Malawi must stand on its own to defeat shocks - minister
Consultative meetings this month aim to garner stakeholder input into the next national budget.
LILONGWE, Malawi— The Finance and Economic Affairs Minister said Wednesday that Malawi must “stand on its own feet” to recover from recent economic shocks, writes Esther Banda.
“I can assure you that by the power and the grace of the Almighty God, the government will do its level best to fully recover from the shocks that the country experienced in 2022 and 2023,” minister Simplex Chithyola Banda told a pre-budget meeting.
He said the economy grew 1.5% last year, up from 0.9% in 2022.
“Moving forward, we expect a gradual recovery with 3.2% growth in 2024 on account of improvements in foreign exchange and agriculture investments,” he said.
Banda said the government would support private mega-farms to produce food for domestic use and export under its economic recovery plan.
It is also looking to carbon trading, diaspora engagement and mining to diversify the largely agricultural economy, he added.
The government has set monetary, fiscal and debt sustainability targets for its 2024-25 budget, while a $174 million International Monetary Fund aid deal will also “help restore macroeconomic stability,” Banda said.
Economist Lucius Pawa said significant investment is needed to develop the mining sector.
Kennedy Machira, a agriculture economics professor, said more dams and irrigation are needed to promote food security and economic recovery through year-round cropping.
Consultative meetings this month aim to garner stakeholder input into the next national budget.