"US Aid Freeze: A Blow to Malawi's Economy"
The United States' decision to freeze aid to Malawi will have severe consequences
on the country's economy and service delivery. Atupele Muluzi, president of the United Democratic Front (UDF), emphasized that Malawi relies heavily on foreign aid, generating only $1 billion annually despite requiring $3.2 billion.¹
The US provided over $350 million in aid to Malawi each year, accounting for more than 13% of the country's 2024-25 National Budget. This aid played a crucial role in supporting healthcare, with over half of the country's healthcare spending coming from foreign donors, primarily the US.
Muluzi urged the government to adopt a mindset change, promoting socioeconomic growth and self-reliance. He also stressed the need to combat corruption and stabilize the economy to mitigate the effects of the aid freeze.
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