Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has described State President Professor Arthur Peter Mutharika’s State of the Nation Address (SONA) as a clear sign of the government’s commitment to setting the local economy on a recovery path.
MCCCI is of the view that the measures outlined in the SONA by the President for various sectors, as well as those to do with cutting government expenditure, if effectively implemented, can help restore business confidence, improve productivity and stimulate investment.
President Professor Arthur Peter Mutharika on Friday delivered his first State of the Nation Address (SONA) at Parliament in Lilongwe, under the theme “Path to Economic Recovery: Delivering a People-Centred Development.”
In the 35-minute address, the President outlined his administration’s key priorities for the year ahead at a time when Malawi is grappling with severe economic challenges.
Among the major focus areas highlighted in the SONA are macroeconomic growth, agriculture and food security, health, education, public sector reforms, mining reforms, decentralisation and local development.
Economic outlook
Despite sailing through troubled waters, President Mutharika projects the economy to grow by 3.8 percent this year and 4.9 percent in 2027. He also expressed optimism that inflation will ease to 21 percent this year, down from 28 percent recorded in September last year.
He said this is doable as maize prices and other important products, including building materials such as cement, have taken a nosediving trajectory.
Recognising Malawi’s status as an agro-based economy, the President placed strong emphasis on agriculture and food security as central pillars of the country’s recovery and long-term development agenda.
Food security
Mutharika said so far, his government has distributed 65% of the targeted 1.1 million beneficiaries of the Farm Inputs Subsidy Programme (FISP).
According to the President, by this time last year, only 45% of beneficiaries had received fertiliser.
Despite assuming office barely a week before the onset of the planting rains, Mutharika said his government moved swiftly to ensure that affordable fertiliser was accessible to many farmers across the country.
The President has guaranteed that farmers expect a better and improved delivery of FISP in the 2026/27 farming season. He said when he assumed office, Malawi was in a serious food crisis, saying the price of maize was beyond the reach of many families.
“Today, maize is selling at between K38,000 and K55,000 per 50kg bag from around K100,000 before my Government took over,” he said.
The President further said that the Mega Farms Programme will be reviewed and redesigned to suit his government’s plans on food security.
Having declared a state of disaster in October last year due to hunger caused by the effects of climate change, Professor Mutharika said organisations and people of goodwill responded positively to the call.
He said 4 million Malawians who required food relief worth K209bn have been assisted and continue to benefit until next month.
He mentioned that so far, K138bn has been mobilised.
Energy and Infrastructure
Energy, positioned as one of the factors that drives the economy, President Mutharika foresees power generation jumping from the current 551 Megawatts to 1000 Megawatts by 2030.
According to the President, so far 31 megawatts have been restored at Tedzani Hydro power station, 10 megawatts commissioned at Raiply Biomass, as well as 10 megawatts installed at Nanjoka-Egenco Solar in Salima.
He said his government has a target to double fuel storage capacity from 60 million to 120 million litres.
Mutharika places decentralisation at the heart of his government agenda. This is evidenced by increasing the Constituency Development Fund (CDF) from K220 million to K5bn per constituency per year starting from the 2026-2027 financial year.
Acknowledging that a good road network is a catalyst for the national economy, President Mutharika said he has directed that tollgate revenues along the M1 Road be ring-fenced and designated exclusively for its maintenance.
He said the development will assist in improving the M1 road condition from Nsanje to Chitipa, saying it is in bad shape due to years of maintenance negligence.
The President further said he has directed that the road maintenance must resume with immediate effect, including the construction of Nsipe–Liwonde, Masasa–Golomoti–Monkey Bay road, Mangochi–Monkey Bay, among others.
He also spoke highly of Marine and Water Transport is part of his government’s efforts to position Malawi as a competitive hub for regional trade.
For the SONA aspirations to come to fruition, President Mutharika emphasized that there should be no room for corruption.
He said he is making Malawi a land of Justice and has since issued a strong warning that there will be no sacred cows in the fight against corruption.
The President said his government will arrest anyone entangled in corrupt malpractices, regardless of status.
“I mean, anyone. It does not matter whether you are a Cabinet Minister, party or government official, I will shield no one,” he said.
The Malawi leader has further called on the three arms of government, the Executive, Judiciary, and Legislature, to love the country by acting in the best interest of the country.
Social sectors
On education, President Mutharika said his government’s agenda on free secondary school is progressing as planned.
He said so far, 1,800 students who had dropped out of school have returned to school.
The President further announced an increase in the number of beneficiaries of student loans from 32,480 to 38,000.
Mutharika also announced the resumption of funding for Mombera University in Mzimba.
On health and sanitation, the President said his government has increased the health budget by K17bn and K5bn for children’s vaccines.
According to Mutharika, the government has secured a $744 million U.S. grant to strengthen the country’s health systems.
“We have resolved drug shortages in our hospitals, and essential medicines are now available. Mzuzu Central Hospital will start dialysis services, and the construction of Blantyre and Chikwawa District Hospitals will begin soon”. He said.
Industralisation and mining
Government also takes tourism and Mining as important issues to revitalise the national economy.
He said so far, some tourism flagship projects are progressing as planned. These include Salima Integrated Tourism Resort and Likoma Activity Centre.
In the Mining sector, the President said he suspended the issuance of mining licenses to bring sanity and reforms to the sector while the licence registry audit is underway. He said the ban on mineral exports is still in effect to strengthen the capacity to negotiate new mining agreements.
The Malawi leader further said he puts the lives of young people and women at heart. This is why he has placed K200 million per constituency for youth and women empowerment through soft loans.
“Mr Speaker, Sir, we have also set aside K250m national grants for persons with disabilities, and my government will continue supporting operations of the National Children’s Commission,” said Mutharika.
He said that in the past four months, his government has managed to cancel fraudulent contracts in the government and all state-owned enterprises.
Weighing in his views, Publicity Secretary for the Political Science Association of Malawi, Mavuto Bamusi, agreed with the captains of industry that President Mutharika has provided a roadmap for economic recovery.
“Most importantly, the President has condemned corruption in the strongest terms, and this is what Malawians of goodwill expected,” Said Bamusi.
A governance commentator, Enerst Thindwa, said the President has exonerated himself from detractors and exuded confidence in people’s hearts.
“People were very much interested in so many aspects, beginning with the economy, because this is the area that was ruined before the election. Adherence to economic reforms by the government as we have led to the ban on unnecessary local and international travel,” he said. “The reduction of Principal Secretaries from 80 to 32, that’s another way people appreciate that the President is walking the talk.”
Thindwa said Malawians will now be watching closely to see the continuation of these commitments and how they will translate into action.
