By Taonga Sabola, Pemphero Malimba &Wezzie Gausi
The Economics Association of Malawi (Ecama), Standard Bank Malawi and the World Bank have commended the State of the Nation Address (Sona) which President Peter Mutharika delivered in Parliament Friday.
Ecama president Bertha Bangara Chikadza said it is important that Mutharika has acknowledged that Malawi is still in an economic crisis and outlined measures to revive the economy.
She also applauded Mutharika for highlighting steps to address foreign exchange challenges, including plans to begin producing fertiliser locally.
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Chikadza said fertiliser is one of the commodities that consumes significant amounts of foreign exchange and that local production would be a step in the right direction.
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She also welcomed measures aimed at boosting tourism, including expanding the Malawi Airlines fleet and rehabilitating roads.
Chikadza added that the economists’ body is keen to see whether the national budget, to be presented by Finance Minister Joseph Mwanamvekha, will align with the Sona.
Standard Bank Chief Executive Phillip Madinga said the address has raised hopes that restoring macroeconomic stability and achieving national growth is possible if momentum in implementing targeted reforms is sustained.
According to Madinga, the government’s resolve to stay the course with reforms already underway is welcome.
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He said maintaining discipline through austerity, strict governance and rationalisation measures is key to curbing unnecessary expenditure.
Madinga said the freed-up resources could then be redirected towards growth-inducing development projects.
“To lift economic growth up to 3.8 percent in 2026 and 4.9 percent in 2027 as projected in the Sona will require collaborative efforts from both government and private sector.
“We are ready to partner the government, its agencies, and all well-meaning Malawians to ensure that intended reforms in key economic sectors of mining, tourism, agriculture and youth development are carried out,” he said.
Madinga further noted that the plan to keep inflation below 21 percent signals a downward trajectory in interest rates.
This, he said, should help reinvigorate the private sector through anticipated increases in credit uptake.
“Our hope is that the 2026-27 budget framework to be presented by Minister of Finance in the current seating of Parliament will reflect the commitment to support current reforms.
“We also eagerly await full details on how government will approach the establishment of Sovereign Wealth Fund for proceeds from mining and other natural resources like carbon credits. The mining sector offers great potential to help address Malawi’s fiscal challenges in the medium-to-long term.
“Standard Bank is immensely proud of our expertise in facilitating mining developments across Africa. Malawi’s mining sector stands to benefit from our in-depth capabilities in the sector,” Madinga said.
The World Bank’s newly-appointed country representative Firas Raad said Mutharika’s address struck the right balance between macroeconomic stability, growth and social resilience.
He commended the statement for advancing people-centered principles and practical solutions to economic challenges.
“We agree with His Excellency’s emphasis that whatever is man-made can be solved by men and women,” Raad said.
“His focus on macroeconomic stability is well placed, and we have seen the government take steps in fiscal consolidation and domestic debt restructuring,” he said.
He added that the World Bank encourages the government to sustain reform momentum as it prepares for the national budget in early April.
He said economic stability must go hand in hand with growth to create jobs, reduce poverty and improve living standards.
Raad also welcomed the president’s emphasis on resilience and disaster risk management, describing it as a critical pillar for a country increasingly exposed to climate-related shocks.
Rebecca Chimjeka Matemba contributed to this report
