Signalling a shift towards economic self-reliance, President Lazarus Chakwera has announced Malawi’s decision to reject the International Monetary Fund’s (IMF) Extended Credit Facility (ECF) during the opening of the 35th Malawi International Trade Fair in Blantyre on May 22, 2025. The President emphasized that the stringent conditions attached to the IMF loan would have imposed undue hardship on Malawians, particularly the business community.
“We cannot accept financial assistance that comes with conditions detrimental to our citizens and enterprises,” Chakwera stated, highlighting the government’s commitment to fostering a conducive environment for local businesses. He underscored the importance of supporting entrepreneurs and small enterprises as the backbone of the nation’s economy.
The President’s remarks come in the wake of the IMF’s termination of Malawi’s $175 million loan program after only $35 million was disbursed over 18 months, citing the country’s failure to meet the program’s requirements. Chakwera criticized the IMF’s conditions, which included reducing subsidies and increasing utility costs, arguing that such measures would stifle local businesses and burden ordinary Malawians.
At the trade fair in Blantyre on Thursday, President Chakwera also announced initiatives aimed at bolstering the local economy, including plans to provide over 1 trillion Malawian Kwacha in financial support to youth and women entrepreneurs over the next five years. He highlighted the government’s efforts to streamline business processes, such as digitizing export permits and establishing one-stop border posts to facilitate trade.
Furthermore, the President addressed the upcoming September elections, urging political parties to maintain peace and avoid violence. “Violence will not secure victory; the winner is already us,” he said, emphasizing the need for a stable environment to ensure economic growth and investor confidence.
Chakwera’s stance marks a significant pivot in Malawi’s economic policy, prioritizing domestic empowerment over external financial dependencies. By rejecting the IMF’s conditions and focusing on local enterprise development, the President aims to chart a new course towards sustainable economic growth and self-sufficiency.
