President Lazarus Chakwera of Malawi has been a vocal advocate for debt restructuring and cancellation for Least Developed Countries (LDCs). His efforts gained momentum during his leadership of the LDCs in 2023.
In a positive turn of events, India has expressed its willingness to consider the debt restructuring needs of Malawi. Indian President Droupadi Murmu is set to visit Malawi to discuss this matter along with potential trade arrangements with President Chakwera.
Malawi is grappling with severe economic challenges, including a scarcity of foreign exchange, as much of its domestic income is directed toward servicing growing debt obligations. Economists believe that restructuring these debts could alleviate significant stress on the economy and improve import capacities.
Last September, during the United Nations General Assembly, President Chakwera implored financial institutions and creditor countries to “cancel the debt.” He highlighted the distress faced by nations like Malawi, which struggle under the weight of relentless debt repayments that hinder their economic growth.
Chakwera argued that achieving the United Nations’ Sustainable Development Goals, particularly the goal of eradicating poverty by 2030, would remain a distant dream if the debts of developing nations are not addressed. “Our call on behalf of all LDCs remains the same: Cancel the debt,” he stated.
According to announcement by India’s Government, President Murmu’s upcoming trip will include visits to Malawi, Mauritania, and Algeria, focusing on fostering trade discussions.
