH which building was built by Britain or America in Malawi?

  11. these leaders that see no solutions r not leaders at all,aleader shud giv us hop-not say “am sorry we have to give in,when we backed into acorner-no.my leader shud tell me “will make it will find away,i’l take us to the othr side if its the last thing i’l do” xpecialy wen he knows that we hav to get to paradise,thru storms,rocky mountains,savage lands,where the unknowns r anything but gud… Now thats alead i will follow to my death.

  12. this guy is simply tryin to gain favor of the lazy ignorant majority that dont know beta,if he & the pple bhind him really blieve wat his sayn,then UP is simply anothr blind blood suckn leech of aparty leadn nowhere

  13. God have mercy we have leaders that see the future and tremble. indeed floods have done so bad to our economy lets pray for good rains and Gods should revive and reform us. Others survived hope we will too.
    leaders fear God give him glory he shall be with us always.

    You leaders do not pollute our country by fulfilling bible prophecies better not born than picking pen and sign those fake moneys. Avoid wrath of God be clean though people turns unto you once you get disappear yes they will know the prophet existed amidst us.

  14. I wil not happy if de donnors wil resume cuz azungu atitola zibwana.de begining always tough butas tym goes 1 dy things wil b fine.kupempha pempha sikwabwino dat is wy azungu said go practic gay wat is dat? Dey must help us just bcu de marrieg of de same sex.wat arubish? Stand up malw and find de solution not aid.

    • No need of donors coming back what is 40% after all, does it mean we wil be donor dependent 4eva anthu ena ur jst educated 4 nothing connect this to stupid malawian selfish politics

  15. Another persitent disease in Malawi is that no matter how bad the economy and Government announcing measures to cut spending, top civil servants in OPC and other government ministries and department continue globetrotting and other non essential expenditure which benefit them personally. The ministries effect other spending cuts but not for globetrotting for top civil servants. They would rather delay payment to suppliers but not the globetrotting. I do not believe all these travels are essential and I must point out that this disease has been there for decades even during all the past administrations

  16. ationge ndiye muwauze ma dala anutu ayendetse dzikoli tazizidalilan osamangot chilichose koma ma donor aaa nawo ali ndi mavuto awo kwawoko ndiye asatiyelekedwele kut satithandiza tiyen tigwilane manja sizot achokezo ayi

  17. Choka iwe kuzolowera kupempha basi, kukula ndi moyo odalira eti? u dont depend on self independant, ukhaulatu okonda zothandizidwa iwe

  18. We import too much than we export. I wonder why pple say we should work hard. Tilimbikila cha ntundu wanji. Let the donors come back, tachepa nazo

  19. Shame on u….Where are u writting from? iz it mozambique??? Zidze pano ndi zatonse my friend… and u are lucky if ur anganga stays in the city….enjoying ..

  20. Even #china & #usa were same as we are, bt they work relentlessly, till they are donors today. As a nation we need to stand up and do an extra-ordinary thing to make our nation an economic indipendent…..#MW rise….

  21. Amwene! Titati tidzikhuthule amalawi tonse that we should work for food like Taiwan, can’t we reach somewhere. Kungoti tidazolowera kungolandira. Tidzipewako donor this, donor that. #ComeOnMalawi!!

  22. Peter Mutharika amene amatchedwanso kuti bwampini is in a fix, or in a dilemma he has to choose Malawians or himself, by choosing Malawi he has to resign and let a clean person lead the country that donors can come back for a rescue 2 choosing himself is to stay with a crisis which killed his own brother because he knew exactly where the country was going which caused his cardiac issue and phuu! dropped dead, well he has to choose since he is at the centre of the biggest cash gate which donors wants the culprits to book, will he arrest himself no = dilemma.

  23. We just say malawi should export, export what? Malawi is failling to produce for its citizens then how can it export? The toothpicks, bananas, oranges, eggs, soap, clothes etc are supplements. We only manage to export sugar tobacco and tea and we can not start others from nowhere, we need astrong base and avibrant economy base which can be provided by the donors. It pains to see the foundations there laid by Kamuzu but not being used, ie rail, schemes, college of agriculture, NRC, companies, youths etc. POLITICS AT ITS BEST.

  24. So long as we don’t export our goods and services outside. We shall still need donors. If we are not carefull we are again going to face fuel problems. In Malawi we inport almost everything from China and other countries. Talk of bananas, toothpick.