Chief Executive Phillip Madinga
* This new government administration is walking the talk. At Standard Bank, we’re ready to support the government’s initiatives to drive economic growth and development
* We believe that with prudent financial management and strategic investments, Malawi can overcome its economic challenges and achieve sustainable growth
By Duncan Mlanjira
Malawi Stock Exchange-listed Standard Bank Plc has expressed optimism with the 2026/27 National Budget policy statement, which Minister Finance, Economic Planning & Development, Joseph Mwanamvekha presented in Parliament yesterday, saying it reflects government’s commitment to austerity and economic recovery efforts.
Chief Executive Phillip Madinga said the bank is ready to support the government realize its recovery targets as outlined in the fiscal plan, saying: “This new government and administration is walking the talk. At Standard Bank, we’re ready to support the government’s initiatives to drive economic growth and development.
“We believe that with prudent financial management and strategic investments, Malawi can overcome its economic challenges and achieve sustainable growth.
“We’re committed to working with the government and other stakeholders to unlock opportunities and build a stronger economy for all Malawians,” said the Chief Executive of the Standard Bank Plc — which is majority owned by Africa’s largest bank by assets, the Standard Bank Group.
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The 2026/27 National Budget is Mwanamvekha’s first after the September 16 elections which brought the DPP back in government, and touting it as a return to proven economic stewardship.
The budget outlines a number of ambitious targets which if implemented can consolidate economic stabilisation efforts and reignite growth.
The budget projects GDP to grow from 2.7% in 2025 to 3.8% in 2026 and 4.9% by 2027: “This growth will be supported by strategic investments in key productive sectors of agriculture, tourism, mining, manufacturing, and small & medium enterprises.
“Special focus will be put on increased production and value addition, export diversification and import substitution,” said Mwanamvekha in his presentation in Parliament, adding that the budget targets an interest rate band of 18%, down from the current 26% signalling strong intent by the government to curb expenditure and maintain borrowing only at reduced yield curves.
The budget targets a reduced inflation threshold of 15%, although this out turn could be dictated by agriculture production and weather.
According to the budget, this fiscal year’s budget deficit is projected to reach 11.9% of GDP, but the government wants to narrow it to about 9% next year.
Of the MK23.9 trillion (US$13.92 billion) public debt stock as of December last year, roughly 65% was domestic and the Finance Minister added that the government is seeking to restructure its domestic and external debt to create more fiscal space.
On inflation, Mwanamveka reported that it rose to 32.3% in 2024, has since declined to 28.5% and is expected to fall further to 24%; https://www.maraviexpress.com/inflation-down-from-32-3-in-2024-to-28-5-and-expected-to-fall-further-to-24/.
He also said the inflation is projected to reach 23% by the end of this year, signalling improved macroeconomic stability after recording significant sectoral gains across the economy.
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