The International Monetary Fund (IMF) says protecting vulnerable Malawians while helping the country restore economic stability and reviving growth will be at the heart of any new Extended Credit Facility (ECF) programme currently under negotiation.
IMF spokesperson Julie Kozack told Reuters that Malawi continues to face significant economic challenges, including persistently high inflation, which has heavily affected household incomes and increased the cost of living.
She said any new IMF-supported programme would be designed to help the country restore economic stability while ensuring that critical government spending on vulnerable groups is protected.
“Malawi faces significant economic challenges, including elevated inflation and any new lending programme would aim to restore macroeconomic stability, support growth while protecting priority social spending to support vulnerable citizens,” said Kozack.
She said discussions on Malawi’s new ECF arrangement are progressing, with IMF African Department director Zeine Zeidane meeting Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha and Reserve Bank of Malawi Governor George Partridge last week during the African Caucus 2026 meeting in The Gambia.
According to Kozack, Zeidane encouraged the Malawian authorities to continue working closely with the IMF to accelerate negotiations on the new programme.
In an interview yesterday, Mwanamvekha confirmed holding talks with the IMF delegation in The Gambia, describing the discussions as productive.
He expressed optimism that the two sides are edging closer to reaching an agreement.
“The discussions were fruitful and our priority is on economic recovery and protecting the poor. So we remain optimistic that we will conclude negotiations on the new ECF programme soon,” said Mwanamvekha.
The latest developments come a month after an IMF Mission visited Malawi for negotiations but departed without sealing the agreement. At the time, the Fund said it remained ready to move swiftly once the government and the IMF reached consensus on the policy reforms required under the programme.
Malawi’s previous four-year IMF programme, approved in November 2023 and valued at about US$175 million (about K306 billion) expired in May 2025 after the country failed to complete the first programme review.
