* The termination of this program is expected to negatively affect Malawi’s international credit rating which may worsen the unavailability of forex
* Thus “Malawians should brace themselves for a tough time ahead as this development seems to be the last nail of Chakwera’s administration
By Duncan Mlanjira
President Lazarus Chakwera’s administration “is now in self inflicting economic mood ahead of the September 16 general elections” following the suspension of the extended credit facility (ECF) by the International Monetary Fund (IMF) — opines an economic think tank on a HardTalkers forum.
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He observes that “the termination of this program is expected to negatively affect Malawi’s international credit rating which may worsen the unavailability of forex” — thus “Malawians should brace themselves for a tough time ahead as this development seems to be the last nail of Chakwera’s administration”.
Another school of thought on the same Hard Talkers forum of economic think tanks observed that the decision marks a turning point in the country’s economic journey, saying: “The era of relying on aid is fast coming to an end and corruption in Malawi has reached crisis point — let’s build an economy that works for our people and unlocks the full potential of our country.
“In response, we have officially launched the Business First Plan; https://jumpshare.com/s/8C7E09hqVOWJmgujRYMw — a bold and strategic vision to fix our economy and build resilience after September 16, 2025.
“This plan does not shy away from the hard truth of our situation. Instead, it embraces a future rooted in investment, trade, productivity and jobs.”
Another said the country needs “to join most of Africa today thinking more about trade and exports besides value addition — not over relying on donor aid. Maybe it’s also time to consider taxing more people in Africa than over relying on foreign taxpayers which to be honest isn’t fair — they also work hard to earn money.
“Malawi’s decision to let the IMF ECF lapse can also be seen as a rare and decisive act of neoliberal rulebook disobedience. It could mark a shift away from the rigid fiscal constraints imposed by international financial institutions —- a moment where the state asserts sovereignty over its economic priorities. This kind of defiance undoubtedly challenges decades of austerity-driven governance.”
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More debate followed with another think tank, saying the defiance approach is an argument pushed by many critics of the Bretten Woods solutions and approaches: “It has been there for decades — dating back to the 1950s ECLA school of thought.
“Some South-east Asian countries have tried the ‘defiance’ approach and have succeeded. Bingu tried the ‘0-deficit’ approach, but with mixed fortunes. The Joyce Banda government abandoned it and pushed for an ERP that seems never to have been implemented.
“The question is, where does Malawi go from here? We want to hear REAL implementable solutions, not rants, whining, regrets, and the usual liberal and neo-liberal theoretical rhetorics.
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“This could be time for courage and hard choices, not weak-hearted relief therapies and bandaid solutions. In my view, it is strange that Malawi kept this meagre US$175 million ECF that keeps destroying the economy.
“Real solution is the control of resources that generate income, e.g mineral deals-reset to benefit the country, spending only what is generated, reorganise monetary and fiscal measures, get CBA, get genuine views from almost everyone synthesise and make a prudent choice.
“The usual decision-making has taken us to nowhere this far,” said the economists, adding that “most importantly”, they is a need to try having a government “that includes all parties as equals”.
