The International Monetary Fund (IMF) has said it has no timeline within which Malawi would return to a new financing arrangement under the Extended Credit Facility (ECF) programme.
The fund said discussions on a possible fresh programme are expected to resume after the September general elections, but local authorities hold the key.
Speaking during a virtual media briefing, IMF Mission Chief to Malawi Justin Tyson said the timeline would be based on local authorities’ approaching the fund and alignment on agreed policies
“It depends on if, and when, the authorities approach us for, let’s say, a financing arrangement for another ECF programme, and then how long it will take us to get alignment in terms of agreed policies.
- Advertisement -
“I think when we were there, the expectation was that there would be a re-engagement in discussions after the election. That’s my expectation,” Tyson said.
- Advertisement -
He added that the IMF maintains frequent contact with the government through both bilateral engagement and capacity development activities.
IMF Resident Representative Nelnan Koumtingue said there were governance concerns that needed addressing in any future programme.
He said the fund conducted a Governance Diagnostic in 2024 that identified vulnerabilities in corruption prevention.
“I think there is a need to continue this effort so that there is public confidence in the provision of public services and the use of public resources,” Koumtingue said.
- Advertisement -
The Ministry of Finance asked for some time to comment.
But recently Minister of Finance Simplex Chithyola Banda said the government agreed with the IMF to suspend the previous ECF programme with an option to revisit and renegotiate terms after the September elections.
Malawi’s previous ECF arrangement worth $175 million and approved in November 2023, lapsed in May 2025 after the government failed to complete any programme reviews within the stipulated time frame.
