Least Developed Countries (LDCs) such as Malawi are facing many obstacles, including soaring debt, export marginalisation, energy poverty and climate vulnerability, the United Nations has said.

United Nations Commission for Trade and Development (Unctad) director for Africa and LDCs, Paul Akiwumi In a statement, said this is blocking the countries’ sustainable development.

Gwengwe: We are reviewing debt profiles

“The vulnerabilities of LDCs have evolved since the UN created the category five decades ago, but they continue to face major obstacles that block their sustainable development,” he said.

Unctad figures show that about 1.1 billion people live in LDCs. The LDC group grew from an initial 25 countries in 1971 to a peak of 52 in 1991 and stands at 46 today.

Only six countries have managed to graduate from the category.

Treasury figures show that as at December 31 2021, the country’s total public debt stock stood at K5.8 trillion, or 56.8 percent of the rebased gross domestic product (GDP) as compared to a stock of K5.45 trillion, or 58.8 percent of GDP in June 2021.

In his 2022/23 Budget Statement, Minister of Finance and Economic Affairs Sosten Gwengwe said debt management will be at the centre of the 2022/23 Budget implementation, adding that his ministry is currently reviewing its domestic debt profiles with a view of restructuring debt towards longer maturity period, which will address the current debt sustainability concerns.

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