The International Monetary Fund (IMF) says Malawi and the Fund have made considerable progress towards designing a package of reforms that could underpin a programme under the Extended Credit Facility (ECF) arrangement.
An IMF team led by Malawi Mission Chief Justin Tyson held discussions in Lilongwe from 22 September to 6 October 2026, focusing on economic developments, fiscal and monetary policy, and reforms aimed at restoring macroeconomic stability.
Tyson said the Malawi Government had made progress in implementing reforms under the National Economic Recovery Plan (NERP), including increasing domestic revenue and controlling expenditure in line with the 2026/27 budget.
He said fuel and sugar pricing reforms had also helped improve market functioning, while discussions were advanced on measures to reduce Malawi’s high public debt burden.
The IMF noted that inflation had moderated in recent months, although non‑food inflation remained high. Economic growth has been affected by climate shocks and declining demand for tobacco, while terms‑of‑trade shocks linked to the war in the Middle East have added pressure.
During the mission, the IMF team met the Minister of Finance, Economic Planning and Decentralization, Joseph Mwanamvekha, Reserve Bank of Malawi Governor George Partridge, Secretary to the Treasury Cliff Chiunda and Deputy Governor Henry Mathanga, as well as other senior government officials and development partners.
The proposed ECF programme would support fiscal consolidation while protecting social spending, strengthen monetary policy, preserve financial stability and improve governance.
Discussions will continue to finalise the policy package, subject to IMF management approval and consideration by the Executive Board.
By McDonald Chiwayula
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