Malawi’s widening inequality gap has reignited calls for structural reform with Economics Association of Malawi (Ecama) president Bertha Bangara-Chikadza noting that the country’s rising debt burden is worsening the imbalance.
Speaking in Lilongwe yesterday during the launch of the Commitment to Reducing Inequality (CRI) Index Malawi Inequality Profile, she noted that the wealthiest one percent earns as much income as the bottom 50 percent of Malawians and that the top 10 percent control 61 percent of the nation’s wealth.
The imbalance, Bangara-Chikadza argued, is worsened by Malawi’s rising debt burden.
Debt servicing, currently estimated at K2.1 trillion, or nearly half of all domestic revenue, far exceeds the country’s combined spending on health, education and social protection.
“We spend 55 times more on servicing debt than protecting the vulnerable. That is not inequality, it is oppression,” said Bangara-Chikadza, citing the 2025 CRI Malawi Country Profile which Oxfam produced in collaboration with the Norwegian Church Aid and DanChurchAid (NCA-DCA), Save the Children and the Malawi Economic Justice Network.
She has since issued a scathing critique of Malawi’s economic priorities, arguing that inequality is not an accident of fate but a direct result of policy choices.
“Inequality is not destiny, it is a policy choice,” said Bangara-Chikadza.
Despite the presence of a relatively progressive tax framework—ranked 13th globally and second in southern Africa—Malawi only collects 22 percent of its potential tax revenue.
With a tax-to-GDP ratio of 13 percent in 2022, well below both sub-Saharan averages and national targets, enforcement remains a major gap.
In response, Bangara-Chikadza outlined a five-point reform agenda aimed at creating a more equitable fiscal system. Central to her proposal is the introduction of a moderate wealth tax.
According to CRI estimates, a 0.7 percent levy on accumulated wealth could generate approximately $70 million (about K779 billion) annually—enough to provide essential healthcare for nearly 890 000 people.
Bangara-Chikadza also proposed eliminating regressive tax exemptions, addressing illicit financial flows, enforcing labour rights, raising the minimum wage and shifting spending away from debt servicing and towards social programmes.
Reinforcing her message, Centre for Social Concern economic governance officer Agnes Nyirongo argued for more specific forms of wealth taxation.
“[The government should] consider a solidarity wealth levy on the richest one to five percent of individuals. This can be framed as a national development contribution, particularly during times of crisis or recovery,” she said.
Panellists at the launch echoed similar concerns.
Sipho Billiat from the National Planning Commission acknowledged that while the five-point plan is timely, its success depends on proper sequencing and strong political will.
Secretary to the Treasury Betchani Tchereni has previously stated that the government intends to redirect borrowing towards productive sectors.
Speaking after the expiry of Malawi’s programme with the International Monetary Fund’s Extended Credit Facility, he said the administration would adopt an expansionary fiscal stance focused on industrialisation, commercial agriculture, and mining.
