Malawi’s government aims to reduce annual inflation to below 21% this year, President Peter Mutharika told parliament on Friday, according to Reuters report.
The donor-dependent Southern African nation has struggled to control inflation, which currently stands at 26% year-on-year and has remained above 20% since mid-2022.
Mutharika, who returned to power in a September election, promised to revive Malawi’s economic fortunes after years of crisis. Severe foreign exchange shortages have disrupted imports of fuel, fertiliser, and other essential goods.
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Mutharika told lawmakers that the goal is to raise economic growth to 3.8% in 2026 and 4.9% in 2027, up from the 2.7% growth rate his administration inherited.
Malawi is seeking a new support programme from the International Monetary Fund, restructuring its debt, and boosting its dwindling international reserves.
Mutharika said foreign exchange reserves remain below three months’ import cover, a level widely recommended as a buffer against potential shocks.
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Image Credit: Voice of Nigeria
