Opposition, government clash over IMF programme and national economic outlook

Sharp divisions have erupted in Parliament over Malawi’s IMF and World Bank engagements, with the opposition accusing government of lacking transparency and a recovery plan, while Finance Minister Joseph Mwamvekha insists the international programmes safeguard national interests and will not harm Malawians.

Written by Sosten Mpinganjira (Senior Reporter) Published: 21 hours ago News from: Lilongwe
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Tension continues to rise between government and opposition benches in Parliament following sharp differences over the country’s economic direction and ongoing engagements with the International Monetary Fund (IMF) and World Bank.

Responding to President Prof. Arthur Peter Mutharika’s State of the Nation Address (SONA) which presented in the National Assembly on Friday, Leader of Opposition in Parliament, Simplex Chithyola Banda, accused the government of lacking a clear economic recovery plan and transparency in its dealings with international lenders.

“The SONA does not provide any real recovery roadmap for Malawians. We need to know what conditions government has agreed to with the IMF and World Bank. Some of these prior actions, such as restrictions on recruitment, promotions, or wage increases, have direct consequences on ordinary citizens,” he said.

The opposition leader said his office had identified several “gaps” in the president’s address, particularly concerning the economy, food security, education, and governance warning that if the government accepts stringent conditions tied to financial aid, ordinary Malawians could bear the brunt of austerity measures.

Leader of Opposition in Parliament Simplex Chithyola Banda

“We must not punish Malawians with painful economic conditions. If these institutions are dictating measures that limit growth or employment, government must explain how it intends to protect its citizens,” he said.

Chithyola Banda further argued that the government’s free secondary education policy remains “a partial subsidy,” as many families still pay fees.

He also criticized the administration’s approach to food security, noting that the number of fertilizer subsidy bags per household had been cut from four to two, reaching only a fraction of the targeted population.

The Leader of Opposition also faulted government procurement decisions, alleging that Malawi could have saved resources by purchasing maize locally from commercial farmers instead of importing it from neighboring countries.

On governance, the opposition leader raised concerns about “politically motivated” dismissals in the civil service and the growing trend of executive appointments being made without parliamentary oversight.

“We want equitable access to justice and respect for human rights. Being quiet doesn’t mean we won’t act. My leadership will ensure strong oversight and accountability without fear or favor,” said Chithyola.

Chithyola Banda emphasized that his office intends to maintain an evidence-based, issue-focused opposition, promising to develop a roadmap with clear indicators for tracking government performance.

In response, Minister of Finance and Economic Planning Joseph Mwamvekha dismissed the opposition’s claims, describing them as “politically motivated” and intended to undermine government efforts.

Minister of Finance and Economic Planning

“I strongly believe the Leader of Opposition has brought this issue to the floor for political reasons. As the Malawi Congress Party (MCP) and Ministry of Finance, we have managed our programs with the IMF responsibly. We have never agreed to any condition that would harm Malawians,” he said.

The minister assured the public that any new IMF engagement would prioritize national interests and economic stability.

Mwamvekha added that ongoing discussions with international financial institutions are already yielding positive results.

“If we are to go into a program with the IMF, I want to assure Malawians that it will be a program designed to benefit them. We will make sure that no condition imposed undermines their livelihoods.

“As a media, you have seen that people are already benefiting from the meetings we’ve held with the World Bank and IMF. That should reassure Malawians that these partnerships are working in their favor,” he said.

Meanwhile, Speaker of the National Assembly Sameer Gaffar Suleiman has given the Leader of Opposition until Thursday afternoon to bring into the August House evidence of his allegations.

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