Africa-Press – Malawi. Some of the country’s top economic stakeholders have demanded urgency in fiscal consolidation, describing it as unavoidable.
The call is contained in a White Paper released on Thursday by Standard Bank plc following a multi-stakeholder roundtable dialogue held in Lilongwe under the theme ‘Towards Economic Recovery and Growth by Bringing the Agriculture, Tourism, Mining, and Manufacturing (ATMM) Strategy to Life’.
Simply put, fiscal consolidation describes government policy intended to reduce deficits and the accumulation of debt.
The call comes at a time the country’s public debt stands at K16.1 trillion.
During the dialogue, many stakeholders, including international donor partners, acknowledged that Malawi’s economy was in a state of crisis.
According to the stakeholders, fiscal consolidation could be done without hurting growth or the most vulnerable.
“This can also be done without impacting either short-term economic growth or the provision of critical services. It just takes commitment and some tough choices, but it is doable within three years, in time for the next campaigning period.
“There is a need for a detailed review of the country’s public finance which would lay a structured path to this end,” the paper reads.
The stakeholders further noted that achieving Malawi (MW) 2063 targets requires gross domestic product (GDP) growth above 6 percent, demanding immediate reforms, financing innovation and strong cross-sector coordination.
The 3rd Edition of the Standard Bank-facilitated Growth Conversations forum took place on June 3, 2025 at Bingu wa Mutharika International Convention Centre in Lilongwe and focused on how Malawi can fully leverage its potential in ATMM to catalyse economic recovery and drive sustainable growth.
The 2025 edition attracted high-level participation from the Malawi Government, its regulatory institutions, the private sector, multilateral institutions and diplomatic representatives, including the United Nations in Malawi, and the Ambassador and High Commissioner from Germany and the United Kingdom, respectively.
The forum noted that as shocks to Malawi’s economy increase, it would be critical to build more shock absorbers into the economy.
They observed that the future would likely contain more frequent and more severe shocks.
Standard Bank Chief Executive Phillip Madinga reiterated the bank’s resolve to continue facilitating dialogue under the Growth Conversations platform, in line with its purpose of driving Malawi’s economic development.
“These conversations are a catalyst for action, as what we agree in this forum gets followed through with tangible results,” he said.
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