Mwanamvekha Highlights Forex Crisis as Key Obstacle to Malawi’s Economic Recovery

Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha has identified foreign exchange shortages as one of the biggest challenges undermining Malawi’s economic recovery efforts, as the government prepares to roll out the National Economic Recovery Plan (NERP).

Speaking on Wednesday during a NERP consultative forum in Lilongwe, Mwanamvekha said the country’s economic difficulties require urgent and collective action from both the public and private sectors.

The minister highlighted several factors affecting economic stability, including revenue mobilisation, public debt, forex shortages, money supply, inflation, and the high cost of borrowing.

He called on the private sector to take a leading role in stimulating economic growth by accessing commercial bank financing to expand businesses and create employment opportunities.

Describing the foreign exchange crisis as “the elephant in the room,” Mwanamvekha assured Malawians that government is implementing measures to address the problem, noting that progress in this area would have a positive impact on other sectors of the economy.

He expressed concern over rising youth unemployment, saying nearly 500,000 young people enter the labour market annually but struggle to secure jobs or access credit due to the current economic environment.

Mwanamvekha further observed that Malawi’s population growth is outpacing economic growth, placing increasing pressure on limited national resources and contributing to higher poverty levels.

Acknowledging the hardships citizens are facing, the minister said government understands the challenges and remains committed to finding lasting solutions.

“We are all suffering, and we are not happy that Malawians are suffering. But we need to tackle this head-on. I can assure you that in a few months, Malawians will understand why we took these steps, and they will benefit,” he said.

He explained that recent increases in levies on selected goods and services were introduced to help finance the procurement of medicines, payment of civil servants’ salaries, and implementation of development projects through the Constituency Development Fund (CDF).

Mwanamvekha stressed that the success of the NERP will depend on broad participation from all stakeholders, including the private sector, civil society, and opposition parties, emphasizing that economic recovery is a national responsibility.

He also said the current administration is focused on addressing structural economic challenges inherited from the previous government.

Speaking at the same forum, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Chief Executive Officer Daisy Kambalame welcomed the government’s focus on critical economic issues and said the framework presented under the NERP provides clarity and confidence to the private sector.

Kambalame said businesses are ready to mobilise resources in support of the recovery plan and expect strong accountability mechanisms to ensure effective implementation.

The final NERP document is expected to be launched in July, with stakeholders invited to submit comments and recommendations before the June 15 deadline.

Among organisations represented at the forum were the Bankers Association of Malawi, MCCCI, the Economic Association of Malawi, the University of Malawi, the National Advocacy Platform, and the Malawi Economic Justice Network.