Malawi continues to face challenges in managing its economy effectively, scoring 2.0 out of 6.0 in 2024 on the economic management cluster of the World Bank’s Country Policy and Institutional Assessment (CPIA).
This is below the International Development Association (IDA) average of 3.2 for Sub-Saharan Africa.
The findings are part of the World Bank’s annual CPIA Africa report titled “Policies for Better Service Delivery,” released in July 2025.
The report assesses policy and institutional quality across African countries, focusing on their ability to support effective public service delivery.
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In the economic management cluster, the CPIA evaluates the quality of monetary and exchange rate policy, fiscal policy, and debt policy and management.
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In 2024, Malawi scored 2.5 in monetary and exchange rate policy, compared to the Sub- Saharan Africa IDA average of 3.5. The country scored 1.5 in fiscal policy versus a regional average of 3.1, and 2.0 in debt policy and management, also below the 3.1 regional average. The report, compiled by the Office of the Chief Economist for the Africa Region, noted that 2024 saw a wave of economic reforms across Sub-Saharan Africa aimed at improving macroeconomic performance.
It noted that while some countries adjusted interest rates to stabilize inflation, others shifted policy stances to support economic growth or curb inflationary pressures.
However, Malawi showed notable progress in social inclusion policies, scoring 3.5, surpassing both the Sub-Saharan Africa IDA average and the borrower average of 3.3.
The improvement was largely driven by expanded social safety net programs and school feeding initiatives.
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Economics Association of Malawi President Bertha Bangara Chikadza commented that Malawi’s score of 3.0 on the 2024 CPIA reflects moderate performance in terms of policy and institutional quality.
Chikadza said this implies that while Malawi meets some foundational standards regarding sound policy and institutional governance, significant gaps remain.
“This suggests that while maintaining basic macroeconomic and institutional functions, Malawi is still lagging behind in terms of critical areas like public service delivery, governance effectiveness and structural transformation,” she said.
