Reappointed Finance Minister Simplex Chithyola Banda has expressed confidence that the local economy will improve in 2025.
On Wednesday, President Lazarus Chakwera reappointed Chithyola Banda to be in charge of Malawi’s public purse moving forward.
In an interview at his Namuleri Farm in Kasungu District Thursday, Chithyola Banda described his reappointment as a testament of the confidence that Chakwera has in him.
The local Chancellor of the Exchequer admitted that, just like many economies in the region, the local economy experienced a number of challenges, notably shortage of forex and fuel, last year.
He observed that, last year, the authorities succeeded in bringing back donor confidence, resulting in budget support resumption
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According to Chithyola Banda, if Malawians work together to boost production of export crops such as tobacco, soya beans, groundnuts, tea, sugar and others, Malawi’s economic destiny would change for the better.
He added that the authorities would finalise debt restructuring processes with international lenders.
“The future of the local economy is very bright. We just appeal to Malawians to also take steps in boosting production of various crops that we can export.
“If we export more, we will get more forex and find solutions to forex challenges we have been facing. We, as authorities, will move forward with various forex generating strategies announced last year such as the golden visa initiative, cannabis biomass, carbon trading, labour exports and others,” he said.
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On Wednesday, Scotland-based economist Velli Nyirongo said growth in the local economy could be affected by the huge public debt in 2025.
According to Nyirongo, without significant growth in revenue or reduction in fiscal deficits, Malawi’s debt burden is likely to rise further in 2025.
“Government expenditure may continue to rise, driven by infrastructure development or recovery efforts. However, achieving higher revenues will be crucial to avoid unsustainable borrowing.
“Stability in tax rates and increased government spending could support economic activity, but high debt and governance challenges may limit growth,” he said.
