Malawi - Public Finance Review : Restoring Stability, Rebuilding Trust

Overview & Synopsis

Malawi stands at a critical inflection point in its pursuit of macroeconomic stability and fiscal sustainability. Public finances are under severe strain, marked by persistent fiscal and current account deficits, a highly vulnerable debt profile, and declining external support, making the cost of policy inaction increasingly untenable. Rising fiscal risks, compounded by global uncertainty, recurrent climatic shocks, falling aid flows, and election-related overspending, underscore the urgency of reform. This public finance review provides a strategic assessment of challenges and opportunities in public expenditure management, revenue mobilization, SOE governance, and the emerging mining sector. It outlines a reform agenda centered on fiscal consolidation through more efficient spending, enhanced revenue mobilization, and improved governance, aiming to restore stability and unlock long-term growth.