Analysts and development partners and economic think‑tanks have broadly welcomed President Peter Mutharika’s State of the Nation Address (Sona), describing it as a sober, realistic appraisal of Malawi’s economic challenges that offers cautious optimism if the government follows through with disciplined implementation.
In a 40‑minute address titled ‘The path to economic recovery: Delivering a people‑centred development,’ President Mutharika said his four‑month‑old administration has made early gains in lowering inflation and stabilising fuel supplies, while acknowledging that foreign‑exchange shortages remain a major constraint.
“My government is therefore implementing strong measures to support the forex generation. These include the ongoing review of foreign‑exchange regulations, increased gold purchases and its monetisation,” the President said.
He added that austerity measures, such as reduced fuel entitlements for ministers and restrictions on travel, are intended to conserve resources for improved service delivery.
Mutharika defended the K5 billion Constituency Development Fund (CDF) as a decentralisation tool to accelerate grassroots development. He said the government has developed CDF guidelines and will launch a national CDF digital dashboard to provide real‑time public access to project information.
“I want to make it very clear that these resources are for the benefit of local Malawians and are performance based. I will not tolerate any mismanagement. Those found mismanaging resources will face the long arm of the law,” he said.
United Kingdom High Commissioner Leigh Stubblefield welcomed the emphasis on performance and accountability but warned that CDF investments must generate productive outcomes given current fiscal constraints.
“Anything invested in something like CDF has opportunity costs, so it has to benefit the people it is designed to help,” she said.
Malawi Economic Justice Network (Mejn) executive director Bertha Phiri said the President’s focus on strengthening public systems, transparency and accountability resonates with citizens. “The emphasis on social protection, healthcare, education and infrastructure is crucial, and people are eager to see tangible progress,” she said.
Economics Association of Malawi president Bertha Bangara Chikadza described the growth projections, 3.8 percent in 2026 and 4.9 percent in 2027, as realistic if the 2026/27 budget is executed effectively. She noted that priorities such as mining, tourism, road infrastructure and agricultural reforms could spur recovery if implemented with discipline.
Bankers Association of Malawi president and CEO of Standard Bank Phillip Madinga said sustained reforms could stabilise the macroeconomy and revive private‑sector momentum. “Restoring macroeconomic stability and delivering national growth is possible if traction in implementing targeted reforms is maintained,” he said.
Japanese Ambassador Naito Yasushi praised the focus on mining and transport, calling mining a potential “game changer” and welcoming prioritisation of transport corridors such as the Nacala corridor.
Finance Minister Joseph Mwanamvekha is expected to present the 2026/27 budget to Parliament within two weeks of the Sona, ahead of the new fiscal year on 1 April 2026. Pre‑budget consultations urged a realistic fiscal plan that controls spending and protects key social programmes, warning that wishful projections could prolong economic weakness.
