The United Transformation Movement (UTM) President and former Reserve Bank of Malawi Governor Dalitso Kabambe has cautioned the Malawi Government against viewing a new International Monetary Fund (IMF) programme as a breakthrough in itself.
Instead, he said, the programme should be regarded as a test of discipline, leadership, and effective implementation ahead of an IMF mission scheduled to visit the country from June 9 to 18.
Kabambe said Malawi’s repeated engagement with IMF-supported Extended Credit Facility (ECF) programmes has exposed a persistent weakness in implementation, warning that the country risks repeating past cycles if reforms are not followed through with seriousness and consistency.
He said while the government’s engagement with the IMF may be necessary for stabilising the economy, it should not be reduced to a political milestone or public relations exercise.
“Economic stabilisation cannot come at the expense of vulnerable households. Malawi needs a serious home-grown recovery strategy supported by international partners, not an IMF programme treated as a political announcement or public relations exercise,” Kabambe said.
He added that the IMF could only support reforms, not replace domestic leadership and execution, stressing that Malawi’s core challenge has been sustaining policy discipline beyond the negotiation table.
“The IMF can support reform, but it cannot substitute leadership, discipline, competence, and execution. What Malawi needs now is not another cycle of promises, but credible delivery, restored confidence, and a serious long-term strategy for economic transformation,” he said.
The IMF mission is expected to engage authorities on the possibility of a new Extended Credit Facility arrangement after the previous four-year $175 million programme expired in May 2025 without completing a review.
Malawi continues to grapple with high inflation, foreign exchange shortages, and rising public debt, conditions that previously informed IMF-backed reforms aimed at restoring fiscal discipline, stabilising the currency, and rebuilding economic buffers.
