The Democratic Progressive Party (DPP) has described Malawi’s economy as in a state of collapse as it touts what it says is a return to proven leadership and rallying people to electing a DPP government this September.
In his reaction to the budget document, DPP’s Thyolo Central Member of Parliament Ben Phiri says the 2025-2026 Budget has an economic context of MCP’s broken promises and lies noting that despite telling Malawians that the economy would improve within two years, it has rather worsened.
Phiri faulted the current administration as only good at making empty promises noting that it has mastered the art of lying.
He said DPP has been providing constructive advice on how to manage the economy, but sadly the ruling Malawi Congress Party government chose not to listen opting to run the economy in their own way.
The lawmaker stated that the economic theory has resulted in Malawi’s debt skyrocketing from K4.4 trillion in 2020 to today’s K16.8 trillion with nothing to show on the ground.
He said MCP found a functioning Extended Credit Facility (ECF) program with the International Monetary Fund (IMF) which DPP left in good shape in 2020 but has been destroyed.
“It is pathetic that they cannot finish even 1 year of successful implementation. What you did is treasonous and criminal; Malawians are suffering today because of you. Let me advise my fellow Politicians that you can do propaganda with anything you want but not with the economy. At the IMF there is no DPP government, neither is there an MCP government so going there purely because of politics has costed Malawians.
“Fellow Malawians, you know that this country is now on autopilot and is on a dangerous path of decline and collapse. MCP promised to improve the economy. Fellow Malawians, has the economy improved? No! The economy has since jerked back in their hands”.
Phiri noted that the national budgets are also failing due to borrowing from commercial banks at high interest rates arguing that MCP has increased interest rates through the Reserve Bank of Malawi which has hiked the policy rate to 26 percent.
He said with the 26 percent, banks have no choice but to trade with the government as they consider it as low risk than Malawians hence there is no money on the market for businesses.
“Fellow Malawians,the economy is dying because of heavy borrowing by this clueless MCP administration. Malawi has a high debt burden where Public Debt has increased by over 400% from about 4.1 trillion Kwacha in 2020 to 16.1 trillion Kwacha in less than 5 years.
“Malawians, as you can see, the MCP government has put you in a serious debt crisis. They have borrowed K12 trillion in 4 years alone! Is this a government you can trust? Sadly, the domestic debts are being spent on consumption instead of development projects”.
The legislator also lamented on the ever-increasing cost of living not commensurate with people’s salaries.
“Fellow Malawians, by now you also know that the MCP administration has failed to manage prices which are rising every day, while people’s incomes are losing purchasing power. Salaries continue to lose value, and civil servants can no longer afford to pay for necessities.
“Fellow Malawians, as you can see, you can no longer afford to pay for the basic needs such as food, housing rentals, transport fares, and payment of school fees for your children. You know Fellow Malawiansthat the cost of living was better and affordable under the DPP administration”.
The Thyolo Central lawmaker stated that the devaluation of the Kwacha by more than 100 percent in just four years has made it one of the weakest currencies in the region now, the first in the country’s history.
Making reference to the recent Pastoral Letter by Catholic Bishops where they are asking, ‘Who Will Roll Away The Stone for Us?’ The Party expressed its readiness to roll away the stone.
