Leader of Opposition in Parliament Simplex Chithyola Banda says Malawians are poorer and facing worsening economic hardships after President Peter Mutharika and Democratic Progressive Party (DPP) administration’s first year in office.
In a statement challenging the President’s own assessment that his administration has stabilised the economy and achieved almost half of its promises, the former minister of Finance said the cost of living, fuel shortages, foreign exchange constraints, unemployment and food insecurity continued to weigh heavily on households, arguing that the government had failed to deliver meaningful economic relief.
“Malawians are poorer today than they were a year ago, and the economic hardships they are facing are worsening,” he said.
Chithyola Banda’s assessment came as Mutharika marked one year since returning to power and described his administration’s performance as a success.
In an interview with Malawi Broadcasting Corporation (MBC), Mutharika said his government had delivered about 50 percent of what it set out to achieve in its first year and had laid a foundation for an economically independent Malawi.
The President pointed to his administration’s “4Fs” agenda covering food, fuel, forex and fertiliser, as evidence of progress.
He said maize prices had fallen from more than K100 000 to about K35 000 per 50-kilogramme bag and highlighted the rollout of the 2026/27 Farm Inputs Subsidy Programme (Fisp).
But Chithyola Banda, who ironically presided over an acute foreign exchange crisis and runaway inflation, said the government’s claims of progress did not reflect the economic realities facing many Malawians.
He cited rising cost of living, foreign exchange shortages, unemployment and food insecurity, as well as what he described as poor management of public resources.
Chithyola Banda also faulted the government over the K128.7 billion purchase of Amaryllis Hotel by the Public Service Pension Trust Fund, saying the transaction raised questions about the protection of pensioners’ savings.
He also raised concerns about a $403 605 payment involving the National Oil Company of Malawi (Nocma), alleging that money was transferred to an overseas account following a fake email and forged bank letter.
On agriculture, Chithyola accused government of failing to deliver promised farm inputs, claiming that only 46 364 metric tonnes of the 102 845 metric tonnes of fertiliser promised had been delivered.
He said the Malawi Congress Party (MCP) will seek to replace Fisp with an electronic voucher system, rebuild the Strategic Grain Reserve, strengthen fuel security and establish a K100 billion youth enterprise fund.
In a separate interview, UTM Party president Dalitso Kabambe also gave the government a negative assessment, citing the cost of living, corruption, debt, foreign exchange shortages and constitutional governance.
He said increases in fuel, fertiliser, transport fares, university fees, water and electricity tariffs showed that the economic burden on households had worsened.
Kabambe, a former Reserve Bank of Malawi governor, also questioned government’s debt management, saying the DPP inherited debt of about K24 trillion and was seeking to add about K5 trillion during its first year.
On governance, he alleged that First Vice-President Jane Ansah was sidelined in government activities.
Centre for Multiparty Democracy chief executive officer Bonface Chibwana also criticised the administration’s governance record, citing concerns over the independence and functioning of public institutions.
But Economic Association of Malawi president Bertha Bangara Chikadza gave a more measured assessment, saying the DPP government had delivered mixed results while operating in an economy burdened by high inflation, domestic debt, food insecurity and low growth.
She said economic activity was showing signs of improvement but remained constrained by structural problems, including unreliable energy, foreign exchange distortions, weak domestic supply chains and a difficult business environment.
“While the economy has been showing signs of an uptick, the pace of growth remains constrained by persistent structural bottlenecks,” said Chikadza who teaches economics at the University of Malawi.
She said firms were operating at low capacity, often at 75 percent or less, while facing rising production costs and limited access to long-term credit.
However, Chikadza also acknowledged improvements in the macroeconomic environment.
Inflation has been easing, with the latest National Statistical Office figures putting headline inflation at 20.0 percent in August 2026, down from 20.8 percent in July. Food inflation also eased to 13.4 percent in August.
