DPP warns Malawians to prepare for unbearable conditions

The Democratic Progressive Party (DPP) has warned Malawians to prepare themselves for the unbearable conditions which will have severe and terribly dire consequences ahead following the signing of the Four- year Extended Credit Facility (ECF) Program in USA.

Showers of praises are going to President Dr. Lazarus McCarthy Chakwera and his MCP led government for clinching a deal valued at US$174 million over a four -year period which translates into Malawi receiving US$11 million at the end of each successful review every quarter.

In a statement dated 21st September, 2023 signed by its Spokesperson Shadric Namalomba, the DPP says the recently announced staff-level agreement between the Malawi Government and the International Monetary Fund (IMF) Extended Credit Facility Program has raised concerns among Malawians about the potential impact of the accompanying conditionalities.

The DPP says while the MCP led Tonse Alliance thinks that economic conditions will improve in the country with the signing of the ECF Program, the truth of the matter is that the conditions will have to worsen in the next two to three years before improvements can be seen if Government will stick to these tough prescriptions.

“The future is simply dark, bleak and gloomy, the average Malawian will immediately feel the effects of the actions, especially those who heavily rely on Government services and subsides,” reads the statement in part.

The DPP says the Malawian economy under the Tonse Administration is facing challenges like low growth, poverty, and fiscal inefficiency saying the conditionalities may involve reduced public spending, and structural reforms to boost economic competitiveness and profess doom for Malawi.

It says following tough policy measures, Malawians should brace themselves for major devaluations in the horizons making all imported items such as fertilizers, petroleum products and other raw materials expensive and this in turn, will make all other goods and services in the economy soar.

The DPP says Government projects countrywide are likely to stall following tough policy measures claiming that Government will be unable to pay contractors meaning that construction of health Centres, classroom blocks and other structures, will stall.

The Party says following tough policy measures, the already impoverished population could face higher prices and higher living expenses as a result of tariff changes and subsidy reductions.