IMF wants Malawi to secure economic gains
The International Monetary Fund (IMF) says it looks forward to seeing Malawi consolidate her recent macroeconomic gains while ensuring a favourable investment climate.
IMF country representative Ruby Randall said this in an interview on Friday when asked to give an update on the fund’s mission which arrived in the country last Tuesday.
Led by the IMF mission chief Tsidi Tsikata, the team is here to conduct a third review under the IMF-supported programme, the Extended Credit Facility (ECF), for a period of two weeks.
Said Randall: “… [We] seek to reach an agreement on forward-looking policies that would help the authorities to consolidate recent macroeconomic gains.”
In recent times, Malawi’s economy has witnessed a sharp U-turn, characterised by a strong gain in the value of the local currency, the kwacha, against the dollar buoyed by the relative increased availability of foreign currency on the market, widely attributed to the inflow of tobacco dollars.
Among other gains, the economy, which was once on the brink of collapse during the second term of president Bingu wa Mutharika’s rule on account of poor governance and economic policies, has also seen stable supplies of fuel from the international market which has propelled business confidence across the country.
Randall stated that the fund also wants to foster an enabling environment conducive to investment, inclusive growth as well as poverty reduction.
“As part of its work, the team will assess performance under the program against established quantitative targets and structural benchmarks for end-March 2013,”she added.
She said in addition to meeting with senior government officials, the team will consult widely with various key stakeholders, including Members of Parliament (MPs), trade unions, civil society, representatives of the business and banking communities and with development partners.
In December last year, the IMF released $20 million to Malawi under the ECF.
In April this year, the fund’s executive board also approved $19.6 million at the completion of the second review of Malawi’s economic performance.
Earlier this year, President Joyce Banda said the IMF now has confidence in the reform programme that her government is implementing.
