In a high-level meeting with International Monetary Fund (IMF) officials led by the IMF Managing Director Kristalina Georgieva , Malawian President Lazarus Chakwera has reaffirmed his government’s dedication to preserving the country’s IMF-supported economic program.
The discussion, which took place at the IMF headquarters in Washington, D.C., centered on Malawi’s implementation of the Extended Credit Facility (ECF) arrangement approved by the IMF last September. This $174 million, two-year program aims to restore macroeconomic stability and align with Malawi’s long-term vision for economic growth and development as outlined in the Malawi 2063 strategy.
However, President Chakwera acknowledged that his administration has faced difficulties in meeting some ECF targets due to external shocks impacting the Malawian economy. As an agriculture-dependent nation, Malawi has been particularly vulnerable to climate-related disruptions, such as the devastating effects of the El Niño weather phenomenon that affected over 5.7 million people and fueled demand-pull inflation.
Additionally, Chakwera cited lower-than-expected government revenue collections as a factor constraining the national budget and creating challenges for economic management.
Despite these headwinds, the Malawian leader expressed optimism about his country’s ability to regain macroeconomic footing and ensure the continued viability of the IMF program. “We believe in our ability to put government spending back on track,” Chakwera stated, emphasizing his determination to complete the First Review of the ECF arrangement without jeopardy.
The president’s meeting with IMF Managing Director Kristalina Georgieva came on the heels of his successful engagements at the United Nations General Assembly in New York, underscoring Malawi’s commitment to strengthening its ties with the international community and securing the support necessary to navigate its economic difficulties.
As Malawi continues to grapple with the impact of climate change and other external shocks, President Chakwera’s reaffirmation of the government’s resolve to uphold its IMF program signals a steadfast determination to steer the country towards a more stable and prosperous future.
