Reserve Bank of Malawi Deputy Governor Kisu Simwaka has cautioned that monetary policy alone will not resolve the country's persistently high inflation, which has remained above 20 percent for five years. According to Nyasa Times, Simwaka stated that Malawi must fix deep structural weaknesses, such as foreign exchange shortages, fiscal pressures, and climate vulnerability, to return inflation to single digits.
The Malawi Confederation of Chambers of Commerce and Industry released a new bulletin warning of continued economic pressure. Nation Online reports that while headline inflation is easing, the private sector group noted that elevated non-food inflation, rising business operations costs, and ongoing foreign exchange shortages continue to threaten business growth. The group urged the government to implement reforms focused on export diversification, value addition, and industrialisation to solve these economic bottlenecks.
Former Reserve Bank governor and UTM party president Dalitso Kabambe has also criticised the government over its foreign exchange management. Speaking to Times Television, Kabambe described the current forex policy as "state-sponsored criminality," according to Nyasa Times. He argued that the collapse in dollar supply and demand has fueled the expansion of parallel currency markets, adding that officials must urgently coordinate fiscal, exchange rate, and monetary policies.
Following pressure from civil society organisations regarding public spending, Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha has pledged to account for savings generated by recent government austerity measures. Nyasa Times reports that Mwanamvekha promised to present a full report during the Mid-Year Budget Review in Parliament this September, detailing the total amount saved and how those funds were allocated.