The donor-dependent Southern African nation has struggled to rein in inflation, which currently stands at 26% year-on-year and has been above 20% since the middle of 2022.

Mutharika returned to power in a September election on promises of reviving Malawi’s economic fortunes after years of crisis.

Crippling foreign exchange shortages have disrupted imports of fuel, fertiliser and other essential goods. Mutharika told lawmakers the goal was to lift economic growth to 3.8% in 2026 and to 4.9% in 2027, up from the 2.7% rate he said his administration had inherited.

Malawi is trying to negotiate a new support programme from the International Monetary Fund, restructure its debt and boost dwindling international reserves.

–Reuters–