Economists and other stakeholders have advised the Malawi Government to enhance revenue collection, strengthen institutional frameworks and bolster agricultural resilience to drive economic growth from next year and beyond.
They made the recommendations on Thursday in Lilongwe during the dissemination of the Mid-Year Budget Review Report during a meeting co-facilitated by Oxfam in Malawi and the Economics Association of Malawi (Ecama).
gain insights| Eric Mtemang’ombe
The calls for action align with projections from the Reserve Bank of Malawi that the economy will rebound to four percent in 2025 alongside a decline in inflation to 24.2 percent in 2025 and 17 percent in 2026. Inflation rate is currently at 27 percent as of November this year, according to the National Statistical Office data.
An economist commissioned by Ecama and Oxfam in Malawi, Wytone Jombo, warned that fiscal pressures from the upcoming election and persistent foreign exchange challenges could undermine these optimistic projections.
He said: “Persistent foreign exchange shortages threaten to impede growth across multiple sectors.
“These shortages significantly affect businesses reliant on imported goods and services, particularly in the manufacturing and retail industries.”
Jombo further highlighted delays in Malawi’s judicial system and weaknesses in its regulatory framework as major barriers to investment and economic growth.
In an interview, Budget and Finance Committee of Parliament chairperson Gladys Ganda stressed the importance of addressing these inefficiencies for the betterment of the economy.
She said strengthening revenue collection and ensuring that funds are allocated to productive sectors are critical steps to restore investor confidence and promoting sustainable economic growth.
Ganda, who attended the meeting, called for targeted funding to mega farms and irrigation agriculture.
She said: “Our current debt situation arises from insufficient revenue to sustain the budget.
“We must ensure that resources are directed towards initiatives that foster growth and resilience.”
Oxfam in Malawi governance manager Mac Pherson Mdalla emphasised the role of collaborative engagements in shaping responsive national budgets.
“Our interactions with stakeholders and civil society help members of Parliament to gain insights into what needs to be done to better serve their constituencies,” he said.
As Malawi faces pressing fiscal and foreign exchange challenges, the consensus from stakeholders underscores the need for bold reforms and targeted investments to unlock the country’s economic potential.
