Update: Parliament has formally approved the 2026/2027 national budget, set at K10.978 trillion (approximately $6.8 billion), according to local media reports. The budget directs the largest share to the agriculture sector with an allocation of K971.3 billion, followed by K558.07 billion for health and sanitation, K447.1 billion for roads, and K316.6 billion for education. The financial plan was passed despite ongoing economic difficulties, including high inflation and foreign exchange shortages. The government projects a 3.8 percent economic growth rate for 2026, while the International Monetary Fund estimated a 2.7 percent growth rate for 2025.
In infrastructure news, the Reserve Bank of Malawi (RBM) has stalled foreign currency payments to contractors rehabilitating the 302-kilometre M1 road section between Kamuzu International Airport and Rumphi due to unsubmitted payment certificates, Nation Online reports. RBM spokesperson Boston Maliketi Banda confirmed the central bank received Treasury instructions to pay the contractors in euros but cannot proceed without the proper documentation. Following the delayed settlement of over 5.8 million euros across three project lots, contractors have withdrawn their services, risking delays to the European Investment Bank-funded road project.
Meanwhile, the RBM is urging the country's savings and credit cooperatives (Saccos) to adopt digital financial services to improve efficiency and reach younger customers, according to Nation Online. Speaking at the Malawi Police Sacco's 11th Annual General Meeting in Lilongwe, RBM director of capital markets and microfinance supervision Khumbo Mtalika emphasized the need for digital upgrades in the sector. The push for digital adoption comes as the Malawi Police Sacco reported financial growth, with its total assets increasing from K7.2 billion to K10.8 billion over the past financial year.