Malawi to cut borrowing, aims to grow economy by 7 percent -finmin

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Bags of sorghum are distributed as aid at a school in Malawi © Getty 6.7m The number of people affected by drought in Malawi, which had taken out a $5m insurance policy with African Risk Capacity. The policy eventually paid out $8m, though Action Aid puts the damage at many times that. ARC has paid out $34m over the past three years to help combat drought —

LILONGWE (Reuters) – Malawi aims to cut government borrowing and stick to an International Monetary Fund programme in order to boost the economic growth rate to 7 percent in the medium term, the finance minister said on Friday.

Goodall Gondwe made the comments in his budget speech to parliament.

The impoverished southern African nation is recovering from drought-induced economic stagnation and remains heavily reliant on borrowing, with about a third of its $3.5 billion total debt coming from external lenders. [J8N1Q2019]

Reporting by Frank Phiri; Writing by Mfuneko Toyana; editing by John Stonestreet

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