Goodall says Malawi still needs foreign aid

Malawi still needs foreign aid or bilateral assistance that finances the development budget of the Malawi financial plan annually, Minister of Finance, Economic Planning and Development Goodall Gondwe has said.

Foreign donors keep withholding direct budget support since October 2013 over concerns of Cashgate—the systematic plunder of public resources at Capital Hill.

Gondwe has since hinted that Malawi will still have to do without financial support from donors with another zero-aid national budget in the 2016/17 financial year.

He said government will craft the budget “using local taxes.”

Gondwe was speaking during the second pre-budget consultation meeting for the 2016/17 National Budget in Lilongwe on Tuesday.

Gondwe also asked Malawians to have a spirit of hard work if the country is to advance.

“If our resources are to be used prudently, controlling officers must also prioritise areas that can make a huge difference to the masses and not just for individuals,” he said.

During pre-budget consultations in Mzuzu Church and Society executive director Moses Mkandawire said was critical to regain donor confidence following the closing of aid taps in reaction to Cashgate which has landed the country in financial problems.

Mkandawire asked government to broaden its tax base rather than over-taxing few Malawians in formal employment and corporate.

In Lilongwe, Gondwe noted contributions from Malawi Economic Justice Network (Mejn) executive director Dalitso Kubalasa and Malawi Confederation of Chambers of Commerce and Industry (MCCCI) chief executive officer Chancellor Kaferapanjira on what should be included in the national budget to address challenges faced by the business community, farmers as well as the private sector.