By Isaac Jali
Vice President Dr Michael Usi has asked the Commonwealth Secretariat to help member states lobby for debt restructuring, saying Malawi and most member states are still grappling with loan repayment while at the same time rebuilding infrastructure destroyed by the effects of climate change.
Dr Usi made the call in Sevilla, Spain during a meeting with Professor Ruth Kattumuri, who is Senior Director responsible for Economic Development and Trade at the Commonwealth Secretariat.
During the meeting, Dr Usi reiterated that debt burden and climate shocks continue to squeeze most Commonwealth member states including Malawi, which are subjected to what he described as unfair and tight credit conditions such as volatile interest rates.
Dr Usi cited Cyclone Freddy in 2023, which caused infrastructure and livelihoods damage to the tune of 500 million US dollars, saying Malawi is still recovering while at the same time servicing loans and delivering critical services like education and health. He said this highlights the need for the Commonwealth to drum up support for flexible repayment restructuring.
He further requested for a shift in access to concessional and climate financing, to be strictly based on the vulnerability of a country.
“It’s not enough to name a challenge, but it’s time for real action and we feel that time has come for economies like ours to be assisted,” said Dr Michael Usi.
For her part, Kattumuri affirmed the Commonwealth’s continued support to Malawi in various areas of development, including the proposed reforms.
Dr Usi has since wrapped up meetings at the 4th Financing for Development Conference.
