The International Monetary Fund (IMF) Governance Diagnostic Mission has hailed Malawi for progress recorded in governance, legal framework and administrative reforms.
IMF Deputy Division Chief of Fiscal Operations in the Fiscal Affairs Department Kenji Moriyama made the observation in Lilongwe at the end of the mission.
The mission was aimed at finding out how Malawi is fairing in the area of economic governance.
Sources who attended the end of mission briefing with Finance Minister Simplex Chithyola Banda confided in us that Moriyama observed that, so far, Malawi is faring well as it has done quite a number of reforms such as integration of Integrated Financial Management System (Ifmis), legal framework, and the way the Reserve Bank of Malawi (RBM), Malawi Revenue Authority (MRA) and other institutions are implementing reforms.
IMF Resident Representative Nelnan Koumtingue said the fund provides technical assistance and training to its member countries in a wide range of areas, adding that the latest mission was one of such activities.
- Advertisement -
According to the November 2023 IMF Staff Report on Malawi, the fund continues to provide technical assistance (TA) and training to support the authorities’ reforms and help to build capacity, coordinating closely with TA from other development partners.
It adds that Public Finance Management TA to the Ministry of Finance and Economic Affairs has focused on reforms in the critical areas of bank reconciliation, payment efficiency, in-year and year-end financial reporting, and budgeting.
It also focuses on expenditure control, cash management, State-owned enterprises oversight, public investment management, implementation of the new Ifmis and management of fiscal risks.
The November report had noted that while some progress has been made, there is a need for the authorities to ramp up implementation of the new Ifmis, cash management, commitment controls, automatic reconciliation with the government’s bank statements, and fiscal reporting and to improve the quality, analysis, use and publication of available information.
- Advertisement -
- Advertisement -
During the meeting, Chithyola Banda said they are happy that the IMF Governance Diagnostic Mission has concluded its mission in the country after meeting stakeholders critical in governance.
“When we say the economy is recovering it means people have a right to participate in economic activities and that government is respecting people’s rights and fundamental freedoms.
“Governance also ensures equality and fairness in the distribution of resources; so, issues to do with corruption, accountability and transparency, among other things come into play,” he said.
Chithyola Banda added that recommendations from the IMF Team would further enhance governance and people’s active participation in the economic development of the country.
Secretary to the Treasury Betchani Tchereni said they consulted almost every section of the society including CSOs, chiefs, private sector and opinion leaders during the pre-budget consultation in order to entrench the spirit of economic governance in the country.
