The Centre for Democracy and Economic Development Initiatives (CDEDI), a prominent watchdog in Malawi, has criticized a Supreme Court of Appeal ruling that mandates the government to pay significant sums to the defunct Finance Bank of Malawi. According to CDEDI, this decision poses a serious threat to the welfare of ordinary Malawians, as it may exacerbate the already dire economic conditions in the country. They argue that the ruling could have a ripple effect on the daily lives of citizens, making it crucial for them to comprehend its implications.

CDEDI highlighted the concerning financial situation in Malawi, where the national budget stands at approximately MK8 trillion, yet the Malawi Revenue Authority manages to collect only about MK4 trillion in actual taxes. This disparity indicates that the government has relied heavily on borrowing, leading to a staggering increase in public debt, which has ballooned from MK4 trillion in 2020 to around MK32 trillion today. CDEDI emphasizes that introducing such a substantial payout to Finance Bank into the mix would significantly strain an already fragile economy.

The organization is urging both policymakers and the public to recognize the potential consequences of the ruling, stressing that it could deepen the economic crisis faced by Malawi. With the national budget heavily dependent on borrowing and existing debts skyrocketing, the additional financial burden from the court's decision could lead to even more severe economic instability, affecting various aspects of life for Malawians.