By Burnett Munthali
The International Monetary Fund (IMF) says Malawi has made significant progress towards a possible new programme under the Extended Credit Facility (ECF) following two weeks of discussions in Lilongwe.
The IMF team, led by Malawi Mission Chief Justin Tyson, held meetings from September 22 to October 6, 2026, focusing on economic developments, fiscal and monetary policies, and reforms under the National Economic Recovery Plan (NERP).
The Fund said the government has taken steps to restore macroeconomic stability, including increasing domestic revenue and controlling public expenditure.
It also cited fuel and sugar pricing reforms, which it said have helped improve market functioning.
Discussions on reducing Malawi’s public debt also advanced, with the proposed programme expected to support fiscal consolidation while protecting social spending for vulnerable households.
The programme will also aim to strengthen monetary policy, maintain financial-sector stability and address market distortions affecting economic growth and productivity.
However, the IMF warned that Malawi’s economic outlook remains challenging due to climate shocks, declining demand for tobacco and global economic pressures linked to the war in the Middle East.
Although inflation has moderated in recent months, the Fund said non-food inflation remains high.
During the mission, the IMF team met Finance Minister Joseph Mwanamvekha, Reserve Bank of Malawi (RBM) Governor George Partridge, Secretary to the Treasury Cliff Chiunda and other senior government officials and development partners.
The IMF said both sides have made considerable progress in developing policies and reforms that could support a new ECF programme.
However, no final agreement was announced, as discussions will continue to finalise the policy package before it undergoes the Fund’s internal approval process, including consideration by its Executive Board.
The development comes as Malawi continues efforts to stabilise its economy, manage public debt and improve access to foreign exchange.
