By Suleman Chitera

LILONGWE — Minister of Finance, Economic Planning and Decentralisation Joseph Mathyola Mwanamvekha is increasingly being recognised by government supporters and sections of the economic community as one of the key figures driving Malawi’s efforts to restore macroeconomic stability and rebuild an economy that entered the new administration facing severe fiscal and external pressures.

Mwanamvekha returned to the Finance Ministry at a particularly difficult moment. Malawi was experiencing persistent foreign-exchange shortages, high inflation, weak export performance, mounting public debt and significant fiscal pressures. The World Bank has described the country’s economic situation as fragile, noting that real GDP growth was only 1.9 percent in 2025 and that GDP per capita had declined for a fourth consecutive year.

The scale of the challenge has made economic recovery one of the most important tests facing President Arthur Peter Mutharika’s administration, with Mwanamvekha at the centre of the government’s fiscal response.

From crisis management to economic reconstruction

Mwanamvekha’s approach has focused heavily on fiscal discipline, expenditure control, revenue mobilisation and restoring confidence in Malawi’s economic management.

The 2026/27 National Budget, which he presented to Parliament, amounts to K10.978 trillion and is designed to reduce the fiscal deficit from 11.9 percent to 9 percent of GDP through stronger revenue collection and tighter expenditure controls. Government is also targeting a reduction in inflation as macroeconomic reforms take effect.

These measures are being implemented against the background of years of accumulated economic difficulties. The World Bank says Malawi’s fiscal deficits since 2022 have averaged 10.9 percent of GDP, among the largest in Sub-Saharan Africa, while persistent deficits have contributed to rising public debt and constrained private-sector access to credit.

Mwanamvekha has therefore been tasked with doing more than preparing annual budgets. His ministry has become a central institution in the government’s wider attempt to restore fiscal credibility, rebuild foreign-exchange availability, improve debt sustainability and create conditions for investment.

A difficult inheritance

Supporters of the current administration argue that Mwanamvekha inherited an economy badly weakened during the previous administration under former President Lazarus Chakwera.

That political argument, however, needs to be viewed alongside independent economic assessments. International institutions have documented substantial fiscal deficits, external imbalances, foreign-exchange shortages, high inflation and declining living standards in the period preceding the change of government. The World Bank reported that Malawi’s fiscal position had deteriorated significantly and that the country needed urgent reforms to restore macroeconomic stability.

Parliamentary records also show that Mwanamvekha’s November 2025 Mid-Year Budget Review identified revenue shortfalls, expenditure pressures, persistent foreign-exchange shortages and a widening fiscal deficit.

This provides the context in which the Finance Minister’s performance should be assessed: not against an economy operating normally, but against an economy requiring substantial stabilisation and structural reform.

Cutting expenditure and restoring discipline

One of the government’s most important messages has been that Malawi cannot continue financing development through uncontrolled borrowing and excessive expenditure.

Mwanamvekha has pushed expenditure-control measures while attempting to protect priority sectors. Government has projected that reforms could reduce the 2025/26 budget outturn by about K158 billion.

The government’s strategy also includes debt restructuring, stronger domestic revenue mobilisation and improvements in public financial management.

The World Bank has similarly identified fiscal discipline, improved revenue systems, completion of debt restructuring and stronger public-sector efficiency as essential components of Malawi’s economic recovery.

Agriculture at the heart of recovery

Mwanamvekha’s economic programme also recognises that Malawi cannot achieve sustainable recovery without fixing agriculture and food security.

The 2026/27 Budget allocates K931.1 billion to agriculture, including support for food production, irrigation and strategic grain reserves. This comes after the country faced a maize deficit estimated at 1.02 million metric tonnes.

The strategy is significant because agricultural productivity affects almost every part of the Malawian economy — from food prices and inflation to household incomes, foreign exchange and industrial activity.

Seeking investment and foreign exchange

Another major component of the recovery agenda is expanding Malawi’s productive and export base.

Government has identified agriculture, mining, tourism and manufacturing as sectors capable of generating employment, attracting investment and increasing foreign-exchange earnings.

This is particularly important because Malawi’s economic problems are closely linked to its chronic shortage of foreign exchange. The World Bank says the country continues to face critically low reserves and an import bill substantially larger than its exports.

Mwanamvekha’s challenge, therefore, is not simply to manage government finances but to help create an economy capable of producing more, exporting more and reducing dependence on imports and external assistance.

International partners watching the reforms

There are also signs that Malawi’s reform programme is attracting attention from international partners.

During a June 2026 mission, the International Monetary Fund said Malawian authorities had taken actions to reflect global market prices, stabilise the fiscal situation and address food-security challenges. The IMF said discussions were continuing on policy reforms that could be supported under a potential Extended Credit Facility arrangement.

The British High Commissioner to Malawi also commended the government’s austerity measures aimed at restoring macroeconomic stability and encouraged the government to maintain the reform path in order to strengthen confidence among cooperating partners.

But recovery is not yet complete

While Mwanamvekha deserves recognition for leading the government’s fiscal programme, it would be premature to declare Malawi’s economic crisis over.

The World Bank continues to warn that foreign-exchange shortages, high inflation, fiscal pressures and structural weaknesses remain significant constraints. Its current projection puts economic growth at only 2.3 percent in 2026 and 2.7 percent in 2027 — levels that remain insufficient to generate the jobs and improvements in living standards Malawi needs.

That means the real measure of Mwanamvekha’s success will ultimately be whether reforms translate into tangible improvements in the daily lives of ordinary Malawians.

Malawians want more than improved budget figures. They want reliable fuel supplies, affordable food, stable prices, access to foreign exchange, employment opportunities, stronger businesses, functioning public services and greater purchasing power.

A minister under pressure to deliver

Mwanamvekha’s supporters see his return to the Finance Ministry as a significant advantage because he brings experience at a time when Malawi requires firm economic management.

His supporters argue that the government inherited a deeply distressed economy and that stabilising it requires difficult decisions that may not produce immediate results.

The government itself has acknowledged that recovery will take time. Mwanamvekha has urged Malawians to remain patient as reforms under the National Economic Recovery Plan are implemented, arguing that the measures being introduced are intended to restore stability and improve livelihoods.

The emerging picture, therefore, is not one of an economy that has already been completely restored, but of a country attempting to move from crisis management towards recovery.

The bigger test

For Mwanamvekha, the political praise will ultimately matter less than measurable economic outcomes.

If fiscal discipline is maintained, debt restructuring progresses, inflation falls, foreign-exchange availability improves, agricultural production increases, exports expand and private investment returns, his role in the recovery will become increasingly difficult to overlook.

For now, Mwanamvekha has positioned himself at the centre of Malawi’s economic reconstruction programme.

The road ahead remains difficult. But after years of economic instability, the government’s ability to restore confidence, impose fiscal discipline and build a productive economy will determine whether Malawi can finally break out of the cycle of debt, foreign-exchange shortages, inflation and weak growth.

For Mwanamvekha, the task is therefore much bigger than balancing the national budget. It is about rebuilding confidence in Malawi’s economy and creating the foundations for sustainable prosperity.