The World Bank has casted doubt over Malawi’s economy, decrying the current corruption and fiscal indiscipline, calling on the government to act on the problematic economic environment. This follows reports of the International Monetary warned Malawi on overborrowing.

The bank has also punches the holes in the 2018/19 budget, saying that it will not meet its target due to effects of Cyclone Idai. Through a report known as Malawi Economic Monitor (MEM) the doubts were made known, as World Bank Malawi Country Manager Greg Toulmin cited weak governance and corruption as areas of concern of World Bank.

Toulmin urged the government to have fiscal discipline, to reduce high levels of borrowing to decrease Malawi’s vulnerability to shocks by increasing investment. He emphasized that Malawi has experienced a sharp increase in debt since benefiting under the Heavily Indebted Poor Country (HIPC) and the Multilateral Debt Relief Initiatives (MDRI) in 2016. Currently, Malawi’s gross domestic product (GDP) has doubled to almost 60% in the 2011-2018 time frame, attributed to overspending of the government.

Experts have concurred with the Bretton Woods institution, urging government to undertake fiscal discipline. Meanwhile the government is expected to deliver the financial reforms it promised before re-election on May 21 Tripartite elections this year.