MALAWI: World Bank Warns Malawi of Economic Challenges Ahead Of 2025 Elections

By Smile Hamilton, Malawi 

The World Bank has expressed concerns about Malawi’s economic stability, citing the country’s reliance on foreign aid and its tendency to overspend during election years.

In a recent report, the bank warned that Malawi’s economic woes could worsen if the government fails to implement prudent fiscal policies.

The report noted that during the 2019 fiscal year, Malawi’s government allocated a significant portion of its budget to non-essential expenditures, which contributed to the country’s economic challenges.

The bank warned that if this trend continues, Malawi’s economy could face severe difficulties, particularly in the lead-up to the 2025 elections.

According to the report, Malawi’s government has a tendency to increase spending during election years, with campaign-related expenditures accounting for approximately 74% of the country’s total budget in the years preceding elections.

This trend, the bank warned, could lead to economic instability and undermine the country’s long-term development prospects.

The World Bank’s Country Manager for Malawi, Jakob Engel, emphasized the need for the government to adopt prudent fiscal policies and adhere to the guidelines set by the International Monetary Fund (IMF) and the World Bank.

Engel noted that failure to do so could exacerbate Malawi’s economic challenges and undermine the country’s ability to achieve sustainable economic growth.

Despite these challenges, the report noted that Malawi has the potential to achieve economic stability and growth if the government implements sound fiscal policies and prioritizes essential expenditures.

The World Bank has urged the government to take a proactive approach to addressing the country’s economic challenges and to ensure that the 2025 elections do not compromise Malawi’s long-term development prospects.

In response to the report, Malawi’s Minister of Mining, Ken Zikhale Ng’oma, acknowledged the government’s commitment to implementing prudent fiscal policies and prioritizing essential expenditures.

Ng’oma assured that the government would take the World Bank’s recommendations seriously and work towards achieving economic stability and growth.