Africa-Press – Malawi. The International Monetary Fund announced the conclusion of its technical mission to Malawi without reaching an agreement on a new funding program, despite describing discussions with authorities as “constructive” and addressing priorities for economic reform and financial policies for the upcoming period.
The Fund clarified that the talks, which took place from June 9 to June 18, focused on a package of reforms and policies that could form the basis for a future agreement under the “Extended Credit Facility,” emphasizing that consultations will continue in the coming period.
Discussions included issues of fiscal discipline, public debt sustainability, and foreign exchange management, as Malawi faces a severe economic crisis characterized by high inflation and a chronic shortage of foreign currency needed to finance essential imports.
The government of Malawi is seeking a new support program from the IMF to help restore economic stability and attract additional external financing, after the previous program ended in May 2025 without completing its periodic review, depriving the country of most of the allocated funding.
The southeastern African nation is facing increasing financial pressures, with public debt exceeding 90% of gross domestic product, alongside declining foreign aid and ongoing shortages of foreign currency reserves.
The IMF had previously concluded a $175 million funding program in 2025 after the required reforms were not implemented, with the country receiving only an initial payment of $35 million. The government is currently seeking to reach a new agreement with the Fund to support efforts to restore financial and monetary stability.
