Unclaimed billions could reshape Malawi’s future

Billions of kwacha in dormant accounts could become a new source of development financing if properly managed, with calls growing for the country to turn idle resources into investments that benefit citizens.

Malawi Congress Party (MCP) spokesperson on Finance Peter Dimba says Malawi should establish a sovereign wealth fund to manage unclaimed funds and channel them into long-term development projects.

Dimba made the proposal in Parliament after lawmakers passed the Pensions Amendment Bill and the Insurance Amendment Bill, which seek to harmonise the management of unclaimed funds with the Public Finance Management Act.

He said while the current arrangement of transferring unclaimed funds to the government’s Account Number One may be necessary due to economic challenges, Malawi should consider a different approach when conditions improve.

Dimba argued that such resources should not only support government spending but should be invested in projects that leave a lasting impact on citizens.

“We could use those resources for construction of roads, we could construct a big hospital using those funds, and be able to label that this infrastructure was actually built by resources that were taken from unused funds,” said Dimba.

He said a sovereign wealth fund would provide a structured way of preserving and growing public resources while ensuring future generations benefit from money that has remained unused in financial institutions.

Finance Minister Joseph Mwanamvekha backed the idea, saying government is already considering the establishment of a sovereign wealth fund but cannot implement it now due to economic pressures, including high debt levels and increased demands on public resources.

Mwanamvekha said the fund could become possible once Malawi’s economy stabilises and the country starts benefiting from mineral resources such as gold and rare earths, allowing the nation to save and invest for future development.