Development partners have urged Malawi to act decisively on a package of policy reforms, warning that delays in restoring macro-economic stability will continue to undermine private investment, job-creation and economic recovery.
The call was made during a national policy dialogue held in Lilongwe, where the World Bank, African Development Bank (AfDB) and United Nations jointly presented policy notes designed to inform the government’s new Economic Recovery Plan.
are largely policy-induced
In their report titled ‘No Time to Waste: Policy Priorities for Malawi’s Recovery’, the multilateral institutions observed that Malawi has reached a critical inflection point marked by persistent fiscal imbalances, high debt levels, foreign exchange shortages and weak growth—conditions that have eroded confidence and constrained productive investment.
In her opening remarks, United Nations Resident Coordinator for Malawi Rebecca Adda-Dontoh said the country’s economic challenges are largely policy-induced and, therefore, solvable with the right choices.
“Every month of delayed reform raises the eventual cost of adjustment and deepens social hardship,” she cautioned, noting that macro-economic stability is essential for restoring private sector confidence, scaling up production and addressing Malawi’s structural deficits.
Presenting the note, World Bank country manager Firas Raad said the policy notes were developed to support the new administration as it charts a recovery path, stressing that “there is no time to waste” given the depth of the economic crisis.
He said macro-economic stabilisation must be the immediate priority, arguing that once stability is restored, private capital would return, investment would rise and economic activity would begin to recover.
“The policy notes are clustered around four strategic objectives: restoring macroeconomic stability, creating an enabling environment for a dynamic private sector, strengthening human capital and resilience, and accelerating investment in critical infrastructure for growth,” Raad said in an interview on the sidelines of the launch.
Agriculture emerged as a central concern in the discussions, with partners questioning Malawi’s long-standing inability to raise productivity despite repeated policy interventions.
The dialogue highlighted the need for a new production model focused on stronger extension services, innovation, research and sustainable land-use practices.
Comparisons with regional peers showed Malawi still lagging behind significantly on yields, reinforcing concerns that low productivity continues to weaken export performance, rural incomes and food security.
Closing the dialogue, AfDB acting country director Ephraim Banda said the discussions reflected a shared recognition of the severity of Malawi’s challenges, but also a cautious optimism that the trajectory can be reversed.
He said: “Stabilising the economy, protecting farmers and businesses, sustaining investment in education and health, and accelerating infrastructure development would require difficult but unavoidable decisions.”
