The United Kingdom (UK)’s decision to cut its foreign aid budget from 0.5 percent to 0.3 percent of gross national income will likely have a significant impact on aid-dependent countries like Malawi, analysis have warned.
The UK aid cut comes as other major donors, including the United States Agency for International Development (USaid) and the European Union, have started shifting their priorities.
The latest development could mean the £51,000,000 the country is expecting from the UK in 2025 could be at risk.
Government spokesperson Moses Kunkuyu has since acknowledged that since the time of Covid, the world is reshaping in many aspects.
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“Nations will have to re-strategise and realign with objectives that suit their individual aspirations. New friendships and partnerships will be born. With the direction that Malawi has taken in safeguarding its mineral endowment, Malawi will be the most beautiful girl in town very soon.
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“We believe the usual avenues of providing counsel to government will still be utilised so that we maximise gains by engaging in conversations where ‘tough decisions’ can be elaborated,” Kunkuyu said
He expressed hope that the issue of perpetual dependence on aid would become history.
Last week, UK Prime Minister Keir Starmer said his government would not pretend that cutting off aid was going to be easy.
During the same week, UK International Development Minister Anneliese Dodds resigned in protest, accusing Starmer of undermining global poverty alleviation efforts and strengthening the influence of Russia and China in Africa.
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Meanwhile, humanitarian groups and economists have concurred with Dodds, warning of severe consequences for vulnerable populations in Malawi, which they say rely heavily on donor funding for critical development projects.
For instance, Malawi Human Rights Commission Executive Secretary Habiba Osman said the potential cut meant the Malawi Government needed to explore alternative funding sources.
She said the transition may not be smooth, such that vulnerable populations were likely to bear the brunt of such cuts.
She said Malawi relies heavily on foreign aid to run critical sectors such as health, education and general infrastructure development projects.
Osman said Malawi even relied on foreign assistance to run national elections.
“A cut in UK funding could stall, or even halt, ongoing development projects. Programmes [that are] supporting poverty reduction, water and sanitation, and food security efforts may experience financial shortfalls,” Osman said.
Economist Velli Nyirongo concurred with Osman, saying the UK’s decision to scale down aid to Malawi was a concerning development, particularly as the specifics of how much funding would be cut remained unclear.
“The UK has long been a key donor to Malawi, but shifting global priorities suggest that its focus is changing. This raises significant challenges for Malawi, as crucial sectors such as climate change, maternal health and education may face critical funding shortfalls,” Nyirongo said.
On his part, Human Rights Defenders Coalition Chairperson Gift Trapence said Malawi risked facing increased poverty levels and associated consequences.
“The UK has been a key donor in Malawi’s health sector, particularly in fighting malaria, HIV and Aids and maternal health. Reduced funding could lead to shortages of essential medicines and medical supplies.
“Social protection programmes that are benefitting vulnerable populations, including children and the elderly, may also suffer,” Trapence said
In the 2023-24 fiscal year alone, the UK spent about £16,340,000 on support to countries it supports.
