The Feminist Macro Economics Alliance-Malawi (FEAM) has asked international lender institutions to unconditionally cancel Malawi’s external debt.

FEAM comprises seven civil society organisations, including Action Aid Malawi, NGO Gender Co-ordination Network, Malawi Human Rights Resource Centre, and Open Society Initiative for Southern Africa.

It believes that a debt-free Malawi will channel its meagre resources towards helping its impoverished population and addressing adverse impact of the Covid-19 pandemic.

Malawi’s foreign debt is understood to be 31 percent of the MK 4.1 trillion public debt.

FEAM, during the Global Week of Action (GWOA) for debt cancellation for the least developed countries (LDCs) to tackle the Covid-19 crisis, called for the cancellation of Malawi’s external debt.

‘Many poor countries have been plunged into a new debt crisis as they attempt to respond to the threat of the virus whilst also managing debts that have catapulted’, it said in a statement.

‘Even before the coronavirus crisis hit, Malawi is one of the least developed countries that faced a debt crisis and the country was spending more debt payment to other  wealthy governments or foreign le der institutions that were on its health services and some cases, more than on health and another service combined.

‘This situation is pathetic especially considering the current public health crisis of [Covid-19] and there is doubt that this will force the government to take fresh loans to finance Covid-19 response and recovery, which will result in deeper debt problems soon.

‘Without debt cancellation, many developing countries are likely to spend many years enduring reduces capital availability and severely restricted spending on healthcare, provide a safety net to the most vulnerable people and finance the rebuilding of their economies’.

Source: Nyasa Times

Photo source: Nyasa Times