PRESS STATEMENT ON REFORMS AND A CALL PUBLIC SUPPORT AND PARTICIPATION

Government wishes to assure the nation and international cooperating partners that the reforms it has embarked on will continue in earnest and are in good faith.

These reforms are being undertaken on the back of acknowledging that our country needs to introduce efficiency and effectiveness in managing its affairs, including attending to the need of eliminating wastage and using resources prudently,

Government is aware that the process of changing course of things is never easy, it brings about suspicion and anxieties, in many cases giving rise to perceptions and misconceptions that if not managed properly and effectively can be detrimental to progress.

It is for this reason that Government is providing this assurance that the intention for everything that is being done is to sharpen the cutting age of service delivery and management of public affairs to facilitate an economic revolution where the private sector has access to the tools and amenities for regaining its position as an engine of economic growth while every member of the citizenry is fired up to participate in the task of nation building out of the realization that Malawi can only be developed by us.

Part of the ongoing efforts will be to introduce stringent measures, some of which have already been noticed, to eliminate mismanagement, which leads into government borrowing, of greatest concern being from the domestic market.

The danger of this kind of borrowing is that not only does it absorb resources that would have otherwise been used to provide public services given that interest for debt servicing is high and unsustainable, but it also denies the private sector the opportunity for accessing the kind of capital they need to drive industry, stimulate economic growth and create jobs.

For instance, the current administration has inherited a domestic debt stock standing at around K340 billion, while the foreign debt burden is estimated at US$1.2 billion.
In terms of servicing this debt, government will be required to be paying at least K92 billion per annum to service the domestic debt (of K340 billion),

while the it will be paying around K10 million dollars per annum to service the foreign debt stock (of US$1.2 billion). This is clearly Unsustainable and illustrates the urgent need to introduce the radical reforms that will assist in the task of eliminating wastage and at the same time realigning national priorities to ensure that borrowing should only be for purposes of productive activities.

It is out of the realization that these reforms must be participatory and are conducted systematically and in a transparent manner that His Excellency the President Professor Peter Mutharika has set up a Civil Service and Public Sector Reform Commission to manage this important process by conducting wide consultations with all Malawians with the view that the reforms are not only people driven but are also people centred.

Government wishes therefore to appeal to all Malawians to assist this commission by providing their views and ideas so that together we can build our country and make it a better place for all.

MINISTRY OF INFORMATION, TOURISM AND CIVIC EDUCATION