IMF nods to Malawi: Approves US$15m funds

Goodall Gondwe

At the heat of increased market basket, it appears good tidings are hitting Malawi.

This follows the news that the International Monetary Fund (IMF) has approved a whooping $15.4 Million funds to Malawi.

Goodal Gondwe
Finance Minister Goodall Gondwe

The funds are meant to bankroll a three year long bid to stabilise small scale businesses and the economy.

Malawi was under scrutiny recently over its Extended Credit Facility (ECF).

The move was reached by the IMF Board yesterday, according to reports.

Last month, the IMF had said Malawi’s economy continues to grow while inflation remains on a declining trend. Moderate economic growth is likely to strengthen in 2019, followed by a rise to as high as 7 percent over the medium term.

“Growth will be backed by improved electricity generation, better irrigation infrastructure and cropping techniques, greater access to finance, and an improved business climate. Inflation is expected to reach 9.5 percent at end-2018 before gradually converging to around 5 percent over the medium term.
“Performance under the program has been good. Most quantitative performance criteria (QPC) for end-June were met, with the criteria on international reserves and the Reserve Bank of Malawi’s holdings of government securities significantly overperforming,” the international organization said.

The ECF is a lending arrangement that provides sustained program engagement over the medium to long term in case of protracted balance of payments problems.

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