United Democratic Front (UDF) president Atupele Muluzi has said the freezing of US aid will have a massive negative effect on least developed countries such as Malawi, especially on service delivery and ability to manage foreign exchange.
Speaking on Saturday at Chiwoka School Ground in Traditional Authority Ndindi in Salima District, he called for mindset change so that Malawi can embrace socioeconomic growth and be self-reliant.
Said Atupele: “Malawi generates about $1 billion [about K1.7 trillion] annually when we require about $3.2 billion [K5.1 trillion]. With the freezing of US support there will be a huge gap in foreign exchange resources.
“This in turn will have a massive negative effect on the economy if we don’t practise financial prudence.”
He called on authorities to fight corruption and stabilise the economy before the situation gets out of hand.
The US Government was giving more than $350 million (about K612 billion) to Malawi annually, according to the US Department of State.
The amount is equivalent to more than 13 percent of the country’s 2024-25 National Budget.
Currently, more than half of healthcare spending comes from foreign donors, especially the US.
Since 2003, the US has pumped more than $2.1 billion (about K3.4 trillion) into fighting HIV and Aids, malaria and tuberculosis.
