Malawi has lost aid from Britain and Germany after expressing concerns about poor governance in the country. This decision, according to the Nyasa Times, was taken because of President Bingu wa Mutharika's dictatorial rule.

According to the Times, President Mutharika accused some donors of working with civil society to undermine his administration.

Mutharika deported British High Commissioner Fergus Cochrane-Dyet in February 2011 for calling him "autocratic" and "combative".

Mutharika is also on record as saying that some donors are working with civil society to undermine his administration.

Britain froze new aid until a review of its ties with the country after mutual expulsion of diplomats, the Malawi Voice reports.

A statement released by the Department of International Development (DFID), a British aid arm, said the UK is reviewing its relations with Malawi, including DFID's aid programme. New aid commitments are on hold until the review is completed.

Nyasa Times also reported that the German embassy will close its mission in Malawi in the next 12 months.

The donors are concerned with violations of freedom of the press and expression, lack of accountability and human rights abuse, according to reports.

The country is heavily reliant on donors, with budgetary support accounting for more than 40 percent of the national budget, the Malawi Voice has reported.