Malawi faces reform test over governance report

Revitalizing Malawi’s Economy: Navigating Governance Reforms for Sustainable Growth

Post was last updated: August 15, 2025

Key Business Points

  • The International Monetary Fund (IMF) is urging the Malawi Government to publish its 2024 Governance Diagnostic Assessment to promote transparency and restore donor confidence.
  • Transparency and good governance are crucial for safeguarding public trust, reinforcing economic stability, and attracting investors, as highlighted by experts such as Willy Kambwandira and Velli Nyirongo.
  • Timely release of the report is essential, especially during election years, to prevent undermining institutional integrity and eroding public trust, with potential adverse implications for the country’s macroeconomic stability and investor confidence.

The International Monetary Fund (IMF) has emphasized the importance of transparency and good governance in Malawi, stressing that the publication of the 2024 Governance Diagnostic Assessment is critical for restoring donor confidence and promoting economic stability. The report, which assesses the strength of a country’s institutions, public finance management systems, and anti-corruption measures, serves as a policy guide for reforms and a signal to international investors and development partners about the country’s governance credibility.

According to the IMF, the 2024 assessment identifies persistent governance gaps in public procurement, State-owned enterprise oversight, and anti-corruption enforcement. Experts such as Willy Kambwandira, a governance expert, and Velli Nyirongo, a Scotland-based Malawian economist, have warned that delaying the publication of the report could have adverse implications for the country’s macroeconomic stability and investor confidence. Kambwandira noted that transparency governance assessments act as a deterrent to corrupt practices, and their absence may embolden unethical behavior.

Nyirongo cautioned that withholding the report may signal uncertainty to investors and lenders, undermining efforts to stabilize an economy already grappling with elevated inflation, fiscal deficits, and foreign exchange shortages. The IMF has linked governance transparency directly to economic resilience, noting that corruption scandals over the past decade have eroded public trust. While acknowledging some reforms, such as removing the requirement for the Anti-Corruption Bureau to seek prosecutorial consent for arrests, the IMF warns that significant gaps remain in oversight and enforcement.

The timely release of the Governance Diagnostic Assessment has become a litmus test of Malawi’s commitment to reform, especially with donor inflows declining and elections approaching. As Kambwandira emphasized, "transparency governance assessments act as a deterrent to corrupt practices by exposing inefficiencies and malfeasance. Their absence may embolden unethical behavior." The Malawi Government should prioritize transparency and good governance to promote economic stability and attract investors, as this is essential for the country’s economic growth and development. Zinthu zina zikuyenda bwino, or "things will go well," if the government takes bold steps to address governance gaps and promote transparency, which will help to boost investor confidence and stimulate economic growth.

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Vanessa Banda
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