Chakwera says foreign financial institutions hurting Africa

President Lazarus Chakwera has given a strong indictment to foreign financial institutions  – such as Bretton Woods  institutions International Monetary Fund (IMF)  and World Bank – that their programmes  have had any significant progress to alleviate poverty, in African countries at least, and in Sub-Saharan Africa more particularly: home to the largest portion on the world’s bottom million in extreme poverty.

President Dr Lazarus Chakwera arrives from Tanzania where he attends the State funeral for the late President Dr John Pombe Magufuli-pic by Lisa Kadango
State President Dr Lazarus Chakwera being welcomed at KIA by the Vice President Saulos Chilima from Tanzania where he attends the state funeral for late Dr John Pombe Magufuli-pic by Lisa Kadango

Chakwera gave a subtal attack to the foreign financial institutions on Monday when he joined other African leaders in celebrating the life and legacy of former Tanzania President John Pombwe Magufuli who died of heart complications last Wednesday.

The Malawi leader said: “When they said laziness and sloth in public service cannot be cured, they did not see Magufuli coming. When they said the cartels of corruption strangling Africa’s governments cannot be defeated, they did not see Magufuli coming.

“When they said African States cannot become middle-income economies within a single presidential term [of five years], they did not see Magufuli coming.”

Chakwera applauded the late Tanzanian president for pursuing a development agenda which was not based on what he called “failed prescriptions of foreign financial institutions that have left Africa more impoverished and in debt”.

The Malawi leader did not mention in names any of the foreign financial institutions.

However, the conditions the IMF imposes on countries it lends money to have sometimes been described as “harsh”.

In the past, these have included lower government borrowing, cutting corporate taxes and opening up their economies to foreign investment.

Besides Chakwera, the other leaders present included Cyril Ramaphosa (South Africa), Uhuru Kenyatta (Kenya), Edgar Lungu (Zambia), Filipe Nyusi (Mozambique), Emmerson Mnangagwa (Zimbabwe), Mokgweetsi Masisi (Botswana), Felix Tshisekedi (Democratic Republic of Congo) and Azali Assoumani (Comoros).

Each of the leaders present was accorded an opportunity to deliver a eulogy to Magufuli.

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Peter Pen
Peter Pen
1 month ago

Tanzania has Not Developed on it’s own it IMF and World Bank and other Foreign Financial Institution Funding to Tanzania
Chakwera Needs to do his Home work before even giving Speech and Make fool of Him self his Speecg is Completely Rubbish if he can view the Web Sites of IMF and World Bank and Foreign Financial Institutions he will see how much External Loans and Funding has been obtained by Tanzania

Bauleni
Bauleni
1 month ago

The problem is you made a lot of stupid promises you can’t keep expecting the white man to just borrow you the money without due diligence

Namagetsi
Namagetsi
1 month ago

Chakwela clean your own house first. Remember one finger is pointing three figures are pointing at you. What have you learned from Tanzania. We will be like zimbabwe soon tikuyang’ana muvi ukulowa m’manso.

Erik P
Erik P
1 month ago

Chakwera is right in that borrowing from IMF is terrible, but not for the reasons said. African countries are viewed as high risk and many financial institutions won’t even lend, and those that do charge high interest because they see problems of repayments. Yep, Malawi should stop being dependent in this way, and that is through improving the economy, gaining global confidence in Malawi and thus lowering borrowing rates. African countries cannot expect special treatment in global economic markets. Not just because financiers aren’t stupid, but because when special deals or charity is given, others realise it’s because of a… Read more »

Dausee
Dausee
1 month ago

Kwantele kwantele. The most foolish president Malawi has ever had.

Mandala
Mandala
1 month ago

I agree m’busa ndi wabodza. For after 9 months of failure and high corruption and a failing economy, m’busa is now complaining about Breton Woods and international lending institutions, but these bodies were all there when m’busa wa wadza was making all the promises before the election, promises m’busa cannot meet. So now he wants us to hate international lending institutions, no m’busa you made the promises so keep them. Where are the million jobs, where is the pension for the poor. where is the fertilizer and nuch more all we see is Talk Talk and you and your wife… Read more »

Last edited 1 month ago by Mandala
Mogasa
Mogasa
1 month ago

Mr President, I am hardcore DPP supporter koma mukayamba kulimbana ndi azunguwa zitivuta tonse. Tread carefully on how you speak or act. They are not completely bad as you would want us to believe. Yes they might be in business just like many of us here and what is wrong with doing business with those who need your services. Come back home and find effective and sober ways of dealing with our myriad challenges. We dont want them to kill you. Your success shall eventually be our success regardless of party affiliation. Remain blessed Laza

Munthu
1 month ago

Talk is cheap. Do the needful and follow Magufuli’s example.
Why are we always talking about the high level of corruption and yet little is done to stop it? Many Malawians have become so used to it, they think it is the accepted way of doing things. Shame on us!

Chewaball
Chewaball
1 month ago

Ndiposo, if these Bretton woods institutions were to demand their loans, Malawi economy will be ruined and I don’t think he can remain president.

Chewaball
Chewaball
1 month ago

He’s just looking for an excuse again. What is stopping him from thinking outside the box like magufuli? Apm was slowly taking Malawi in right direction without complaining about Bretton woods institutions. Chakwera must realise Bretton Woods institutions are here to stay and in any case they don’t force their loans on any country. These president and finance ministers quickly ask for aid to solve their short term blunders thereby become more indebted to imf/World Bank. Imf/World Bank are companies owned by the rich Western countries trading in loans at interest, malawi/Africa like katapila that’s why they are indebted and… Read more »

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