Malawi must urgently confront deep-seated structural weaknesses if it is to move from economic stabilisation to sustained recovery and growth beyond 2026, Economics Association of Malawi (Ecama) president Bertha Bangara Chikadza has said.
Speaking in an end-of-year economic outlook, Chikadza said the country’s growth prospects would remain fragile unless authorities decisively address three binding constraints namely, the debt interest trap, a weak foreign exchange and export base and low productivity in agriculture and industry.
“Beyond 2026, Malawi must fix these structural constraints if it is to escape a cycle of perpetual stabilisation and achieve sustained growth,” she said.
Chikadza outlined reform priorities beginning with agricultural commercialisation and diversification. She said Malawi must move beyond heavy dependence on maize and invest in high-value export crops such as macadamia and soybeans, alongside irrigation infrastructure and agro-processing value chains.
Chikadza added that industrial ambitions would remain unattainable without reliable and affordable power.
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The debt and governance crisis at the Electricity Supply Corporation of Malawi must be resolved to unlock independent power producer investments and expand generation capacity.
“Energy must be treated as an industrial platform. Projects such as Mpatamanga [Hydroelectric Power] are critical medium-term enablers for industrialisation and power reliability,” Chikadza said.
She also stressed the importance of deepening digital and financial inclusion, arguing that wider use of mobile money and fintech solutions could improve access to finance, reduce transaction costs and increase efficiency in both public and private sector operations.
On governance, Chikadza called for stronger public financial management systems, greater transparency in procurement and more robust anti-corruption institutions.
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She said improving the efficiency of public spending and rebuilding trust with investors and development partners remained essential.
She urged government to strengthen commitment controls, enforce procurement discipline and implement a credible medium-term fiscal framework to reduce borrowing costs.
“The [International Monetary Fund’s] debt and interest projections underscore the urgency of reform. Without institutional discipline, debt servicing will continue to crowd out development spending,” she said.
Consumers Association of Malawi executive director John Kapito called for sound and realistic price stabilisation policies to cushion consumers from the elevated cost of living.
“Our problem has always been food supply. Once government puts in place measures to maximise food production this year, most of these problems should ease,” Kapito said.
Late last year, the Reserve Bank of Malawi revised down its 2025 GDP growth forecast to 2.7 percent from 2.8 percent, citing reduced activity in manufacturing, wholesale and retail trade due to persistent foreign exchange shortages, power outages, fuel supply disruptions and high inflation.
