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Home » Malawi’s economic crisis will deepen as the US cuts $177 million with critical aid, a new report reveals
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Malawi’s economic crisis will deepen as the US cuts $177 million with critical aid, a new report reveals

TrendytimesBy Trendytimes16/04/2025No Comments3 Mins Read
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A shocking new report by the International Food Policy Institute (IFPRI) reveals that the sudden halt of US foreign aid has led the Malawi spiral to be caught up in the worst humanitarian crisis in decades.

According to IFPRI’s policy note 53, catastrophic reductions – totaling $177 million, or 59% of American aid per year, tore the vulnerable safety nets that support Malawi.

The findings of the report reveal a staggering human victim. 4,451 healthcare workers were fired, 18 HIV treatment centres were closed, and life-saving maternal health programs were almost eliminated overnight.

“These aren’t just the numbers in the report. They are mothers who can’t get prenatal care, children who are hungry with HIV patients leaving the clinic,” said Dr. Grace Mwale, a doctor at Lilongwe who first saw the impact recorded in the IFPRI study. “We see years of progress being unraveled right in front of us.”

The economic shock waves mentioned in the report are equally devastating. This aid halt reduced Malawi’s foreign currency reserves by an amount equivalent to 6.3% of annual imports. Local Kwacha currency has plummeted in parallel markets, causing prices of fuel, medicine and food to skyrocket.

IFPRI Economist Project Malawi’s GDP has fallen by 127 million this year alone, with cumulative losses reaching 127 million this year alone, with cumulative losses reaching 1.3 billion by 2030.

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The health sector, which received 57% of US support, faces particularly brutal cuts, according to the report. The HIV/AIDS program lost 36-39% of funding, but mothers and children’s health initiatives were effectively wiped out with a 96-100% reduction. At Queen Elizabeth Central Hospital in Blantyre, the once busy AIDS ward became creepy quiet with patients turning their backs.

Agricultural programs, essential to food security, have been cut to 59%, threatening next season’s harvest in countries where most families rely on subsistence farming. The report warns that a double blow to the health system and an impending food shortage could create a humanitarian catastrophe.

“This aid wasn’t a charity – it kept people alive,” said Jan Duchoslav, co-author of IFPRI. “The data shows that in the coming months, unnecessary deaths can be seen from preventable causes without urgent intervention.”

As government officials rush to find alternative sources of funding, ordinary Malawians face impossible choices. In the village of Ntcheu, 32-year-old Esther Phiri has to choose to buy antiretroviral medications for her HIV-positive son or eat food for other children.

“I pray that someone will help us every night,” Fili said, clutching her son’s medical record. “But the numbers in this report show that help is disappearing when we need it most.”



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