{
  "title": "IMF Staff Concludes Visit to Malawi to Discuss a Program under the Extended Credit Facility Arrangement",
  "publication": "IMF News, October 6, 2026",
  "sourceUrl": "https://www.imf.org/en/news/articles/2026/10/06/pr26323-imf-staff-concludes-visit-to-malawi-extended-credit-facility-arrangement",
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  "summary": "The authorities have been implementing strong reforms to tighten fiscal discipline, reduce the public debt burden, and improve how markets function. These reforms provide a good foundation for an IMF-supported program",
  "publishDate": "2026-10-06",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Press Release No. 26/323, IMF Press center, October 6, 2026. - A team from the International Monetary Fund (IMF), led by Justin Tyson, Mission Chief for Malawi, held meetings in Lilongwe from September 22 to October 6, 2026 to discuss a program under the Extended Credit Facility (ECF) arrangement. - End-of-Mission press releases convey preliminary findings after a visit; the views are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. - Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision."
    },
    {
      "heading": "Mission activities and meetings",
      "content": "- Mission dates: September 22 to October 6, 2026. - Location: Lilongwe. - Mission leader: Justin Tyson, Mission Chief for Malawi. - Meetings held with: - Minister of Finance, Economic Planning and Decentralization Hon. Joseph Mwanamvekha; - Governor of the Reserve Bank of Malawi Dr. George Partridge; - Secretary to the Treasury Dr. Cliff Chiunda; - Deputy Governor of the Reserve Bank of Malawi Mr. Henry Mathanga; - other senior government officials; - representatives of development partners."
    },
    {
      "heading": "Preliminary findings",
      "content": "- \"The authorities have been implementing strong reforms to tighten fiscal discipline, reduce the public debt burden, and improve how markets function. These reforms provide a good foundation for an IMF-supported program.\" - \"The authorities have made progress on major reforms to restore macroeconomic stability under the National Economic Recovery Plan (NERP).\" - In line with the 2026/27 budget targets: - \"domestic revenue is increasing, and expenditure has been tightly controlled.\" - \"It will be important for execution of the budget to remain on track.\" - Policy actions taken: - \"The authorities have also taken decisive actions, such as fuel and sugar pricing reforms, which helped improve market functioning.\" - \"Discussions are advanced on measures to reduce the burden of high public debt.\" - Inflation status: \"Inflation has been moderating in recent months, supported by low food inflation, though non-food inflation remains high.\""
    },
    {
      "heading": "Macroeconomic outlook and risks",
      "content": "- Growth drivers and challenges: - \"Malawi’s economy is navigating a challenging environment.\" - Growth affected by climate shocks and a decline in demand for tobacco, the country’s largest export item. - \"Terms-of-trade shocks since the beginning of the war in the Middle East are an added strain.\" - Outlook and risks: - \"While growth is expected to recover in the medium term, risks to the outlook are tilted towards the downside.\" - Short-run risk: \"adverse weather shocks caused by the El Niño event could impact agricultural production and intensify food insecurity across the region.\""
    },
    {
      "heading": "ECF-supported program: objectives and policy package",
      "content": "- Purpose: \"A program under the Extended Credit Facility (ECF) arrangement would support the objectives of macroeconomic stabilization and inclusive growth.\" - Core components the ECF would include: - policies to sustain fiscal consolidation while protecting social spending; - strengthen monetary policy; - preserve financial stability; - improve governance. - Design progress: - \"The authorities and the IMF team have made considerable progress in designing the comprehensive package of policies and reforms that could underpin an ECF-supported program.\" - \"Facilitated by good collaboration and the positive reform path, discussions will continue to finalize such a package.\" - Intended aims of the comprehensive package: - \"sustain the medium-term fiscal consolidation while protecting social spending for vulnerable households\"; - \"strengthen and tighten monetary policy\"; - \"preserve financial sector stability\"; - \"remove market distortions to promote growth and productivity\"; - \"Strengthening governance and structural reforms will be key to macroeconomic stabilization.\" - Incorporation: the package would \"incorporate home-grown initiatives under the NERP.\""
    },
    {
      "heading": "Next steps and closing statement",
      "content": "- Discussions will continue to finalize the policy package that could underpin an ECF-supported program. - Mission statement closing: \"The team is grateful to the authorities for the candid and constructive discussions and looks forward to finalizing the policy package.\" - Staff follow-up: staff will prepare a report based on preliminary findings for management approval and potential presentation to the IMF's Executive Board."
    }
  ],
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