‘Tough times’ ahead, warns Malawi Finance Minister

Finance and Economic Planning Minister Goodall Gondwe has warned Malawians to brace themselves for tougher economic times ahead.

Gondwe: Warns Malawi 'tough times ahead'

Gondwe: Warns Malawi ‘tough times ahead’

Gondwe delivered the implicit message in Lilongwe Tuesday during a high level dialogue between Cabinet Ministers and the Civil Society Community (CSO’s) where the latter had demanded an explanation of Malawi’s economic stance.

He, however, expressed optimism that the country with weather the storm of economic recession.

The Finance Minister stressed the need for the country to find own resources to finance the health and education sectors as well as subsidies after IMF challenged the country to attain economic independence in a short period of time; depending on internally generated resources for expenditure.

“ It is not possible to have 100 percent funding in government with donors withholding 30-40 percent of the funds. The IMF [International Monetary Fund] has advised us to be able to cover own day-to-day expenditures in two to three years.

“Government is embarking on stringent reforms to cut expenditure and we will have monthly performance audits,” said Gondwe.

“Production is not as high as it used to be, so we cannot expect to generate as much revenue from tax as the case was before,” said Gondwe further explaining that the low production is partly due to the unruly weather conditions that hit the country in the last growing season.

Gondwe said with the right strategies which government has put in place, the country would soon regain her economic growth but called for “ stringent adjustments and reforms in our expenditure of resources.”

He said Malawi will have to, among others, reprioritise government’s activities and  broadening the tax base as one way of collecting more revenue.

“A number of people who are not used to paying taxes will have to start paying taxes. We cannot afford a luxurious life under the circumstances,” reasoned the minister further adding that public resources would have to be used as intended and efficiently.

IMF has suspended loans to Malawi for failing to cut its wage bill and improve revenue collection, making it less likely Western donors will resume budgetary aid.

Budget assistance from Western donors worth millions of dollars has been withheld for two years now —amid concerns of Cashgate, the plunder of public funds at Capital Hill— Such aid has historically accounted for about 40 percent of the national budget.

Finance Minister said overnment is geared to improve business environment and the macroeconomic situation in general.

Gondwe said he is “ absolutely confident” that Malawi will end up with a robust and positive growth.

The IMF said Malawi’s economic growth would slow to 3 percent this year from 5 percent in 2014, reflecting a decline in the maize harvest and weak private- sector investment and consumption.

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53 thoughts on “‘Tough times’ ahead, warns Malawi Finance Minister”

  1. vilili says:

    Hehehehe. Musova

  2. Kamuna says:

    Mr Gondwe, you are one of afew individuals who benefit and are happy with the same situation. Why donors always quit wen DPP is ruling? Cashgate existed since UDF, DPP, PP, DPP regimes, Why exergerating?. When Gondwe is hired to be min of finance there are always extuses on c. servants salary hikes, he is jelousy of them and he is hapy when they beg from him, not so? Please hav a human conciousness on poor c. Servants. Can u stretch ur arms to receive a salary of K40000 the whole month? Or kusaphunzirako. The money u see in that big pot is for us all malawians let’s share as per need.

  3. phiri says:

    1.Well soon begin to clap hands for government….. Gondwe
    2.Do sex while lights are on ….. Kaliati

  4. Chipwailacommentetor says:

    It z just tax collection u think Mr Gondwe? Y not cuting unnecessary trips with more than handred pipo? U must deep ur head down into water contener n come with tangible measures

  5. ochewa says:

    improve revenue collection…..how can you improve revenue collection when the same big DPP politicians doesn’t want to pay taxes…they are the ones who invade taxes….MRA being poorly managed by DPP appointed bosses …employees at MRA are ridiculous underpaid …..and you expect to collect more

  6. ochewa says:

    is it not the same Gondwe who said last year that the economy is going to improve…amalawi ayimba lokoma now he is saying we have to expect tough times…..go to heal you old man with cheap politics

  7. gibbbbbbo says:

    tili naye MULUNGU wathu wamoyo, sadzalora kuti ana ake avutike…….ndiwe ndan kuti utiopseze iwe?

  8. Mania says:

    is that a warning or what? am tired with that headline this year bwanji…? I thought the reason of forecasting the economy is to put in right measures? what are you doing big head Gondwe…?

  9. Nathan says:

    The president and his fellow robbers must reduce their unnecessary expenditures. How can Pitala be chattering private jets while the country’s economy is at its lowest? Boma la mbuzi ili! Musonkho wa chani apa, mumangofuna kubela anthu basi. Ngati muli serious ndi economy, nonse oyendetsa Boma mudziyenda pa Njinga za Kapalasa kuti ndalama zomwe mumawononga pa ma galimoto ndi ndege tigulire Mankhwala mu dzipatala.


    Hon. Minister. You need to revisit the Fertilizer Subsidy Package more especially the Legume seed subcomponent. I for one does not believe that this subcomponent has ever achieved its project objective as a bigger chunk of the seed issued to farmers has never been planted. Farmers recieve and consume the seed immediately.

    Legumes have also been distorting farmers choices of seed as they have been forced buy maize seed not suitable to their ecological zones if they were to access the free legumes.
    If anything this subcomponent has benefited the seed suppliers.

    You can do away with the legumes and channel the resources to the maize seed which you are struggling to fund. Farmers will not grumble on this. It is the suppliers who will grumble and you will have no businees with this.

  11. Kalindilila says:

    This government has no moral authority to ask Malawians to brace for tougher times ahead when the executive wallows in extravagant opulence. A cabinet minister receives 2000 litres of fuel in a month for example yet Malawi is one of the tiniest country geographically. Why can’t austerity begin with a reduction of this unreasonable privilege. Cut it to 500 litres afterall what do ministers do that brings value to our economy. This country can run nicely with civil servants without ministers. These ministers can add an unnecessary cost of running government.

  12. rough kwasambala says:

    Its about choices and priorities why are we abandoning hosipitals and yet someone is buying a car @ 30 million and the president ,the VIP and the wife of the president are moving in convoys of vehicles heavily surrounded by the police while the taxpayer is being robbed. Life iyi siili fair

  13. Disgruntled Malawian says:

    Lazarus and the richman.A poor man get crumbs under Goodall table.Look at how fat his neck is and he is telling us to keep up with austerity measures.Is this govt of Mapwevupwevu serious about the plight of Malawians?Muonenge vimwekumweku very soon.

  14. Commoner says:

    A Gondwe akuti we should brace ourselves for hard times while he has chigubu of orange squash and bottled water beside him.We the plebeians are drinking some cheap thobwa on everyday basis.Koma ndinabadwiranji dziko la anthu ankhaza ngati ili.Ambuye mutione kumwambako.

  15. fitsoni says:

    A tumbuka cannot run the economy. Please resogn

  16. newton chione says:

    shupit Goodal,munozgekenge kuchimbira sonosono apa

  17. No Laughing Matter says:

    Ya when all ministers send their kids to opulent overseas colleges and they themselves don’t accept to die in government hospital in malawi but some private clinic in SA. They should be ashamed because it means our own facilities aren’t good enough. It is your duty guys to turn around our fortunes.

  18. True Patriot says:

    Look, Goodall Gondwe is too old to manage finances. He should be home thinking of how he gets on to the next life. Please APM Fire this man

  19. kadamanja says:


  20. Peter27 says:

    Austerity to the poor while Bowler spends Millions of tax payers money on a car and the gvt approves it!
    Austerity while the MEC cashgates millions and asks for more while the gvt keeps mum about it all.
    Austerity while the gvt renews contracts of over 60 year old PSs we dont need.
    Austerity to the poor only huh?

  21. MaKopa says:

    What did these people do in Malawi to suffer under this government

  22. GPMG says:

    Things need not be as bleak as Goodall is painting them. There are two major things that need to be done: The executive should be in the forefront of applying austerity, and secondly the same executive should jump start the economy – principally by ensuring that there is increased power generation.

    The reason that things will continue getting worse is that we have an extremely intransigent Government which wants to live in opulence while the masses suffer. APM has challenged that he will continue hiring the private jet – he thinks that spending K300 million to avoid a 10 hour connection wait is nothing.

    All new taxes will just go towards feeding this greedy Executive…

  23. nkhakamila says:

    so it means each and every malawian is up to begging? the government wants us to be self reliant and we are not happy,we want to be beggers.a full grown up malawian is getting worried that donors are not assisting.this is the time malawians should think about getting out of this begging culture.it irritates me that malawi is graduating engineers,agriculture specialists,doctors,irrigation experts,ooooh but its food stability is unstable.no tangible irrigation schemes in the country..all the fresh water is being wasted…we dont even use our so called graduate engineers to help pump water from one of the biggest fresh water body in the world lake malawi.how can malawi develop when we can not support the irrigation schemes left by kamuzu.talk of the well known Limphasa farm…it died with Kamuzu.lets think positive always

  24. chimboro says:

    We better ask our donor what they want about Malawi.If they say no to DPP then better resign to save many sufferers than you crooks.

  25. The Only Democrat Left says:

    Mr Goodal Gondwe you failed when you were Minister under Bingu with the ZERO DEFICIET budget. And you are failing now. Look at yourself in the mirror, you are an old man soon to meet our creator God. Why don’t you show deference to God our creator by being honest with Dunderhead Mutharika. Tell Mutharika that unless he brings back to Malawi the billions that he and Bingu stole Malawi is doomed as donors will NEVER give aid and far back as 1964 Malawi has always relied on donor aid.
    It’s not that donors are not funding other countries it is the fact that Bingu and Peter stole billions which the donors are demanding Mutharika repays to Malawi. In fact all donor countries have increased their aid budgets to help countries like Malawi but will not give aid to Malawi for it to be stolen by Mutharika and his Ministers.

  26. Girl says:

    Dzino lili manja mwa satana look the way things are happening, zosasangalatsaso Moto Ngozi daily nde pano mukutiuza kuti tidzigona ndi Njala and yet inu mukudya ma butter haaaaaa pelekani ufumuwo kwa oyenela basitu

  27. chiwa kogoya says:

    Hey your failures will put us on fire so you better resign plz !!!

    Dpp is the party of failures !!!!!!

  28. George phiri says:

    Simple!! Speed up passport processing duration, encourage more Malawians to own a passport. Improve Road Traffic Processes, Reduce MP, Ministers, PS salaries. Government is not a profit making entity so no need for these people to get big salaries. Believe you me if Mr President,Vice president, Ministers and all Mps can make a sacrifice thngs will improve. There is huge expenditure at the top. After all these people claim that they are there to serve us. Dont even think of introducing fees at public hospitals,





  30. Wa Nzeru Wa Kummawa says:

    So the zero aid budget is failing miserably!
    Increasing the tax base is simply trying to milk the already thin cow.
    Good citizens are already paying huge taxes which can sustain the zero aid budget only if the president and his cabinet stopped abusing this money through global trotting and selfish allowances in form of fuel, airtime, dog and cats allowances, dog and cats vehicle fuel and guard allowance.

  31. sapitwa says:

    This is an honest feedback. Whether we can shout on top of our voices on roof tops demanding the government to fix the economy now is just trying to build a house with its foundation in the air.
    Donors are not coming any soon or have stopped permanently. We had bad harvest this year and the weather conditions are not promising either for the next harvest.

    For the situation to turn around in short term, we must agree and support the government to introduce a bitter pill to swallow hence need to cut expenditure.

    1. Introduction of public hospital fees for those that earn a living e.g vendors, and all those with informal businesses. Track them through banks and traffic Offices where they renew their drivers licenses etc.
    2. Ensure those tracked in 1 are paying tax as it is the right thing to do.
    3. Track illegal importers of cigarettes from neighboring countries as it skips tax a lot.
    4.Citizens who earn a living should pay for their children’s school fees.
    5. Cut state house budget by 30% and divert the funds where it is needed most.
    6. Allow reforms to take place and ensure ghost employees are fired. Ask those that can go on early retirement to go with packages.
    7. Cut MPs and Ministers packages. MPs mostly are paid for just doing nothing and many are running their businesses. I would suggest they get paid on every parliamentary sitting including allowances. If they belong to a committee, let them get paid when they a sitting.
    8.Reduce Diplomatic missions expenses and for those that can generate funds like that in South Africa, let the generated funds be accounted for.

  32. Honeycomb Chidyauzu says:

    This is just short of admitting that you have failed. Please just resign honourably. The DPP is a party of failures.

  33. Bikiloni Nachipanti says:

    Mbofyo mbofyo mbofyo

  34. Cecilia Mapila says:

    Aid from Donor countries comes from taxed incomes of those countries’ citizens. Those citizens work so hard to earn that money, just to be stolen in Malawi. Which stupid Donor country would want to put its hard earned tax in a country called Malawi where it is always stolen and ends up in private pockets of few stupid and greedy thieves masquerading as civil servants?

  35. edward says:

    Shame on you the minister stop the talk of what ever, you must walk the walk.

  36. Tadala says:

    The government has no money to jump-start the economy but has money to fulfill the DPP manifesto. Malawians should be ready to pay more taxes, pay for access to public hospitals and even to pay for their primary and secondary school children because the government has no money. However, Malawians will be able to receive subsidies on Malata, Cement and Fertilizer because it is a DPP manifesto. Next time Malawians should choose a government and not a party because we will have people who will be able to set priorities for everyone and not party fanatics.

  37. Mo says:

    Thanx Gondwa povomeleza muuzane

  38. moyenda says:

    alas! telling us tough times ahead when you have that orange squash by your side…????

  39. KK says:

    Bring back the 577 billion and collect more taxes and customs fees from your Indian friends.

  40. The Only Democrat Left says:

    It’s quite simple if Malawi is to progress Mutharika must return to Malawi the billions that he and Bingu stole from Malawi. Once Mutharika does that and corruption stops the donors will once again provide aid to Malawi, and investors will consider investing in Malawi. If Gondwe had been honest he would be telling Mutharika that without his returning the billions to Malawi, our donors will not provide aid and Malawians will have to live through very hard times. And Mutharika said during the elections that he had a economic plan. Well where is the economic plan Dunderhead Mutharika, is your plan that Malawians must suffer lack of development even medicines in hospitals whilst you charter aircrafts for you and your 100’s of supporters to fly to foreign countries. Gondwe knows that Malawi will be crippled by Dunderhead Mutharika.

  41. chatonda says:

    Thank you Goodall Gondwe for being honest with the situation now and in the near future. Its better to be frank and let people be prepared for the worst. Peter should stop cheating by making noise on MBC that Malawi has made Economic Break through. Which one here?

  42. Professor Linton Pamberiii says:

    A Gondwe munatopa kale kale. What are u doing there? Mxxiiiii

  43. tsetsefly says:

    Mr. Minister, Malawians are still waiting for the promise you made that your gvt will work hard and that they will clap hands for you. My hands are already wide open and stretched but tired of wait for that time to put them together.

    1. Caterpillar says:

      Hahahaha my hands too are ready for a big clap!

  44. citizen okwiya says:

    With due respect, the subsidies are for political gimmicks and we must STOP them now.
    Besides, who is facing the blunt of this economic situation? Not the executive arm of govt because of selfishness

  45. Telling the Truth says:

    What Malawians do not and cannot understand is that if the situation is that bad why is Peter Mutharika hiring expensive jets to globetrot? And Peter Mutharika should not exaggerate the coming of investors. Investors come only if they are going to make money. Look at Kayelekera. It was closed when investors knew that they are not going to make money. The majority of Malawians have little purchasing power to provide a viable sustainable market for goods and services. I have no doubt DPP has scanty understanding of these issues. That is why DPP brought Malawi to her knees by April 2012.

  46. chechipapwiche says:

    Donors are not withholding 30-40% funds for funding the government. The government has enough funds. Tell me one thing! For what does one minister use 1000 liters of fuel in a month? airtime? Clean up these unnecessary allowances in all arms of government and we will be up and running, very simple, not so?

  47. Mr Dowa says:

    Kikkkkkkkk zilikotu

  48. All this because of selfish leadership

  49. Cashgate1 says:

    Ummmh! Just a few months ago I remember to have been assured by the same minister of a come back for Malawi. Now this statement seems to be a big contradictory to what was said then. What is happening in Malawi. Are we at times really telling the truth?

  50. richard says:

    Is it a must that these donors should give us aid or they are at liberty to give or not. It seems day in day out we talk of donors withholding aid as if its our money.

  51. Malawi wa Lero says:

    You say one thing and do the other with your fake prof. Today the govt is cutting down expenditure, tomorrow the president takes the whole Goliati village on a shopping spree in New York using our taxes. You are just fooling yourselves. Idiots.

  52. Nesho says:

    Useless government

Comments are closed.