JOHANNESBURG, June 29 – The International Monetary Fund (IMF) has expressed its readiness to move swiftly towards a new financing programme for Malawi, although it says progress will depend on the government’s commitment to implementing a broad package of economic reforms.
The comments come as discussions continue between the IMF and Malawian authorities over a possible Extended Credit Facility (ECF) arrangement following the conclusion of an IMF mission to the country on 18 June, which ended without a final agreement.
Speaking on the ongoing negotiations, IMF Resident Representative Nelnan Koumtingue said discussions were centred on policies contained in Malawi’s National Economic Recovery Plan and how the Fund could support their implementation through a new lending programme.
According to Koumtingue, “The process is evolving.”
The proposed recovery plan, presented earlier this month by Finance Minister Joseph Mwanamvekha, outlines a five-year strategy aimed at restoring macroeconomic stability. The programme focuses on reducing debt vulnerabilities, strengthening public finances, tackling corruption and expanding social protection measures while the country’s debt restructuring process continues.
Confirming that negotiations remain active, Finance Ministry spokesperson Williams Banda said the government and the IMF had “agreed on the pathway”, although he declined to provide additional details regarding the discussions.
Malawi is seeking renewed financial support after its previous US$175 million Extended Credit Facility expired in May 2025. The programme lapsed after the country failed to complete a required review within 18 months of its approval, leaving Malawi with only an initial disbursement of US$35 million.
The Southern African nation continues to face significant economic challenges, including a heavy public debt burden, persistent foreign exchange shortages and declining donor support, all of which have placed pressure on public finances and economic growth.
A successful agreement with the IMF would provide Malawi with access to additional concessional financing while helping strengthen investor confidence and unlock support from other multilateral development partners. However, securing the programme will depend on the government’s ability to implement the fiscal and structural reforms outlined in its economic recovery agenda.
