The President of the Economics Association of Malawi (ECAMA), Bertha Bangara Chikadza, has provided a critical analysis of the country’s economic performance, citing significant underperformance in donor grants and rising inflationary pressures.
Speaking during a pre-budget consultation in Lilongwe, Chikadza emphasised the need for realistic fiscal planning to tackle Malawi’s development challenges.
According to Chikadza, donor grants fell significantly short of expectations, underperforming by 88 percent from foreign governments and 60 percent from international organisations. She warned that continued reliance on these unpredictable grants could jeopardise national development plans.
She further observed that inflation had exceeded projections, rising to 33 percent against an anticipated 28 percent, primarily due to supply chain disruptions.
Chikadza stressed the importance of allocating more resources to transformative investments, such as irrigation, agricultural mechanisation, and tourism.
“We need to shift resources to sectors that can generate sustainable growth, such as mining and tourism, rather than over-relying on agriculture,” she said.
She also addressed inefficiencies in government spending, noting that Malawi loses approximately 20 percent of its annual budget to financial leakages.
“We must prioritise fiscal discipline and accountability to eliminate these losses,” she asserted.
ECAMA has recommended investing in energy, road infrastructure, and agricultural modernisation to boost production and exports. Additionally, the economic think tank has urged better integration of informal sector revenues and the establishment of contingency funds for natural disasters.
The organisation says its call to action underscores the importance of policy consistency and inter-ministerial coordination to achieve economic resilience and sustainable growth.