Government borrowing eases in April


The government’s borrowing using instruments like Treasury Bills (TBs) and Treasury Notes (TNs) dropped by 68 percent in April, figures from asset management firm, Bridgepath Capital Limited, show.

In its April 2023 Monthly Economic Report, Bridgepath Capital Limited says the government secured about K85.20 billion through TBs and TNs auctions from K265.61 billion in March 2023.

During the month, K65.05 billion was secured through the TBs auctions compared to K125.78 billion in March 2023, while K20.15 billion was secured in the TNs auctions compared to K139.83 billion in March 2023.


“The TBs had a 0.7 percent rejection rate, while the TNs had a nil [zero] rejection rate in April 2023. The average TB yield marginally decreased to 16.66 percent from 16.67 percent, while the average TN yield stood at 25.80 percent,” the report reads.

Market analyst Cosmas Chigwe said the drop might be attributed to a rise in government revenue.

Chigwe said during the month, the government payments and overall expenditure were also relatively low.


“If it is not a deliberate effort that the government has implemented to reduce borrowing, we expect the borrowing level to start increasing going forward,” Chigwe added.

Minister of Finance and Economic Affairs Sosten Gwengwe was not immediately available for a comment.

However, when presenting the 2023-24 budget, Gwengwe said the government is implementing policies to manage debt.

As at December 2022, Malawi’s total public debt rose to K7.90 trillion or 69.93 percent of the gross domestic product, out of which K4.43 trillion is domestic debt while K3.47 trillion is external debt.

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