Malawi - Towards Economic Recovery
On February the 9th, 2024, His Excellency the President Dr Lazarus Chakwera delivered his State of Nation Address (SONA) to mark the launch of the 2024/25 Budget Session of Parliament.
As one of the key economic stakeholders and major player in the financial sector in Malawi, Standard Bank Plc releases the following statement in noting some of the positive steps Government is taking towards economic recovery and putting Malawi on a sustainable growth path.
- Progress on some areas of economic reforms
Standard Bank commends Government for heeding calls for urgent reform and implementation in some aspects of our national economy that we consider as critical in helping to catalyze growth and economic recovery.
1. Removal of travel VISA restrictions
The decision will help boost tourist arrivals from key source markets of Europe, the America’s, Asia, and rest of Africa. In the medium to long-term, increasing tourist and business arrivals to Malawi helps boost inflows of much-needed foreign currency, and opens Malawi as an ideal Foreign Direct Investment destination. Easing travel restrictions for developed countries also sends strong intent of the government’s commitment and readiness to do business with major global investors seeking to move their capital to selected African markets endowed in natural resources and agriculture. Malawi offers this potential.
2. Mining Sector and Mining Development Agreements (MDAs)
We welcome the Government’s renewed focus on mining development. The sector is key to government’s recently adopted Agriculture, Tourism & Mining (ATM) strategy, as mining seeks to complement the role that the agriculture sector has played over many decades as the key earner of foreign exchange and growth for Malawi. Mining can become one of the alternative economic growth drivers for the country. Mining and Tourism form part of the ATM strategy as they offer alternative sources of foreign currency generation and receipts by maximizing on Malawi’s intrinsic natural endowments and creating a conducive environment for their exploitation. The signing of the Mining Development Agreements (MDAs) with Kanyika Mines signals the government’s commitment to the sector. At the same time, the government’s initiative to create regulatory organs for the sector is one we will continue to watch keenly. We look forward to the conclusion and signing of the other remaining Mining Development Agreements that are currently under negotiation.
CONCLUSION
We applaud the government’s commitment to move with implementation of some of the economic reform proposals tabled during the Standard Bank-hosted Leadership Round Table series. The Leadership Round Table forums are Standard Bank’s initiative that creates a platform for dialogue on economic reform by government, its agencies, private sector and donors. On December 12, 2024, the second Leadership Round Table forum took place at the Bingu International Conference Centre (BICC) in Lilongwe at which the Visa and Mining development issues were among five key areas of reform tabled by the stakeholders.
Whilst we applaud these positive steps and developments, as a key partner for Malawi’s growth, we implore on the President and Government to reinforce an effective performance management system for all Ministries, Departments & Agencies (MDAs) and implement an accountability framework where performance of all MDA personnel up to Ministerial level is continuously assessed publicly. We believe this would complement current efforts by Government to put economy on a sustainable recovery and growth path.
At the next Business Leadership Round Table, to be convened soon, Standard Bank Plc and its partners from Government, Private sector, Development Partners, and the donor community will continue to review progress.
We Believe in Malawi, that is why at Standard Bank we affirm that Malawi is Our Home, We Drive Her Growth.
Chief Executive
Phillip Madinga