LILONGWE-(MaraviPost)-The Finance and Economic Planning Minister Simplex Chithyola Banda has projected a 3.2% economic growth for Malawi in 2024.
The minister said President Lazarus Chakwera’s Tonse Alliance government is focusing on expanding economic activities to help recover, develop, and protect the economy.
Speaking at a pre–budget meeting in the capital Lilongwe on Wednesday, January 10, 2024, Chithyola Banda explained that to develop Malawi’s economy which is currently reeling from the effects of COVID-19, Russia-Ukraine war, adverse weather shocks, and rising costs of living.
Chithyola said the country’s economy performed better in 2023 with an estimated GDP growth of 1.5 percent compared to a growth of 0.9 percent registered in 2022.
“Moving forward, we expect a gradual economic recovery with a growth of 3.2 percent in 2024 on account of the improvements in the availability of foreign exchange and investments made in the agriculture sector,” he said
He said the government has embarked fully on supporting the private sector to venture into mega-farms through the Malawi Agricultural, Industrial Investment Cooperation to produce for both local and export markets.
The minister added that the government is also focused on diversifying the economy through carbon markets trading, diaspora engagement, and the Golden Visa Programme as well as quantifying our natural minerals for investment.
Commenting on inflation, Chithyola said the government anticipates the development to slowly decline in 2024 with the end period and annual average inflation rates projected at 17.4 percent and 27.1 percent respectively.
“I want to assure you that we will do our best to fully recover from the shocks the country experienced in 2022 and 2023,” he emphasized.
In his remarks, the Economic Association of Malawi (ECAMA)’s representative Lucius Pawa said the Mega farm concept is a step in the right direction.
Pawa observed that increased agriculture exports (revenue) products from mega-farms can replace imported inputs in the manufacturing sector.