The government has launched a robust defence of its economic record, dismissing allegations by UTM president Dalitso Kabambe as “unsubstantiated” and accusing the opposition leader of engaging in political rhetoric rather than presenting facts.
In a statement issued by Government Spokesperson Shadreck Namalomba, the administration rejected claims made by Kabambe during a recent interview with Zodiak Broadcasting Station in which he alleged corruption, nepotism and mismanagement of agriculture, fuel supplies and foreign exchange.
Namalomba argued that Malawi’s current economic challenges did not begin under President Arthur Peter Mutharika’s administration, saying the government inherited a difficult economic environment marked by rising public debt, widening fiscal deficits, foreign currency shortages, fuel supply disruptions and food insecurity.
“Government disputes the suggestion that these economic difficulties began under the present administration.
“Government considers these unsubstantiated allegations to be mere political rhetoric rather than statements grounded in verifiable facts and evidence,” Namalomba said.
He said the administration had made economic recovery a priority and pointed to what he described as signs of improving economic fundamentals since Mutharika returned to power in September 2025.
According to Namalomba, the fiscal deficit has fallen from 12.5 per cent to 9 per cent of GDP, while annual inflation declined from 28.7 per cent in September 2025 to 20 per cent in August 2026.
“This means the gap between Government revenue and spending has narrowed, reflecting efforts to control expenditure and strengthen revenue collection,” he said.
Namalomba further argued that inflation was easing, even if prices had not returned to previous levels.
“This does not mean prices have returned to earlier levels; it means they are rising more slowly,” he said.
Defending the government’s handling of agriculture, Namalomba said the administration inherited the effects of drought, shortages of farm inputs and pressure on household food supplies.
“Government is prioritising fertiliser access, agricultural production, food availability and stronger markets for farmers. Improved food availability has helped ease food-price inflation,” he said.
On fuel shortages, Namalomba maintained that the challenge was linked to foreign exchange constraints rather than government inaction.
“Fuel supply challenges cannot be separated from the wider shortage of foreign currency and Malawi’s dependence on imported petroleum,” he said.
He also rejected suggestions that official foreign exchange reserves should be viewed as cash immediately available to businesses and commercial banks.
“Government is working to strengthen domestic production, exports and financial management as part of long-term efforts to improve foreign exchange availability,” he added.
But Kabambe remained defiant, insisting that he would continue “scrutinising” the administration.
The exchange marks the latest political clash over the state of the economy, with the government pointing to improving economic indicators while opposition leaders argue that many ordinary Malawians are yet to feel the benefits.
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