Reserve Bank of Malawi governor Dr. MacDonald Mafuta Mwale says there is potential that inflation, which is at 29.2 percent, might go upwards if not careful. In his presentation on the status of Malawi’s economy at the Public Affairs Committee 6th All-Inclusive Stakeholders Conference, Mwale has, however, said the recent drop in inflation remains a good sign though it can be temporary. He said: “We can easily go back to the high levels.” The Central Bank governor is set to unpack the reasons why inflation will likely go upwards in his ongoing presentation. Mafuta Mwale says there are some loans that government acquired in the 1970s and are still being paid up to date. Mwale has said this in his presentation at the Public Affairs Committee 6th All-Inclusive Stakeholders Conference currently underway at Mount Soche in Blantyre. He said: “There are some loans that are old as far back as 1970. The problem is that the system—the government does not default. If the government can default, the repercussions are huge. “Debt is crippling whatever we do in terms of service delivery.”

On Monday 19th May, 2025, the Roads Authority held a consultative meeting with Dowa District Executive Committee on the upgrading of the 21 kilometer Chimwaza – Nambuma Road Project (S115/T344) to bitumen/tarmark standard. The Roads Authority announced that government is to start construction of the road, which will cost around Mk18.3 billion. Malawi government will finance the project which will take around 18 months to complete starting May 2025. On the day, the Roads Authority also held consultative meetings with communities along or surrounding Chimwaza – Nambuma road, namely, Chimwaza, Kalonga, Kasolo, Dangaliro and Nambuma. Through the meetings, the Roads Authority in conjunction with Dowa District Council met chiefs, Village Development Committees, faith leaders, community members, security agencies amongst others to raise awareness of the project. Once complete, the road is expected to ease mobility challenges, improve transportation of agricultural produce, improve road safety and overall improvement in social economic activities of the people around the area

The termination of Malawi’s Extended Credit Facility (ECF) program by the International Monetary Fund (IMF) has raised significant concerns, and it’s understandable that many interpret this as a clear loss of confidence in the Chakwera administration. Here’s a breakdown of why this perspective holds weight: * Failure to Meet Program Targets: * The IMF’s stated reason for the termination—the lack of completed program reviews due to Malawi’s failure to meet ECF conditions—strongly suggests dissatisfaction with the government’s economic management. * Key issues cited by the IMF, such as persistent fiscal indiscipline and inadequate revenue mobilization, point to a perceived lack of commitment or capacity to adhere to agreed-upon economic reforms. * Implications for Investor Confidence: * An active IMF program is often seen as a seal of approval by international investors and other financial institutions. Its termination can severely damage Malawi’s credibility, potentially deterring crucial foreign investment. * This loss of confidence can also impact Malawi’s ability to secure loans and aid from other multilateral partners, further exacerbating the country’s economic woes. * Concerns About Fiscal Discipline: * The IMF’s emphasis on the need for fiscal discipline highlights concerns about the government’s spending habits. In a nation with limited resources, this is a very important factor. * This is a strong indicator that the IMF feels that the Chakwera administration has not been able to keep its fiscal house in order. * The timing of the termination: * The fact that the ECF program terminated within a relatively short time frame of being approved, is also a cause for concern. While the Malawian government has presented its own narrative, emphasizing a “mutual agreement” and concerns about the program’s potential impact on citizens, the objective facts of the programs termination, speak strongly. In essence, the IMF’s decision sends a strong signal that it has serious reservations about the Chakwera administration’s ability to effectively manage the country’s economy.