Africa-Press – Malawi. The Ministry of Finance has affirmed commitment to implementing what it rates as radical policies and interventions towards economic stability.
This comes after the International Monetary Fund (IMF) called on authorities to focus on policy interventions for sustained economic stability.
In a statement on Wednesday, the IMF Executive Board said stabilising the economy and implementing reforms to foster sustained and inclusive growth are critical to improving living conditions for Malawians.
It comes about two months after Malawi’s $175 million Extended Credit Facility programme with the IMF automatically terminated as no review had been completed over an 18-month period.
After the policy lapse, the government has been drawing a fresh strategy aimed at propelling the much sought after recovery from the myriad pangs the economy has faced in recent years, and to necessitate sustainable growth.
In an interview yesterday, Treasury spokesperson Williams Banda said Malawi has opportunities to spur growth in key sectors of agriculture tourism, mining and manufacturing (ATM+ M) and that government resources are systematically deployed to the sectors for growth.
He said the country has adopted a developmental state strategy where the government would be directly involved in facilitating industrial productivity and production.
“Some of the strategies are aimed at addressing external shocks, promoting macroeconomic stability.
“This implies that expenditures need to be aligned with the growth and development agenda. The government has decided to focus on the supply side of the economy as opposed to the demand side in order to grow the economy,” Banda said.
He said necessary investments are being targeted to the ATM+ M sectors.
According to Banda, the position has been focused already among reform areas to address the external and internal shocks.
Secretary to the Treasury Betchani Tchereni earlier said the trajectory is a game-changer for the Malawi economy, calling on other stakeholders to contribute to the drive.
“Solving an economic issue should really remove noise from the real problems. Economic kinds have realised that without a strong supply of physical goods, the country won’t heal.
“It is for this reason that the focus has shifted towards supply side economics,” Tchereni said.
Reserve Bank of Malawi (RBM) Governor McDonald Mafuta Mwale told a gathering at the RBM symposium on Tuesday that conversations were already underway with stakeholders including commercial banks to focus on funding the growth plan.
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