Norwegian Ambassador to Malawi Ingrid Marie Mikelsen has implored the Malawi Government to keep on taking necessary measures to guard the Extended Credit Facility (ECF).
The International Monetary Fund (IMF) gave Malawi an ECF after the country sweated since late June in the year 2020 to reach that level
She was commenting on the State of the Nation Address (Sona) delivered by President Lazarus Chakwera on Friday.
“The President’s speech was very positive. I see that there is a glimmer of hope but that hope has come from the International Monitory Fund (IMF)’s [ECF) achievement and securing the extended credit facility, which was largely supported by all donor communities represented in the country,” Mikelsen said.
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She, however, said the government should walk the talk on keeping the necessary fiscal and budgetary reforms.
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“We support the reforms that the government has taken, though they are bruta and harsh,” she said.
In his speech, President Lazarus Chakwera pointed out that Malawi’s success in securing the ECF with IMF and the subsequent restoration of budgetary support from the European Union and the World Bank have signalled this to international investors.
“The fact that my administration has brought back fiscal discipline in public finance management and implemented economic reforms to the point of regaining donor confidence and securing investments from the International Monetary Fund, the World Bank, the European Union, and others towards direct budgetary support in the coming fiscal year means that recovery is happening, and we need to take advantage of it and spread it to more people,” Chakwera said.
On his part, African Institute for Development Policy Country Manager Elia Zulu said the ECF has opened more important doors for Malawi.
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“The ECF has opened the window of opportunity to Malawi. What is remaining is to make sure that we step up efforts to make sure that we address bottlenecks,” Zulu said.
On November 15 2023, the IMF approved the ECF arrangement, which aimed to support the Malawi Government’s commitment to restore macroeconomic stability, build a foundation for inclusive and sustainable growth, including strengthening resilience to climate-related shocks, and address weaknesses in governance and institutions.
