Since the beginning of the year, the Government of Malawi has been rejecting bids for Treasury bills (T‑bills), a move fiscal and monetary authorities say is aimed at curbing excessive domestic borrowing and reinforcing efforts toward fiscal consolidation and debt sustainability.

Chifipa Mhango, Chief Economist at the Don Consultancy Group (DCG), explains that by turning down high‑yield T‑bill bids, the government is signalling its unwillingness to borrow at interest rates deemed unsustainably high. The approach is intended to stabilise public finances and limit the rising cost of domestic debt.

Innocent Semosa spoke to Chifipa Mhango, Chief Economist at the Don Consultancy Group (DCG).