The European Union Ambassador feels for Malawians as life gets harder with the economy tumbling on all key indicators and he wonders whether solutions can be found as Malawi heads to the elections. But the government insists it is fixing the situation

The European Union (EU) Ambassador to Malawi, Rune Skinnebach, has expressed concerns over the worsening economic difficulties Malawians are facing.

Skinnebach’s remarks come a week before Minister of Finance presents a national budget, probably one of the most anticipated budget presentation in recent years as Malawians hope it could carry solutions to the raft of economic challenges they are grappling with.

Speaking to Malawi News in an exclusive interview, Skinnebach said Malawi is at a crucial point—just like the rest of the world – that requires tough decisions to stop the country’s economy from sliding further.

“Life is getting harder, and the country is facing serious challenges,” he said.

Malawians are grappling with impact of a wreckage of an economy that is characterised by runaway inflation, struggling businesses and chronic shortage of forex.

According to Skinnebach, the foreign exchange crisis is one of Malawi’s biggest economic problems today.

He added that climate-related disasters have added to the weight of the problem, making life even more difficult for many Malawians.

Against all these challenges and while key economic indicators show a worrying trend, getting help from the international community is becoming harder.

He called for strict financial discipline, better revenue collection and urgent debt restructuring to stabilise the economy.

“With elections approaching, the big question is how Malawi will handle these tough times.

“Many are waiting for the upcoming national budget to see what direction the government will take,” he said.

Economists have also shared Skinnebach’s concerns in separate interviews.

Marvin Banda said as global economic conditions become more difficult and with foreign governments increasingly looking inward, developing countries like Malawi that are dependent on aid are in for the toughest of the times.

“As nationalism grows worldwide, international financial support is shrinking. Skinnebach is absolutely right that we face really tough times,” Banda said.

According to him, Malawi’s economy is being artificially supported such that while some indicators may seem stable now, it is only a matter of time before the situation worsens for the people.

Another economist, Velli Nyirongo, also feared that Malawi could fall deeper into economic trouble.

“The government must make tough decisions, such as whether to devalue the kwacha or introduce policies that encourage local production and reduce reliance on imports,” Nyirongo said.

He said for ordinary Malawians, the forex cris