Malawi’s IMF Extended Credit Facility fate today

Sosten Gwengwe

Malawians will today know whether the country will have the highly anticipated Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF).

This follows the conclusion of the first round of negotiations between Capital Hill and officials from the Bretton Woods institution.

The IMF Mission team jetted into the country two weeks ago to negotiate with the authorities on the possibility of resuming the ECF programme.


Finance Minister Sosten Gwengwe Sunday said the Treasury will update Malawians on the outcome of the meeting with the IMF this morning.

“We will brief the media tomorrow morning. So, hold your breath,” Gwengwe said.

Sources told The Daily Times that the IMF is also expected to issue a statement regarding their mission to Malawi.


The source confided in us that the fund has insisted that the outcome of the audit report on forex misreporting remains a deciding factor in ECF negotiations.

During the negotiations with the IMF, the local team was joined by a team of experts from the French firm, Global Sovereign Advisory (GSA), who assisted the local negotiators, especially on debt sustainability issues.

Malawians have in recent months been praying for a new ECF programme with the IMF following the cancellation of the previous one in mid-2020.

Such a programme will help unlock budgetary support, which has dried up in recent times in the absence of an IMF programme.

The development has seen Malawi facing an acute shortage of forex, resulting in delays to import critical requirements for the country, including medicine.

On Thursday two week ago, Reserve Bank of Malawi Governor Wilson Banda announced that the local unit, the Kwacha, had been devalued by 25 percent to correct a mismatch between black-market exchange rate and that quoted in bureaux and authorised dealer banks.

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