By Edwin Mauluka

The UK government and the Economics Association of Malawi (Ecama) have commended President Peter Mutharika for prioritising economic reforms and governance, while urging greater focus on key sectors such as energy and private sector development.

British High Commissioner to Malawi Leigh Stubblefield described the reform agenda outlined in the State of the Nation Address (SONA) as encouraging.

“It was encouraging to hear him set out bold reforms,” she said, noting the emphasis on private sector-led growth and opportunities in mining.

However, she said more attention was needed on hydropower, a key investment area for the UK.

“The UK is investing in energy and remains a long-standing partner to Malawi. We look forward to supporting the government as it delivers on these reforms,” she said, adding that Britain is already assisting with macro-fiscal management to reduce debt.

Stubblefield stressed that private sector challenges cannot be solved by aid alone, welcoming government’s commitment to creating an enabling business environment. She also noted progress in developing the mining sector, including plans linked to a sovereign wealth fund and ongoing technical support.

She further praised proposals on accountability and performance-based management, as well as decentralisation through initiatives such as the Constituency Development Fund (CDF). Drawing from UK-supported devolution in Kenya, she said well-managed decentralisation can improve service delivery and accountability.

In his address, Mutharika outlined progress in the energy sector, including rehabilitation works at Tedzani Hydro, commissioning of biomass and solar projects, and plans to increase generation capacity from 551 megawatts to over 1,000 megawatts by 2030.

On mining, he announced the suspension of licences, an audit of the registry, and a ban on raw mineral exports pending regulatory reforms. He also pledged to strengthen negotiation capacity for mining agreements and to develop the state-owned Malawi Mining Investment Company (MAMICO).

The president said plans for a sovereign wealth fund are at an advanced stage to ensure mining revenues benefit Malawians.

He also highlighted industrialisation efforts through Special Economic Zones in Magwero, Chigumula, Matindi and Dunduzu, alongside support for small businesses and cooperatives to boost local production and reduce imports.

Reacting to the SONA, Ecama president Bertha Bangara Chikadza said the address presented a realistic view of the economy and a clear recovery path.

“We note that the country is still recovering from significant economic challenges,” she said.

She described projected growth rates of 3.8 percent in 2026 and 4.9 percent in 2027 as modest but hopeful signs of recovery.

Bangara Chikadza also welcomed austerity measures, including reduced fuel entitlements and limits on travel, but urged sustained action to address food, fuel and foreign exchange shortages. She emphasised the need to boost local fertiliser production and expand export-oriented industries.

On tourism, she welcomed plans to expand Malawi Airlines’ routes and improve road infrastructure, stressing that poor transport networks remain a barrier to growth.

Mutharika said inflation is expected to ease to below 21 percent in 2026 from 28.7 percent in 2025, though foreign exchange reserves remain below desired levels.

He acknowledged that recovery will require difficult decisions but said early signs — such as stabilising commodity prices — indicate progress.

“I do what I promise and I do not promise what I cannot do,” he said, adding that his administration is implementing measures to boost foreign exchange, including regulatory reforms and increased gold production.

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