Malawian youths yesterday demanded greater accountability and transparency in public debt management to enable citizens know why debt was contracted and how it was used.
In his address at the close of a two-day National Youth Symposium on Public Debt Transparency and Accountability in Lilongwe yesterday, chairperson of the consortium that organised the symposium Chifundo Robert said the youth want to be actively involved in debt-related decision-making and are calling for decisions to be made transparently.
He said the youth have given Treasury 12 months to make public information on the country’s debt.
Said Robert: “Young people across Malawi are demanding to be at the centre of discussions where key decision-making processes.
“Apart from that, they are also calling on the government and its development partners to ensure that initiatives on public debt led by young people are adequately supported.”
Malawi’s total public debt stands at K23.9 trillion, an equivalent of 90.9 percent of gross domestic product (GDP). About 65 percent of the debt is domestic while the remaining 35 percent is external debt, placing the country in severe debt distress and constraining public spending on essential social service.
Ministry of Finance, Economic Planning and Decentralisation says 43 percent of the country’s domestic revenue is used to service domestic debt.
The ministry’s Principal Secretary (Administration) Patrick Liphava told the symposium yesterday that the figure has risen from 22 percent four years ago, describing the increase as a major challenge that the government is determined to address.
He said the government is strengthening debt management systems, improving public finance management and enhancing the monitoring of public investments to ensure that borrowed resources generate measurable development outcomes.
Said Liphava: “The current debt distress situation is characterised by high domestic borrowing coupled with elevated interest costs. This has contributed to the crowding out of private sector credit and subdued economic growth.”
He said addressing the imbalances is critical not only for debt sustainability but also for restoring a stable macroeconomic environment conducive to investment and long-term growth.
United Nations acting resident coordinator Penelope Campbell said it is important for young people who make up the majority of Malawi’s population to participate in discussions and decision- making on public debt because they will bear much of the burden of repaying it in the future.
She said young people should play a leading role in promoting the efficient use of the country’s limited resources adding that forums such as the symposium provide an opportunity for them to engage authorities and seek answers on key issues.
Held under the theme ‘Reimagining youth engagement, debt transparency and accountability’, the symposium brought together about 60 young people from across the country.
