Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha has identified foreign exchange shortages as the biggest challenge facing Malawi’s economy, warning that resolving forex constraints will be critical to stabilising markets and driving growth, even as Parliament passes the K10.97 trillion 2026/2027 National Budget.
“Forex shortages remain the elephant in the room. Until we address this, businesses will continue to struggle and markets will remain unstable,” Mwanamvekha said, speaking after the budget approval.
He noted that companies are struggling to import raw materials, while traders face difficulties accessing foreign exchange through formal banking systems, often resorting to parallel markets.
The minister assured that government is prioritising measures to ensure forex becomes readily available within banks to restore confidence and support economic activity.Parliament concluded deliberations on the 2026/2027 financial plan, approving a total of K10,978,491,310,711 after adopting all 59 votes in the Committee of Supply.
Lawmakers subjected various allocations to scrutiny, raising concerns over expenditure priorities, project implementation, and accountability across ministries, departments, and agencies.
One of the most debated allocations was K447.2 billion for the Road Fund Administration, where members pressed for clarity on stalled projects, funding reductions, and contractor payments.
Mwanamvekha, alongside Minister of Transport Jappie Mhango, assured the House that ongoing works will continue, with payments made progressively.
The agriculture sector secured K667.75 billion, with authorities indicating that government is engaging development partners to mobilise additional resources, while conducting audits to strengthen accountability in the use of funds.
Parliament also approved K115.9 billion for the Ministry of Foreign Affairs and International Cooperation without debate, while K167.2 billion was allocated to the Ministry of Finance after Mwanamvekha clarified that a disputed K124 billion provision relates to a donor-funded climate resilience programme, not vehicle procurement.
Other notable allocations included K85.8 billion for the rehabilitation of state residences, which sparked debate over spending priorities, and K300.88 billion for the Department of Human Resource Management and Development, where lawmakers questioned rising costs linked to civil service operations.
On social protection, Mwanamvekha confirmed that K17.5 billion has been set aside for housing for persons with albinism, alongside ongoing audits into broader public housing projects to address concerns of mismanagement.
The minister outlined fiscal reforms aimed at restoring economic stability, including a moratorium on recruitment and promotions to contain the wage bill, enhanced domestic revenue mobilisation, and tighter controls on public spending.
He emphasised the importance of prioritising ongoing high-impact projects over new initiatives, warning that unplanned commitments contribute to inefficiencies and escalating costs.
“We must ensure that every kwacha spent delivers measurable impact. Unchecked spending only deepens our fiscal challenges,” Mwanamvekha said.
Parliament adjourned and is expected to resume sitting on Wednesday, with lawmakers called upon to play an active oversight role to ensure public resources deliver intended benefits.
