The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) said in its first Quarter Economic Report that  it expects domestic borrowing fueled by unexpected expenditures on Coronavirus.

The report also attributes the forecast to the upcoming elections which are dated to happen on July 2. The report outlines that besides the two factors, Malawi’s public domestic debt stock has surpassed that of external debt, a development which is increasing the risk of public debt distress.

The International Monetary Fund (IMF) has committed to give Malawi $150 million (about K110 billion) as a direct response to help the country fight the coronavirus (Covid-19) crisis. On the other hand, the government set aside K15 billion to procure items that would help combat the spread of the pandemic in the country.