By Taonga Sabola & Rebecca Chimjeka:
New Finance Minister Simplex Chithyola Banda had a date with the country’s development partners Wednesday, when they discussed the country’s commitment towards Extended Credit Facility (ECF) qualifications and other economic activities.
The partners included United States Ambassador to Malawi David Young, European Union (EU) Ambassador to Malawi Rune Skinnebach, British High Commissioner to Malawi Fiona Ritchie, Japanese Ambassador to Malawi Yoichi Oya, as well as ambassadors from Belgium and Ireland.
Last month, Malawi reached a staff level agreement with the International Monetary Fund (IMF) on a new ECF programme and is expected to go to the IMF Board next month for the final approval.
At yesterday’s breakfast meeting, the officials also discussed Chithyola Banda’s blueprint as he embarks on navigating the local economy past micro and macro hurdles.
During the meeting, Chithyola Banda shed light on his strategy, which is premised on addressing challenges such as forex, fuel, food shortages as well as mechanisms for making fertiliser available.
Sources who attended the meeting told The Daily Times that all the development partners assured the finance minister of continued support to the country.
“The partners were particularly happy with Chithyola Banda’s clear roadmap toward economic transformation and diversification
“All the partners expressed satisfaction with the way the minister conducted himself in Marrakesh, Morocco, last week during the IMF and World Bank annual meetings,” the source said.
The source added that development partners urged Chithyola Banda to add the issue of lack of fiscal space to the list of factors crippling the local economy.
In an interview Wednesday, Chithyola Banda described the meeting as cordial.
The new Chancellor of the Exchequer expressed happiness that the development partners welcomed him in style by organising a breakfast meeting.
He said this indicates their commitment to Malawi’s cause.
In an interview Wednesday, Skinnebach said following the appointment of Chithyola Banda as Minister of Finance and Economic Affairs, the EU invited him to a meeting at the EU Ambassador’s residence.
He said they did so with a group of likeminded heads of missions, who have been assisting Malawi in its efforts towards achieving a Staff Level Agreement with the IMF, hopefully leading to a board decision granting Malawi an ECF on November 10 this year.
“The meeting reconfirmed the mutually valued relationship between the new minister and the development partners and both parties agreed on the usefulness of enhancing collaboration during these decisive weeks and months in order to address the challenges faced by Malawi in an optimal manner.
“The openness, strategic and realistic approach adopted by the minister and his team gave DPs [development partners] the impression that they are working towards the same goal on a basis of strong mutual understanding,” Skinnebach said.
On his part, Young said they would continue to engage the Finance Minister to push for progress toward an ECF.
“We are hopeful that Malawi will achieve that goal in the near future,” Young said.
Today, Chithyola Banda is scheduled to meet World Bank Country Manager Hugh Ruddell and IMF Resident Representative Nelnan Koumtingue.
He added that he plans to meet renowned economists Ronald Mangani, Betchani Tchereni, former finance ministers and Reserve Bank of Malawi governors and the political leadership to feed into his strategy.
“I am also engaging stakeholders such as the civil society, the private sector through MCCCI [Malawi Confederation of Chambers of Commerce and Industry], Mejn [Malawi Economic Justice Network], Ecama [Economics Association of Malawi] and Bankers Association of Malawi,” he said.
