By Daniel Zimba:
UTM Party president Dalitso Kabambe, who is former governor of the Reserve Bank of Malawi (RBM), has stressed the need for sustainable economic policies that prioritise national growth and stability over political expediency.
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Kabambe shared his insights on the country’s economic landscape during an exclusive interview which aired on Times Television, Times Radio and Facebook [Times 360 Malawi] on Tuesday evening.
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He backed the International Monetary Fund (IMF)’s decision to suspend the Extended Credit Facility (ECF) with Malawi, arguing that the situation resulted from the Malawi Government’s mishandling of loan agreement conditions and resources.
The government, through the Ministry of Finance, announced the suspension of the ECF through a statement that was released on May 14 this year.
According to Kabambe, the Malawi Congress Party (MCP)-led government has struggled to control the economy, mainly due to insufficient investment in income-generating programmes and over-reliance on international aid.
This reliance, he said, had led to excessive national debt accumulation, frequent devaluations of the Kwacha and rising inflation rates, “adversely affecting the living standards of people in the country”.
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Kabambe further criticised the current administration for employing more civil servants than necessary, particularly in government ministries.
“We have 18 ministries with 74 principal secretaries along with numerous presidential advisers, resulting in duplicated positions and increased economic burden,” Kabambe said.
The former RBM governor further advised the current administration to follow the example of Zambia and Kenya, which have reportedly succeeded in stabilising their economies by enhancing their currency values amid challenging conditions.
Kabambe then warned that President Lazarus Chakwera’s administration faces a critical choice between focusing on economic stabilisation for the sake of the people or continuing to pursue political agendas aimed at pushing for his continuity in government after the upcoming September 16, 2025 Presidential Election.
He mentioned potential strategies for restoring economic stability, including trimming the civil service and reducingthe frequency of domestic and international travel of government officials.
However, Kabambe doubted if the current administration could afford to take economic decisions that would redeem the country’s economy, reflecting on the time remaining before the September 16 polls
The UTM leader said if elected into office on September 16, 2025, his administration would make cautious economic decisions that prioritise the revitalization of the economy.
However, RBM Governor MacDonald Mafuta Mwale assured the public during an All- Inclusive Stakeholders Meeting organised by the Public Affairs Committee that the government was working hard to address the economic shocks faced by the country.
Mafuta Mwale urged Malawians not to panic, saying the government anticipated substantial foreign currency inflows in the near future.
Secretary to the Treasury Betchani Tchereni recently said, on a Times Radio programme called ‘Malonda Pa Malawi’, that the ECF’s suspension was due to challenges spotted in implementing the loan rather than the government’s failure to adhere to its conditions, countering public speculation.
