By Suleman Chitera
Lilongwe, Malawi — The Minister of Finance, Joseph Mwanamvekha, has announced that the Government of Malawi will intensify efforts to trace and control large volumes of cash circulating outside the formal banking system — a situation fueling the black-market foreign exchange trade.
Speaking to journalists in Lilongwe upon his return from meetings with the World Bank and the International Monetary Fund (IMF), Mwanamvekha emphasized that the government is committed to restoring economic stability through strong fiscal discipline and responsible financial management.
Government to Tighten Control on Unregulated Cash Flows
Mwanamvekha said that huge amounts of money currently changing hands outside the formal banking sector are undermining Malawi’s foreign exchange market and creating unnecessary pressure on the Malawi Kwacha.
“We are putting in place measures to monitor and reduce cash circulation outside banks. This practice fuels illegal forex trading and distorts the formal financial system,” he said.
Fiscal Discipline to Reduce Wasteful Spending
The Finance Minister highlighted the administration’s plan to cut non-productive expenditure, citing examples from the previous administration such as:
High fuel consumption on government luxury vehicles
Excessive foreign travel by officials
Unnecessary government procurement
“These are areas where we can save billions. Fiscal discipline is key to rebuilding confidence in our economy,” Mwanamvekha stressed.
Focus on Economic Stability and Inflation Control
He reaffirmed the government’s goal to stabilize the economy by improving inflation, foreign reserves, reserve money, and interest rates. Mwanamvekha noted that when the Democratic Progressive Party (DPP) left office in 2020, Malawi had foreign reserves exceeding US$1 billion and a policy rate of 12%.
“We want to restore that level of stability. Our aim is to maintain at least three months of import cover and bring down inflation again,” he added.
President Mutharika’s Directives: Food Security and Fuel Stability
Mwanamvekha revealed that President Arthur Peter Mutharika directed the delegation to engage the IMF and World Bank on two urgent fronts:
- Food Security Support — to ensure maize and other staple foods remain available and affordable.
- Fuel and Fertilizer Availability — to prevent shortages that threaten key sectors such as agriculture and transport.
“The President emphasized that our discussions should focus on supporting the economy, stabilizing essential supplies, and restoring investor confidence,” Mwanamvekha explained.
Outlook: Restoring Investor Confidence
The Finance Minister concluded by reaffirming the government’s commitment to transparent economic management, noting that ongoing reforms aim to attract foreign investment and rebuild international partnerships.
“Our mission is to bring back stability, restore trust in Malawi’s economy, and ensure that our policies benefit every Malawian,” he said.
