The Economics Association of Malawi (Ecama), the Institute of Chartered Accountants in Malawi (Icam), and the Bankers Association of Malawi (Bam) yesterday gave positive ratings to the K10.987 trillion national budget delivered by Finance Minister Joseph Mwanamvekha.
Among other highlights, Mwanamvekha said real GDP growth is projected at 3.8 percent in 2026 and is expected to further strengthen to 4.9 percent in 2027.
“This growth will be supported by strategic investments in key productive sectors of Agriculture, Tourism, Mining, Manufacturing, and Small and Medium Enterprises. Special focus will be put on increased production and value addition, export diversification and import substitution,” he said.
Mwanamvekha said the budget is premised on macroeconomic assumptions that include end-period inflation estimated at 15 percent, nominal GDP of K31.5 trillion and a policy rate of 18 percent.
In her immediate reaction to the budget statement, Ecama President Bertha Bangala Chikadza said the budget offers hope.
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Among other observations, Chikadza said the minister has demonstrated the government’s commitment to reducing inflation and interest rates, while also growing the economy.
Madinga On his part, Bam president Phillip Madinga said he is impressed with the government’s intention to reduce inflation to around 15 percent and interest rates to approximately 18 percent.
Madinga said this, coupled with a slowdown in government borrowing, could help make affordable financing available to productive sectors of the economy.
Icam president Daniel Jere said the budget contains several positive elements.
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He noted that it is encouraging that over 30 percent of the budget has been allocated to development expenditure.
Jere also hailed the K5 billion Constituency Development Fund, saying it will help spur development in rural areas.
However, he was quick to call for strong governance structures to ensure the funds are not abused.
On taxation, Jere said Icam is not fully satisfied, as most of the recommendations they submitted during the pre-budget consultations were not incorporated.
“But we understand because as things stand at the moment, government needs money to meet its budgetary needs.
He commended the government for removing capital gains tax on shares for companies listed on the Malawi Stock Exchange. The tax has been replaced with a 2 percent final withholding tax.
He expressed hope that authorities will continue engaging Icam on ways to improve the tax environment going forward.
He commended the government for removing capital gains tax on shares for companies listed on the Malawi Stock Exchange. The tax has been replaced with a 2 percent final withholding tax.
He expressed hope that authorities will continue engaging Icam on ways to improve the tax environment going forward.