Fiscal deficit over shadows surge in revenue—Ecama

Driving Malawi’s Prosperity: Ecama and MCCCI Outline Key Strategies for Economic Growth

Post was last updated: October 8, 2025

Key Business Points

  • Macroeconomic stability is crucial for Malawi’s business community, and the new government should prioritize measures to achieve it, including stabilizing the exchange rate and rebuilding fiscal space.
  • Policy consistency is essential for businesses and investors, and the government should ensure predictability by implementing a well-coordinated policy approach.
  • Diversifying exports and adding value to agricultural products can help boost foreign exchange earnings and promote long-term growth, according to the Economics Association of Malawi (Ecama) and the Malawi Confederation of Chambers of Commerce and Industry (MCCCI).

The Economics Association of Malawi (Ecama) and the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) have urged the new Democratic Progressive Party (DPP) administration to prioritize food security, stabilize the exchange rate, rebuild fiscal space, and ensure policy consistency to achieve macroeconomic stability. This advice comes at a time when President Peter Mutharika has just formed a new government and announced a partial Cabinet, with Joseph Mwanamvekha as Minister of Finance, Economic Planning and Development. The MCCCI recently lamented the worsening business environment between July and September, which further weakened the local investment climate and affected foreign direct investment.

According to Ecama president Bertha Bangara-Chikadza, the government should prioritize measures that strengthen food security, stabilize the exchange rate, and rebuild fiscal space through prudent resource management and debt restructuring. She emphasized that policy consistency will be critical in ensuring predictability for businesses and investors. Bangara-Chikadza also suggested that the government should diversify exports beyond traditional commodities and add value to agricultural products, which is key in boosting foreign exchange earnings. As she put it, "mphamvu ya chikwanja" (the power of diversification) can help Malawi’s economy grow.

In a separate interview, MCCCI CEO Daisy Kambalame said that restoring macroeconomic stability will require a coordinated policy approach focused on inflation control, fiscal discipline, and export diversification. She warned that without decisive reforms, Malawi risks backsliding into deeper instability. Kambalame emphasized that the new government’s ability to deliver both short-term stabilization and long-term structural change will be critical to the country’s economic trajectory heading into 2026. As Kambalame noted, "tsogolo la Malawi" (Malawi’s future) depends on the government’s ability to implement effective economic policies.

Malawi Union of Micro, Small and Medium Enterprises president James Chiutsi also emphasized the need for the government to prioritize food price stability, which would stabilize inflation and interest rates and boost production. In his inaugural speech, President Mutharika said his government’s priority will be on food security, fertiliser procurement, and stabilizing fuel availability in the country. As Mutharika put it, "chakudya cha boma" (food security) is a top priority for his administration. Overall, the business community in Malawi is looking to the new government to implement policies that will promote macroeconomic stability, policy consistency, and export diversification, which are essential for promoting long-term growth and development.

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Vanessa Banda
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