The Reserve Bank of Malawi has lowered its 2026 economic growth projection to 2.8 percent, a drop from the 3.8 percent forecast previously set by the Ministry of Finance, according to reports from Business Malawi. The revised outlook, detailed in the central bank's National Accounts report, indicates that while the economy is still expected to grow, the recovery will proceed at a slower pace than government officials originally anticipated.
In a separate effort to address the country's economic challenges, Parliament approved two financing bills on Wednesday authorizing the government to receive US$130 million, or about K229 billion, in grant funding from the World Bank's International Development Association, according to the Nyasa Times. Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha presented the bills, stating the funds will provide immediate foreign exchange support to the central bank while driving local development.
The approved financing includes US$80 million for the second phase of the Governance to Enable Service Delivery Project, which aims to improve financial management and local council performance, the Nyasa Times reports. The remaining US$50 million is allocated to the Transforming High-Potential Resilient Value Chains Project, an initiative designed to assist small and medium enterprises in improving product quality and expanding exports.
While lawmakers welcomed the financial injection, Shadow Minister of Finance Peter Dimba cautioned that the grants alone will not resolve Malawi's foreign exchange shortages, the Nyasa Times notes. During the parliamentary debate, Dimba urged the government to establish a one-stop export center to reduce bureaucratic delays, arguing that administrative barriers continue to hinder local firms from entering international markets.