The Democratic Progressive Party (DPP) has accused Malawi Congress Party-led administration following its announcement of a “mutual suspension” of the Extended Credit Facility (ECF) with the International Monetary Fund (IMF), branding the decision as “reckless” and “a betrayal of economic responsibility.”
In a statement issued by the DPP’s Director of Economic Affairs, Ralph Pacharo Jooma, the party has accused the government of masking failure behind the rhetoric of sovereignty and domestic priorities.
“This is not a strategic realignment. It is a confession of failure,” Jooma said.
“Walking away from the IMF during economic crisis is not leadership—it is economic sabotage,” he added.
On May 15, President Lazarus Chakwera’s government announced that it had agreed with the IMF to suspend the ECF, which had been seen as a cornerstone of Malawi’s economic recovery efforts. Government officials described the move as a “pause” that would allow more flexibility in addressing domestic challenges, particularly poverty reduction.
But Jooma dismissed that justification as a smokescreen.
“The ECF didn’t fail Malawi. The MCP government failed the ECF—and in doing so, failed the people,” Jooma stated.
“This administration has presided over the collapse of our currency, the explosion of public debt, and the worst inflation in a generation. This is not pro-poor policy; it is anti-people incompetence.”
According to the DPP, public debt has soared to MWK 18.1 trillion, inflation is above 30%, and the kwacha has lost more than 80% of its value since 2020.
Jooma warned that the suspension of the IMF program could threaten future aid and investor confidence, pushing the country further into crisis.
“This reckless move tells the world that Malawi is no longer a credible economic partner. It risks not just IMF support, but also financing from the World Bank, African Development Bank, and our bilateral partners,” he warned.
Jooma also accused the MCP-led government of lacking transparency and fiscal discipline, saying that missed IMF targets were a result of internal failure, not external conditions.
“The truth is that this government never had the capacity or will to implement reform. They have wasted public money, ignored benchmarks, and failed to deliver,” he said.
In a rallying call, Jooma reaffirmed the DPP’s commitment to economic reform and international re-engagement if voted back into power during the September 2025 General Elections.
“We will bring back macroeconomic stability, re-engage our development partners, and restore the dignity of this nation,” Jooma declared. “Reform is not a foreign imposition—it is a patriotic duty.”
The government has not yet responded to the DPP’s accusations. However, sources within Capitol Hill suggest that the Ministry of Finance will hold a press briefing later this week to clarify the implications of the IMF suspension.
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