By The Forum
The Malawi Government has introduced a new National Economic Recovery Plan (NERP) aimed at stabilizing the economy, restoring investor confidence, and accelerating inclusive growth.
Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha announced the plan in Parliament on Friday while presenting the 2025–26 Mid-Year Budget Review Statement.
Mwanamvekha said the NERP responds to ongoing economic challenges, including acute shortages of foreign exchange and fuel, that continue to suppress key growth sectors such as manufacturing, wholesale and retail.
“This strategic framework outlines immediate, short-term and medium-term measures,” said Mwanamvekha. “The plan aligns with the Malawi 2063 First 10-Year Implementation Plan (MIP-1), which guides the nation toward wealth creation and self-reliance.”
According to the minister, the NERP prioritizes fiscal consolidation to create space for strategic investments in Agriculture, Tourism, Mining, Manufacturing, and Digitilisation. It also emphasizes investment in critical infrastructure, human capital development, and strengthened social protection systems, including improved access to essential pharmaceuticals.
On macroeconomic trends, Mwanamvekha said Malawi’s projected GDP growth for 2025 has been revised downward from 2.8 percent (May 2025 estimate) to 2.7 percent as of November 2025. However, growth is expected to rebound to 3.8 percent in 2026 and 4.9 percent in 2027, driven by improvements and investment in priority sectors.
He added that government will intensify export diversification and import substitution efforts to improve foreign exchange availability. Mwanamvekha acknowledged that Malawi is grappling with critically low foreign reserves — pressures compounded by the early expiration of the IMF’s Extended Credit Facility (ECF) in May 2025, alongside the withdrawal of donor support.
“Worse still, debt-service obligations and commitments on strategic commodities have exacerbated pressures on foreign reserves,” he said. “Another factor is the extravagant and careless behavior of the previous Malawi Congress Party (MCP) administration: excessive foreign travel, overstaffed embassies, acquisition of high-value assets, and poor absorption of donor-funded projects.”
