Malawi on Tuesday signed three landmark agreements with the European Union (EU) and its member States, marking a significant step towards revitalising the energy sector, improving public finance management and enhancing agricultural commercialisation.
The agreements, signed at the inaugural Malawi-EU Investment Forum in Lilongwe, reflect a shared commitment to strengthening economic ties.
President Lazarus Chakwera officially opened the three-day forum, which has brought together government officials, industry leaders and members of the diplomatic corps.
The forum seeks to catalyse sustainable development by aligning EU support with Malawi’s strategic priorities under Malawi 2063 (MW2063), the country’s long-term development plan.
Minister of Finance and Economic Affairs Simplex Chithyola-Banda signed the three agreements, including the 50 million euro (about K95 billion) Strengthening Public Financial and Economic Management project, co-funded by the EU, which has contributed five million euro (about K9 billion) and Germany has put in 45 million euro (about K85 billion).
The initiative is expected to advance reforms in public financemanagement.
Chithyola-Banda also signed the Enhanced Energy Policy Performance Grant aimed at boosting the local energy sector, particularly in renewable and clean energy technologies.
The third agreement involved the second phase of the Agriculture Commercialisation Project-Multi Donor Trust Fund, which seeks to revitalise Malawi’s agriculture sector by promoting value addition and supporting export-oriented value chains.
Speaking at the forum, EU Ambassador Rune Skinnebach noted that the focus areas; namely, agriculture, energy and tourism, align closely with MW2063 and its Malawi First 10-Year Implementation Plan (MIP-1).
“The Malawi 2063 prioritises increased agricultural productivity, energy access, and tourism development as pillars of economic transformation. These agreements reflect a shared commitment to achieving these goals,” he said.
In an interview on the sidelines of the event, EU deputy director for international partnerships Myriam Ferran underscored the significance of regional energy connectivity.
“Our support will enable Malawi to connect with Mozambique and potentially create a situation where Malawi can export excess energy,” she said.
Ferran also urged the government to address macroeconomic imbalances, citing high public debt as a major obstacle to private sector growth.
She said: “One of the biggest impediments to private sector development is access to finance, which is linked to public debt.
“High public debt drives up interest rates, limiting the capacity of businesses to borrow and invest.”
Mwapata Institute research fellow Christone Nyondo emphasised the need for data-driven decision-making in implementing agriculture commercialisation.
“The value chains should align with research-backed export potential. For instance, crops like mangoes and bananas have demonstrated high export viability,” he said.
Government and diplomatic representatives expressed optimism at the forum that these agreements would enhance Malawi’s participation in the EU’s Global Gateway initiative.
