By Chimwemwe Mangazi & Benadetta Chiwanda Mia
The Treasury is soliciting stakeholder views to form part of the National Economic Recovery Plan (NERP).
This is coming at a time the country is facing shocks, including harsh weather conditions and effects of geopolitical tensions— coupled with structural challenges—all of which have led to stagnation, evidenced by subdued growth in real gross domestic product (GDP) terms and volatility in almost all key macroeconomic indicators.
The government is, therefore, drawing a plan to see Malawi through the woods.
On Wednesday this week, Finance, Economic Planning and Decentralisation Minister Joseph Mwanamvekha is scheduled to engage the public, business leaders, academics and civil society for their views to form part of the recovery plan, which is covering a five-year period to 2030.
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The plan targets restoring macroeconomic stability, accelerating economic growth, export-led industrialisation, addressing fiscal and debt challenges and enhancing food security, among other things.
Commentators say Malawi’s fragile economy could derail the plan if implementation challenges are not properly addressed.
Economist Marvin Banda said Malawi risked repeating past policy failures if the authorities focused more on targets than execution.
He said the country was facing challenges such as high inflation, foreign exchange shortages, high public debt and weak domestic production, signs that the economy was still fighting a stabilisation battle rather than a growth battle.
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“Inflation in Malawi is not simply a monetary problem; it is driven by food shortages, foreign exchange scarcity, fuel costs and weak domestic production. Unless those structural issues are fixed, inflation will remain stubbornly high regardless of policy announcements,” Banda said.
Meanwhile, Malawi Economic Justice Network Executive Director Bertha Phiri has said while the government has initiated some corrective measures under the recovery plan, Malawi’s macroeconomic indicators remain fragile.
“The consultation needed to start before setting the target. Nevertheless, just looking at the preliminary evidence, it shows that the government has initiated some collective measures. We have heard talks about fiscal consolidation, debt restructuring and monetary tightening,” she said.
In a separate interview, Consumers Association of Malawi Executive Director John Kapito said Malawians were struggling to cope with the rising cost of living, such that the plan had to highlight possible remedies.
In its latest economic update, economic think-tank Economics Association of Malawi said monetary policy alone would not be sufficient to reduce inflation to the government’s target of 15 percent by March 2027.
