World Bank says Malawi has now taken bold steps to stabilise the economy despite slow growth in 2023, attributing the success to macroeconomic environment and sustained structural reforms.
This is contained in the 18th Malawi Economic Monitor (MEM) which the bank launched in Blantyre on Tuesday, dubbed ‘Health Watersheds for a Strong Economy’.
The MEM provides an analysis of economic and structural issues in Malawi which intends to foster better informed policy analysis and debate, regarding the key challenges that the country faces in its endeavour to achieve inclusive and sustainable economic growth.
The report, which estimated Malawi economy to have grown by 1.6 percent in 2023, says the country’s economy will grow by 3 percent in 2024 due to a modest easing of global commodity prices, moderate improvement in agricultural production, and increased output bolstered by improved foreign exchange inflows, among others.
Speaking during the launch, Country Manager for World Bank in Malawi, Hugh Riddell, said fiscal consolidation measures and public financial management reforms supported by extended credit facility from International Monetary Fund and the new World Bank development policy operation are critical for Malawi to regain long term macroeconomic stability and fiscal sustainability.
“Overall World Bank is seeing tremendous improvements in all programmes that the bank is funding like Shire Valley Transformation Programme, among others, which is a huge win for Malawi in particular.
“Our report has focused on watersheds because they play a crucial role in sustaining the ecosystem, biodiversity, wild, agriculture, and human population by serving as the natural resource base for all forms of life.
“It also examines the opportunities to redirect funds currently allocated for agricultural and forestry input towards a more explicit emphasis on watersheds. Further it discusses options for financing interventions aimed at rehabilitating the country’s degraded watersheds among others,” said Riddel.
On his part, Minister of Water and Sanitation Abida Mia commended the World Bank for its meaningful report, saying some of the recommendations can foster an environment leading to further positive steps in as far as developments are concerned.
Mia said the Chakwera-led administration is geared to reverse land degradation through several interventions like Malawi Watershed Services Improvement Project (MWASIP), which is being funded by World Bank.
She said: “By 2030 Malawi plans to restore 4.4 million hectares of land; as you know through MWASIP and other programmes farmers are aiming at increasing the adoption of sustainable landscape management practices and improve watershed services.”
Meanwhile, Secretary to the Treasury Betchani Tchereni said Malawi will continue to take bold steps so that the country’s economy should be stabilised as World Bank has indicated.
“We are currently restructuring foreign debts and ensuring that the country is producing and exporting more,” he said.
Reported by Tikondane Vega
