By Benadetta Chiwanda Mia:
Malawi faces potential losses of up to $110 million (about K192 billion) in annual average development support following United States (US) President Donald Trump’s decision to temporarily suspend all foreign aid for 90 days.
Malawi has enjoyed development support of approximately $2 billion (about K3 trillion) from the US in the past 18 years, bringing the support to an average of $110 million annually.
In an interview, US Embassy Public Affairs Officer Grant Phillipo said American support to Malawi has been substantial, with $1.8 billion dedicated to HIV programmes since 2004, and $687 million in humanitarian assistance between 2000 and 2023.
In 2024 alone, the US made a $7 million contribution to food security programmes.
“Our partnership has extended beyond financial support to include conservation efforts, climate action initiatives and environmental protection. USaid projects have created 300,000 short-term jobs and facilitated the planting of 20 million trees,” Phillipo said.
Economics Association of Malawi (Ecama) President Bertha Chikadza said the timing of the aid freeze coincides with Malawi’s efforts to rebuild its economy amid rising inflation and foreign exchange shortages, potentially complicating the country’s recovery efforts.
“The suspension threatens critical sectors dependent on US funding. Beyond the immediate impact on planned projects, this creates uncertainty in our development planning,” she said.
The Ministry of Finance has maintained a cautious stance, with spokesperson Williams Banda acknowledging the significance of US support while declining to make a detailed comment on the suspension’s implications.
“The existing cordial relationship with the US remains valuable to us,” Banda said.
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