Reserve Bank of Malawi has reduced the policy rate by 200 basis points from 26% to 24%, with the intention of easing inflation pressures while maintaining a tight monetary stance.&nbsp;

Reserve Bank of Malawi reduces Policy Rate to 24%

Set the monetary policy rate at a level consistent with positive real interest rates to tame inflation.

In a bid to further reduce domestic borrowing, the government of Malawi, through the Reserve Bank, continues to reject bids on treasury bills. In the most recent bidding, the government rejected 46.27% of the bids.

The Reserve Bank of Malawi continues to reject Treasury Bill bids to reduce government borrowing

Contain Reserve Bank’s net lending to Government

The Reserve Bank of Malawi has suspended all major procurement activities as a response to government's directive on fiscal discipline and reducing public expenditure

Reserve Bank of Malawi suspends procurement to reduce public expenditure

Rationalize fiscal expenditure and stop implementation of non-budget activities

Statistics show a drop in Malawi's year-on-year inflation rate from 26% in December 2025 to 24.9% in January 2026. This has been mainly due to the drop in maize prices which is the country's staple food.&nbsp;

Inflation drops to 24.9% in January 2026 from 26% in December 2025

Bring down inflation to single digits, the policy rate to not more than 12%, a stable exchange rate and an investor friendly tax regime

The Reserve Bank of Malawi rejected bids on Treasury bills totaling to MK80 billion as a way to reduce domestic government borrowing&nbsp;

The Reserve Bank of Malawi rejects MK80.05 billion on treasury bills to curb government borrowing

Adhere to the annual borrowing plan issued in conformity with the Medium-Term Debt Strategy

The Reserve Bank of Malawi has introduced special accounts called Diaspora Foreign Currency Denominated Accounts (DFCDAs) which will allow Malawians in disapora to keep their Foreign Currency within the country without having their money converted to local currency by default. This will help improve the forex situation in the country

Reserve Bank of Malawi introduces bank accounts for Malawians in Diaspora

Reverse all the negative exchange control regulations on Foreign Currency Dominated Accounts (FCDAs) belonging to Non-Governmental Organizations, Foreign missions and Malawians in Diaspora 6 months

The government of Malawi re-introduced the Farm Input Subsidy Program (FISP) for the 2025-26 farming season targeting 1.1 million smallholder farmers across the country with affordable farm inputs. This replaces MCP government's Affordable Inputs Program (AIP) which ran from 2020 to 2025. Like AIP, FISP aims to enhance smallholder farmers' access to cheap farm inputs as one way of increasing agricultural productivity in the country.&nbsp;

Government re-introduces and launches FISP for the 2025-26 farming season

Ensure timely access to quality, affordable farm inputs for all farmers by improving supply chains, developing a fertilizer plant, and reforming the Farm Input Subsidy Program (FISP) to better support capable smallholder maize farmers to enhance sustainable food security in Malawi

On 9 December, 2025 the government of Malawi got African Development Fund&rsquo;s (ADF) approval for a grant of $22.9 million which is meant to be invested towards the rehabilitation of Malawi&rsquo;s Kapichira and Nkula B hydropower plants, marking a transformative investment in the nation's energy future.

Government of Malawi secures $22.9 million from African Development Bank towards Rehabilitation of Kapichira and Nkula B plants

Maintain Electricity Generation Company (EGENCO) 441MW plants, and embark on new Hydro Power plants at Wovwe, Nyika, Mbongozi, Thyolo, Dwambazi, Chasombo and Chizuma

Facilitate the revitalisation of Malawi’s international trade fairs, national agricultural fairs, regional trade fairs, and SME Fairs

Malawi’s missions abroad to include securing export markets and attracting foreign investors to Malawi in their performance targets

Facilitate the expansion of the export markets for Malawian goods and services through regional economic integration initiatives such SADC FTA, COMESA FTA and the African Continental Free Trade Area (AfCFTA), and multilateral trading system (World Trade Organization) and commodity agreements

Strengthen and reform the standards, quality assurance and metrology (SQAM) system to enable Malawi products break through the lucrative domestic and export markets whose standards and quality requirements are stringent

Mobilise Malawians into savings and credit cooperatives (SACCOs) and facilitate the formation of Community Banks and a Cooperative Bank to increase access to finance and provide adequate capital to industries and SMEs

Introduce tailor-made financial products in Government owned financial institutions such as Malawi Agriculture and Industrial Investment Corporation , Community Credit Fund and Export Development Fund to support investments by the working class and “missing middle” sector of the economy

Create the Community Credit Fund (CCF) to increase financial inclusion and access to affordable finance to cater for SMEs and cooperative societies

Strengthen and expand the work of Development Finance Institutions (DFIs) such as Malawi Agricultural and Industrial Investment Corporation (MAIIC) and Export Development Fund (EDF) so that they fully support start-up and large scale business ventures and support exports

Reform the business environment and improve the macroeconomic fundamentals of the economy

Establish a government-owned Holding Company to champion the setting up of companies in vital sectors such as agro-processing, mining, energy, pharmaceuticals and others

Revitalize the Malawi Investment Trade Center to attract bigger investors into Malawi and organize Takulandirani Tourism Expos initiated by the previous DPP Government

Revitalize the one-stop-service centre at the Malawi Investment and Trade Centre (MITC) which was established by the previous DPP Government and is now on its knees

Support domestic production of equipment and materials which are used in such important areas as laboratories, factories and farms

Establish industrial clusters on metal fabrication, wood products, electronics, garments and textiles, leather products, oil-seed products and others in townships

Crown the establishment of Special Economic Zones (SEZs), complete with fully serviced industrial parks at Luwinga in Mzuzu, Magwero in Lilongwe, Chigumula and Matindi in Blantyre to promote production of export goods and substitute imports

Revamp the industrial sector driven by a vibrant geoprocessing and mining sectors, supported by competitive services sectors

Create a supportive trade-related infrastructure

Enact enabling laws, promote the use of ICT and innovation, skilled human resource in technical positions of ministries, departments and agencies who will implement progressive public policies that attract potential local and foreign investors

Develop and promote Mountain Tourism

Create a Special Tourism Integrated Development area in the Nankumba Peninsula and the Cape Maclear area

Create Tourism hubs in Nkhatabay, Likoma island, Salima and Mangochi inline with the Malawi National Tourism Investment Masterplan

Ensure that locals benefit from Tourism through Community- First Investment Model and local business prioritisation

Promote investment in Tourism to both local and foreign investors through Smart Taxation, Public –Private Partnerships (PPPs) and developing international markets for Malawi's handcrafts and cultural exposés, and review of visa system

Promote professionalism and incentivise job creation in the tourism sector

Make tourism accessible to Malawi residents by among others, establishing a subsidised tourism fund for students and low-income citizens

Make Malawi a Tourism Hub for Africa and the World, through ‘Discover Malawi’ campaigns

Transform Mangochi into a City; and Cape Maclear into a Tourist hub

Upgrade Transmission system to at least 132 KVA as follows: Eastern Backbone, Western Backbone, Golomoti – Monkey Bay, Nkhotakota – Serengeti – Chinyama – Kanyika line, Lilongwe Loop, Mzimba – Dwangwa line, Phombeya –Liwonde, Kanyika – Chatoloma line, Nkula - Blantyre West– Phalombe – Zomba

Embark on the Phombeya – Nacala Interconnector to facilitate sale of Malawi’s extra power to the northern part of Mozambique

Cut Electricity Supply Corporation Malawi(ESCOM) bureaucracy by re-establishing the Power Market Limited as Single Buyer to facilitate buying and selling of electricity in the country and beyond

Embark on the Malawi – Tanzania Interconnector to trade power into the Eastern Africa Power Pool

Intensify implementation of the Malawi Rural Electrification Program (MAREP) in order to increase access to electricity to people living in rural growth or trading centres as well as rural settlements and villages

Import 120MW through Interconnectors with Mozambique and Zambia, and use the same to sell our extra power to the Southern Africa Power Pool

Facilitate Independent Power Producers to generate 100MW from Mzimba and Chitipa Wind plants; 41MW from Bongozi Hydropower plant; 100MW from Gas power plant; and over 200MW from solar in Nkhatabay, Rumphi, Karonga, Salima, Dedza, and Mangochi

Increase electricity generation to 1,500MW by implementing the following projects: the 300MW Kammwamba Coal-fired Power Plant; the 309MW Mpatamanga Hydropower Plant; the 261MW Fufu Hydropower Plant , the 190MW hydro power plant from Songwe

Increase investment in the energy sector and rationalize the energy mix

Collaborate with, and create an enabling environment for Independent Power Producers (IPPs) to invest in the power industry using various sources of power generation such as hydro, solar, wind, geothermal, natural gas, coal and co-generation among others

Promote the use of electricity, LPG, efficient biomass stoves, biomass briquetting, and other alternative energy sources for cooking and heating, including promoting e-cooking in rural and urban areas by incentivizing cost reductions for appliances and LPG

Promote production and use of bio-ethanol and biodiesel for blending, cooking and stand-alone use in vehicles but, of course, without threatening food security

Encourage and facilitate mining companies to generate their own electricity

Decentralise electricity distribution function in the country by creating four entities – one in each region of North, Centre, East and South

Improve postal and courier services by ensuring high security to prevent loss or pilferage of mail and parcels and their timely delivery; and also finalize the demarcation of the country for the postal addressing system

Enforce responsible land zoning to balance residential, commercial, agricultural and industrial needs

Implement one-stop-border posts (OSBPs) at the remaining three border posts—Songwe–Kasumulu, Muloza–Milanje, and Chiponde–Mandimba—that currently lack infrastructure and have not yet migrated to OSBPs. Improve border post infrastructure and procedures for faster transit times

Ensure road maintenance at district level be the responsibility of the district using the expanded Constituency Development Fund (CDF)

Decentralise the management of Toll-gates to the district and regional level

Continue construction of flyovers and interchanges to address congestion in the cities and business places

Establish a city transport system through the creation of a public liability company that will operate buses, with each route having its own colour coding and where taxi and minibus owners will have shares

Develop Tourism Support Infrastructure - specifically by upgrading to bitumen standards roads that lead to tourist facilities, introducing fast ferries on Lake Malawi, Ensure adequate electricity to tourist facilities, Operationalise the Malawi Tourism Authority and Promote ferry building in Malawi

Expand road rehabilitation projects and construct a comprehensive network of roads across the country.

Encourage the use of multimodal logistics solutions combining road, rail, and water transport

Build a New International Airport in Mzuzu, and upgrade Karonga, Mangochi, and Salima Airports

Promote balanced growth and development across the country, and also decongest major cities

Expand and upgrade the Chileka and Kamuzu international airports and attract more airlines into Malawi's airports

Establish a transport system from Dar es Salaam and Mbamba Bay with Chilumba and Nkhata-bay (the Mtwara Transport Corridor)

Encourage private sector investment in lake freight services to complement rail and road transport

Reintroduce heavy equipment at the council level like farm tractors and caterpillars in all local councils

Invest in modern cargo vessels and port infrastructure upgrades at these lake ports and on Likoma Island

Develop a robust domestic maritime transport network connecting Makanjira, Monkey Bay, Chipoka, Nkhata Bay, Likoma, Chizumulu and Chilumba

Consider introducing passenger trains that pass along the M1 road from Blantyre to Lilongwe as well as passenger coach on existing railway from Nsanje to Mchinji via Liwonde, Salima and Lilongwe

Build a railway line off TAZARA to Chirumba port on Lake Malawi

Seek public-private partnerships (PPP) for sustainable financing and operation of the rail network and infrastructure restoration

Strengthen railway links from Blantyre and Lilongwe to the existing railheads

Prioritise the rehabilitation of the Nacala and Sena railway corridors linking Malawi with the Mozambican coast

Develop road infrastructure from Quelimane to Blantyre, offering an alternative and potentially faster import/export route

Encourage bilateral agreements with Mozambique to develop feeder vessel services between Quelimane and Beira/Nacala

Modernize central bus terminals in the four major cities and two municipalities

Continue to work on the Nsanje World Inland port through robust engagement in addressing the identified challenges

Deliver on establishment of a dry port at Liwonde and another in Blantyre to consolidate cargo and streamline customs clearance for Nacala or Beira-bound cargo

Invest in dedicated rail road infrastructure from Liwonde to Nacala , with priority maintenance and expansion projects

Ensure that there are satellite urban centers in each region with fully functional services like primary and secondary schools, markets, hospitals, administrative centers, value adding centers, police, water, electricity and upgraded all weather roads

Revise the startup ecosystem policy to allow regulatory sandboxes, enable blockchain and cryptocurrency experimentation, and promote local content monetization in the digital economy

Establish a Cybersecurity Academy and build partnerships with the African Institute for Mathematical Sciences (AIMS), IBM, and Google for advanced technical training

Roll out a National Artificial Intelligence and Digital Innovation Policy that aligns with the African Union Digital Transformation Strategy and UNESCO AI Ethics guidelines

Invest in a National Cloud Data Centre to host government data, support AI processing, and serve as the foundation for a future AI-powered digital state

Revive tele-centres to boost ICT access, training, and AI driven entrepreneurship

Reduce taxes on ICT equipment to make technology more affordable

Create more than 150,000 digital jobs, and realise 5,000 tech-enabled small businesses

Pilot smart infrastructure solutions such as AI-assisted traffic control, surveillance, and waste management in Lilongwe, Blantyre, and Mzuzu as part of the “Mzinda Wamzeru” (Smart City) initiative

Re-introduce Public works program

Link graduates of community colleges and other skilled manpower into Small and Medium Enterprises, cooperatives and large enterprises

Recruit and retain more front-line workers and specialised agricultural staff at district and Extension Plan Area (EPA) A level

Creation of new industrial jobs, with 70% going to Malawian youth

Facilitate value addition in some of the minerals to enable them fetch higher prices on the market

Implement a comprehensive diaspora engagement program

Promote Trade, not Aid

Reforming the existing commodity exchanges for increased trade volumes, coverage, storage space and coordination among others

Enforce the requisite health, environment and safety standards

Increase the contribution of Mining to  GDP from 9.37% to 15% in five years, through the creation of a supportive business environment that will induce inclusive industrial and private sector growth, export promotion and productive competitiveness

Facilitate establishment of market for minerals

Formalize and regulate artisanal and small-scale mining while linking them to appropriate technologies and anchor mining firms

Ensure use of mineral resources mapping to develop high value mines through Public Private Partnerships (PPP) arrangements

Citizens Watch

Promise

Promise History

Reserve Bank of Malawi reduces Policy Rate to 24%