EU rules out budgetary support for Malawi

European Union (EU), one of Malawi’s largest donors, has ruled reinstating budgetary support any time sooner even the country meets the IMF extended credit facility.

Finance Minister Gondwe: Tough times

Finance Minister Gondwe: Tough times

A senior EU official from Brussels who is in the country said Friday, Malawi has a lot to do to ensure that donor money is not looted as was the case with the infamous ‘cashgate’ scandal.

The official, Fernandes Ahnies said the government of Malawi will continue getting EU aid through the development aid which has since been increased by 220 million Euros, hitting 560 million Euros.

The official said the money will continue being used in the sectors of agriculture, health and good governance.

The revelation has not come as a surprise in government corridors of powers as President Peter Mutharika and Finance minister Goodall Gondwe have openly ruled out the return of most donors for the budgetary support, whose pull out has adversely affected the economy which is fast collapsing.

Ministry of Finance spokesperson Nations Msowoya said the government is widening its tax base to fill the gap left by donors.

“We are looking at how best to tax the informal sector,” said Msowoya pointing fingers at the untaxed unskilled labour which forms a bulk of the Malawi economy

. Msowoya said soon the government will commission a study on this which will be led by experts from the IMF and World Bank. He could however not say how much new taxes the government is expected to collect, saying everything would be known after the study.

On Thursday, renowned economist Henry Kachaje warned local businessmen to avoid getting bank loans in the wake of high interest rates and high inflation due to a slump in the economy.

Speaking on MBC, Kachaje said: “This is not the best time tto be borrowing from banks.”

Finance minister Gondwe has since urged Malawians to hold their patience, saying the government is doing all it can to fix the ailing economy.

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Winston Msowoya
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Winston Msowoya
7 months 14 days ago
Ndithudi Nabetta,mwanena zoona kwambili.Why do we hate each other like that.Makolo Attu anali kukondana kwambili kunalibe zakuti aTumbuka,aChewa,aLomwe na zina.We are failing to address authentic and real issues which truly affect our lives.We must get united in the middle of economic catastrophe.How would people beyond our borders look at us? As it is now,it is not only one region that bears the blunt of the economic downfall,but all three regions are victims of lack of food.Under these circumstances,we need real unity and resilience to combat deadly economic and political bankruptcy.We have the will and capacity to get out of the… Read more »
Mlauzi
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Mlauzi
7 months 15 days ago

Greece brought the problem upon themselves. Malawi is an interesting country. Everybody is crying for donor support nobody is coming up with innovative ideas about how to get out of this shit hole. Why is Asia not suffering? They have learnt to do without begging. How on earth can theft of USD24 million make a whole country poor. If theft was an impediment then Kenya could have collapsed bearing in mind that it lost USD860 MILLION. We are just dull as people.

Kaziulika Chimugonda
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Kaziulika Chimugonda
7 months 15 days ago

I have a problem with those who say, tisadalire EU koma tikonde dziko lathu. I want those people to advise Govt. to stop looting first then tell us to love our country. Govt seeks to broaden taxation base. What about Amwenye amene akupatsidwa waver on luxury cars. Are we serious? President ndi Ndunaayambe kukhoma mtsonkho kuti tikhulupirire. Amwenye onse azikhomanso mtsonkho popanda katangale. Malawi should not be a Manor Farm (Animal Farm) where some are more equal than others.

Winston Msowoya
Guest
Winston Msowoya
7 months 16 days ago
I think Kakha Erutu had written his views just after waking up from a nap.So he wants our dedicated Journalists and reporters to write bunkum? Bravo our Journalists and Reporters you are just responsible and authentic sons of our beloved Malawi.Erutu’s comments prove that he is living in a deferent world.It is egregious for Eruru to uphold evil which is devouring our nation and our decorum.The present regime is bent on stifling our identity that will have a devastating future for our children and the following generations.Mr.Erutu,it is indeed,democratic to share your views and it is also democratic to the… Read more »
nabetha
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nabetha
7 months 16 days ago

Kodi abale mumawerenga zimene EU inawapanga abale awo aku Greece. Tamawerengani kuti mudziwe mmene adawakhaulitsira kuti mumvetse kuti alibe nanu ntchito.
Akulu adati chimanga chopempha samanga nacho NKHOKWE. Anthu okonda mtundu wawo sangamalilire anthu adera. Asiyeni azungu sakufuna kukuthandizani. Tiyeni tipemphere kuti ambuye atipatse mtima okonda DZIKO LATHU. Kuti tithe kuzidalira tokha.

Mytake
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Mytake
7 months 16 days ago

It is obvious donors intensely dislike the Peter Mutharika DPP govt because of the terrible history of DPP. Peter Mutharika is a disaster for Malawi.

Nambewe
Guest
Nambewe
7 months 16 days ago

I think politics and development are in the same vein and they work together. If the two were separate cash get would have simply been a political matter but how can you say not having drugs in hospitals which is caused by political misappropriation of funds is only development? who makes policies that affect development?

No what needs to change is the Malawian mind set! Be angry properly! Demand standards that are befitting of a human being! and get broad minded to understand that if you steal you will not get rich you will simply delay DEVELOPMENT!

American
Guest
American
7 months 16 days ago

As an American I hope America NEVER GIVE MALAWI ANOTHER DOLLAR!
Leave this ignorant, lazy, arrogant and Evil country to help themselves
They even want our money without conditions!…
Shit hole of a place

Mneneli
Guest
Mneneli
7 months 16 days ago
Hmmmm!!! There is hypocrisy here. Tell me, are NGOs or whichever channel of transmitting the aid money that the EU and other donors are talking about better placed to trace and prevent fraud than Government machinery? Which, between the two, has better facilities, resources and human capital to deal with fraud? A Malawi, let’s distinguish between politicians and a government system. Politicians come and go. We elect and de-elect them every 5-years. Amongst them there are genuine state persons and there are thugs. Unfortunately most of them belong to the later because they did not go far with their education… Read more »
mtochi
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mtochi
7 months 16 days ago

I hate this Lomwe government to shit

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