It was introduced two years ago to support the country’s efforts toward economic stability in the lead-up to the September elections.  
The decision comes as a significant financial setback for Malawi, which has relied on the ECF to stabilise external resources and manage its macroeconomic framework.

Chief Economist at Don Consultancy Group, Chifi Mhago, explained the intended role of the programme in strengthening the country’s economic foundations.  

“Well, I think the IMF support of $5 million was negotiated last year to bolster Malawi’s macroeconomic framework, stabilising external resources, revenue streams, and forex management,” Mhago stated in an interview with Channel Africa.  

--ChannelAfrica--