The International Monetary Fund (IMF) has said Malawi needs to be resilient against climate change shocks and press ahead with governance reforms among other things, if it is to attain its aspiration of becoming a middle-income economy.
The call comes as Malawi is crafting a successor plan to Vision 2020, which many agree, failed to meet objectives.
In a response to an emailed questionnaire, IMF Country.
Representative, Farayi Gwenhamo, said in formulating the next development blueprint, local authorities need to find solutions to key constraints to growth.
“The growth in Gross National Income (GNI) per capita has fallen far short of the level needed to achieve the Vision 2020 aspiration to become a middle-income country by 2020,” Gwenhamo said.
Figures provided show that GNI per capita, at around $360 in 2018 is far below the threshold needed to become a middle income country.
She said going forward, maintenance of macroeconomic stability will remain important for the country.
She added that the Vision 2020 aspirations remain relevant and requires radical review.
The Vision 2020 envisaged a transformed Malawi from poverty to a middle-income economy by the end of next year.
National Planning Commission Director General, Thomas Munthali, recently said going forward, Malawi needs a new narrative – from poverty reduction to ‘spearheading wealth creation for all’ if it is to sustainably grow the economy.
Munthali said the new narrative should be beyond survival basics to higher ‘wealth’ levels.
He said with some minor tweaks, Vision 2020 remains relevant and will remain so for generations to come.
He said the commission, hence, proposes to have a long-term development plan based on a defined development philosophy (mixed economy) that will operationalise the country’s agreed vision.
Today’s top business story: Top Commercial Banks In Malawi