Malawi President hails Afreximbank support for IMF achievement

Malawi President Lazarus Chakwera has expressed appreciation to the African Export-Import Bank (Afreximbank) for its instrumental support in aiding Malawi’s successful attainment of the Staff-Level Agreement with the International Monetary Fund (IMF).

Chakwera conveyed his gratitude on Saturday during a meeting with Afreximbank President and Board Chairman Prof. Benedict Oramah, held on the sidelines of the United Nations General Assembly in New York, USA.

The President acknowledged Afreximbank’s unwavering commitment to Malawi, which played a significant role in securing the Staff-Level Agreement with the international lending institution.

Chakwera said the Staff-Level Agreement reached on the Second Review of the Staff Monitored Programme with Executive Board involvement (PMB), alongside a new 48-month financing arrangement under the ECF reached this month, represents a significant milestone in Malawi’s economic journey.

He also emphasised the critical role played by Malawi’s consistent policy implementation and reform efforts over the past several months in achieving this milestone.

“Our concerted efforts to stabilise the economy and lay the groundwork for inclusive and sustainable growth have started yielding positive results, with macroeconomic fundamentals showing improvement,” said Chakwera.

He highlighted the importance of this progress in restoring and strengthening Malawi’s fragile external and fiscal positions, which, in turn, would create an environment conducive to accelerating private sector development—a sector in which Afreximbank holds a crucial role.

Chakwera also underlined the potential impact of the final ECF Agreement as a critical macroeconomic anchor that could catalyse much-needed donor funding.

However, the Malawi leader cautioned that this achievement remains subject to the approval of the IMF Management and Executive Board, with an anticipated decision expected around mid-November of this year.

Chakwera asked for Afreximbank’s continued commitment to supporting Malawi’s ongoing endeavors, especially concerning discussions surrounding a debt treatment that would contribute significantly to Malawi’s debt sustainability.

The bank has embraced Malawi’s vision for 2063, which aims to achieve food security, create wealth, and generate job opportunities through substantial financial support for the development of large-scale farms and industrial parks.

On his part, Oramah assured the President of the bank’s commitment to financing the development of Mega Farms and industrial parks. He also mentioned that discussions have progressed significantly, paving the way for the commencement of implementation.

“My team will soon be arriving in Malawi to engage in further discussions, especially regarding the signing of the framework agreement,” said Oramah.

Chakwera expressed his government’s commitment to resolving any impediments to ensure the smooth implementation of Mega farms and industrial parks, starting with Matindi in Blantyre and Area 55 in Lilongwe.

During the bank’s annual meetings in Accra, Ghana, a collaboration agreement was between Malawi and ARISE IIP for the design, development, and operation of two world-class industrial parks and Special Economic Zones (SEZs) in Lilongwe and Blantyre to assist in closing gaps in industrial infrastructure to support the country’s focus on export manufacturing to transform its economy and generate jobs.

The two projects are expected to attract investment exceeding US$900 million and generate around 200 000 direct and indirect jobs in the country.

Afreximbank supported the Government of Malawi to develop the projects from early stages up to bankability, including providing financing and technical assistance through its Project Preparation and Export Development departments.

The collaboration agreement addresses infrastructure gaps as the Government of Malawi seeks to accelerate structural transformation away from primary commodity exports to value addition.

The SEZs and Mega Farms initiatives are expected to generate investments exceeding US$1.5 billion in the short to medium term, with Afreximbank expected to provide advisory services to support effective implementation of the integrated development strategy, facilitating twinning and matching services to attract African direct investment, introducing and supporting African EPC companies.