The National Debt Coalition (NDC), a grouping of 25 civil society organisations, has said Malawi’s debt crisis is no longer a technical fiscal issue, but a structural challenge that requires urgent redress.
Speaking during a press conference in Lilongwe on Thursday ActionAid Malawi policy coordinator Tusayiwe Sikwese, whose organisation is a member of the coalition, called for coordinated action across all stakeholders to ensure that debt does not undermine the country’s development trajectory.
She said the country’s public debt, currently at K24 trillion, which is 90.8 percent of the gross domestic product (GDP), is taking up 40 percent of total revenue, leaving social services and production sector underfunded.
Sikwese stressed the need for government to ensure that any reforms that might come with the potential International Monetary Fund (IMF) programme should provide social protection safeguards and protect the vulnerable people.
“Any reform programme should protect vulnerable households and preserve access to essential services. In line with Malawi’s obligations under international human rights law, health, education and agriculture needs to be safeguarded from excessive fiscal adjustment,” she said.
Sikwese said the coalition, which advocates for transparency and public access to debt information, said Malawi remains highly vulnerable to climate shocks, including cyclones and recurring floods, yet continues to service debt during crises, limiting its ability to respond effectively.
Public finance expert Dalitso Kubalasa said in an interview that while fiscal discipline should be intentional and backed by firm rules to prevent expenditure overruns and growing debt, Malawi also needs to adopt a more realistic exchange rate framework and stronger social protection measures to cushion vulnerable households during reforms.
“Government must always have an inclusive pre-negotiated consensus on a reform compact with domestic stakeholders,” he said.
Meanwhile, Malawi Economic Justice Network executive director Bertha Phiri has urged government to show progress in revenue collection, expenditure control and prevent the accumulation of new arrears while strengthening governance measures, including transparency in fuel levy collections, asset declarations and public procurement.
“Malawi Government ought to show a concrete picture of fiscal consolidation, not just plans anymore,” she said.
Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha earlier told The Nation that the government is seeking a “win-win” agreement with the International Monetary Fund that supports economic recovery while protecting vulnerable households.
“We will not accept any reforms that will harm the very people we want to protect,” he said.
In its April 2026 Africa Economic Update, the World Bank said Malawi’s debt restructuring launched in mid-2022 has stalled with no comprehensive agreement reached following the lapse of the IMF programme.
The 2025 Debt Sustainability Analysis by the World Bank classified Malawi as being in debt distress, a situation that makes government struggle to meet financial obligations, leading to high risk of default.
