IMF says Mutharika rebuilding trust after cashgate destroyed Malawi’s macroeconomic outlook

The International Monetary Fund has said after it resolved to immediately disburse about $18.1 million (K7.6 billion) to Malawi, one of Africa’s poorest economies , that new government of President Peter Mutharika has committed to rebuild trust in public institutions after the 2013 cashgate scandal saw the country losing about K20 billion r of public funds through looting, theft and corruption.

President Mutharika meets IMF Head of Mission Oral Williams at Kamuzu Palace - Pic by Stanley Makut

President Mutharika meets IMF Head of Mission Oral Williams at Kamuzu Palace – Pic by Stanley Makut

The IMF imposed the suspension last quarter of 2013 following revelations that top government officials looted billions from government coffers in a cashgate scandal.

The scandal saw the country with almost 37 per cent of its budget coming from foreign support losing financial support and aid injection from IMF and other western countries.

In a statement after approving the resumption of aid to Malawi Mitsuhiro Furusawa, IMF Acting Chair and Deputy Managing Director said the new government [of President Peter Mutharika] has committed to rebuild trust in public institutions.

“The new administration is committed to rebuilding trust in public institutions and bringing the IMF-supported program back on track, including through maintaining a flexible exchange rate regime and the automatic fuel pricing mechanism,” said the fund.

The IMF says the breach of governance resulted in the suspension of budget support from donors, which has led to increased recourse to central bank financing, accumulation of domestic arrears, exchange rate depreciation, and high inflation.

According to the fund, Malawi’s macroeconomic outlook and performance under the IMF-supported programme was significantly damaged by a large scale theft of public funds and by policy lapses in the run-up to elections but the Fund is positive about the current administration.

The fund added that bringing inflation down to single digits and boosting official foreign exchange reserves remain key policy objectives.

Meanwhile, the National Statistical Office (NSO) in Zomba has said Malawi year-on-year headline inflation for February 2015 as measured by the consumer price index (CPI) eased 1.5 percentage points to 19.7 percent buoyed by the drop in food and non-food prices.

In the monthly Stats Flash, NSO said: “Overall, food inflation stands at 19 percent from 21.5 percent in January 2015. Although food prices have gone up, the rate of increase is much lower than the corresponding rate in the same period last year.”

University of Malawi’s Chancellor College economics professor Ben Kaluwa said since the country is heading towards the harvest period, inflation rate is expected to fall further.

IMF has called on Malawi government to address weaknesses in public financial management in order to restore confidence in the budget process and foster donor re-engagement.

“The authorities’ steadfast implementation of a comprehensive strategy in this area remains an urgent policy priority,” added the fund.

“The central bank is committed to tightening monetary policy as needed to keep inflation on a downward path. Measures taken in late 2014 have already helped reduce liquidity and stabilize the currency. Steps underway to curb deficit financing by the central bank should enhance the credibility of monetary policy.”

The fund said improved prudential and regulatory frameworks are key to safeguarding the financial sector’s stability and supporting growth adding that the recently-completed diagnostic assessments of the banking system will be used to design a strategy to address sector-wide issues.

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77 thoughts on “IMF says Mutharika rebuilding trust after cashgate destroyed Malawi’s macroeconomic outlook”

  1. Matimati says:

    God job a peter but awa a imf ndi mbavadi basi anazolowera kugwadiridwa etii so now they know that now Malawi’s in hands of a depromat man of he’s goals

  2. Jang`ala says:

    Weldone Peter & ur admin. Pamepa ndiye tauyambadi ulendo. Wasalawasala

  3. bulutu says:

    IMF. Taking advantage of the poor. APM cares not, he is a Billionaire. Putting the Country at stake of debts for the sake of the rich and famous. This ngongole will end up in their offshore accounts.

  4. charles says:

    Thank you,guys all of the comments, but am suprised , palibe akutsutsa kuti izi nzabodza,kkk ,,kkkkkkk,kkkkk,kkkkk mwakhala chete, khalani chete,chete yemweyo muyankhula basi, ndimmene zimakhalira, .Thegood thing is the IMF is developing , through helping MALAWI, Malawi is you and me

  5. Khima says:

    Mwachaje satafuna, we must applaud both the PP and DPP government because this whole review process started with PP government and DPP never derailed but to continue and we all can now say job well done…pitilizani ma program odzutsa nso economy ya dzikoli.

  6. mphatso says:

    you have just seen kuti zinthu zikutiyendera popanda ngongole zanuzo ndiye mwasowa ma customer pitani nazo ndalalma zanu za katapilazo kumayiko ena anganya inu a IMF.Mungandiuzepo dziko lomwe linali losauka lero linalemera chifukwa cha katapila wanuyo?

  7. mbani says:

    My foot 92 gone IMF stupid

  8. Gays in Malawi says:

    Phew! Thanks IMF my project was at a standstill. Now I can finish building my mansion in area 43

  9. chingolopiyo says:

    What a surprise. So IMF has agreed to resume supporting the country. While poor Malawians cannot see the performance of the government, the IMF who knows to measure performance can see that the country is doing well especially its leadership. IMF, you need to share the key performance indicators you use so that Malawians can start thinking wide. Please share them with Raphael Tenthani so that he can use them to measure the performance of the president because his key performance indicators are words of Napoleon or other people who give him thought of the day. APM and your team , congratulations for taking the right step in the right direction. More good things are coming and all the insult people are throwing at you will turn into a praise.

  10. BigMan says:

    Congratulations to the DPP administration, you have started well. Continue to build and never mind the naysayers in the opposition, media and uncivil society.

  11. Mhesha says:

    Congratulations APM and Team. Let’s move forward. ..Chakwera and his team ana achepa…DPP woyee

  12. Chemtukanika says:

    Ine ntofuna kudziwa.Mwati ndalamayo ndi ngongole(loan)kapena thandizo(donation)chabe?Chiopa ine ndi choti nkhalambafe titochulukitsa ngongole zomwe zidzukulu zathu zizavutike kubwezaje.Handifuna kudzamva IMF naitoitanizanga ndalamayi ife titafa.Chonchobe mwachita bwino nafe tidzatobe pang’ono abale.

  13. Comment thank u for help malawi l.m.f.

  14. Comment thank u l.m .f

  15. Zija says:

    Only the knowledgeables can feel sorry for this country. Bingu knew these people in and out, their mission is not to improve the welfare of Malawians but to enrich themselves. Follow Johan Hari about IMF on Malawi, you will feel sorry for youself. I dont celebrate when IMF advances on us, because I know its another pull-slap on a thin cow.

  16. Phaghlani Vwavwa says:

    Good news. Unfortunately people are still stealing in government departments. Our poverty as a country will never end because of few individuals who want to get rich quickly.

  17. akulu says:

    If u want to succeed stop ur ben ,chisala,mukhitos from abusive resources at statehouse. They are stealing too much

  18. Davie Damiano says:

    Thankyou IMF for coming back to malawi i know we will start a new journery even our policy will dynamic and stable

  19. Benlison says:

    Che Nthandalanda are you the Nyasa times editor?

  20. Anabanda says:

    Another Ndatha farm to be built soon…..just watch the space!

  21. frank says:

    Ma donors anathi azathandiza ziko lamalawi pokapoka boma lamalawi litafufuza ndalama zomwe zinabedwa mu wulamuliro wa mai joice banda zokwana mk20 billion komanso mk92 billion yomwe inabedwa muwulamuliro wa bingu wamuthalika, kapanda apo no donors kumalawi.

  22. Moyowabwino says:

    Thumbs up Mr President.Comment

  23. mwanangu says:

    Wow! Thats great.thank u IMFand congrats APM and your admin.continue working hard.may gud LORD bless all Malawians.

  24. Zisiyeni says:

    For once, I applaud you nganya Thom Chiumia. When IMF suspended aid, CSOs and Opposition went overboard commenting and saying ill of DPP and APM. When IMF has commended APM no Nsonda, Chakwera Chatsika, Jessie are saying anything! Ufiti upose apa? Ever heard the recent rantings of Lazarus? When Jessie was dishing one shit to the next, many thought she was talkative, not knowing that it was this foolish galatian who was sending her!

    1. Jelbin mk says:

      Can’t you get it!!!!!!!!!!!!!!!!!! Umbuli basi IMF is not a donor and doesn’t donate money in lends money to governments so to call this as a return of the donor community is to be naive and uninformed, we can’t jubilate a loan because we can get it anywhere and are going to pay back with interest.

  25. one malawi one people says:

    bravo APM!!!!…ukuitha. tinkadziwa ife udzakwanitsa zinthuzi…..ndiye muona asatana ena ayamba kukhomerera kumakanena mabidza…ali human “rice!” human “rice!”…….oyipa inu mulekeni APM ayendetse zinthuzi salimbana ndi munthu satukwana munthu….amangiyendetsa wilibala yake pa red carpet ali pheee kuloncha chitukuko…..kkkkkk…..salimbana ndi munthu wathuyu ……mulekeni akonze zinthu……akufuna awamangirenso mseu a Chakwera kwawo kuja akuti akumavutika popita ku Parliament…kkkkk…..zikomo! zikomo! zikomo! zikomo! zikomo!zikomo!…..kkkkkkk……mwaiziwa?…..zinkaterotu paja…..mbalame zina zikunyoza zili Pitala sawina, sawina! satha kuyankhula……shupiti!!!! mukambirana muisova….ngati muli anzeru tiyeni tiyang’ane chitsogolo tipange chitukuko apa…..nthawi yofuna kutchuka siino….campaign tym is over..

  26. one malawi one people says:

    ….zoona amwene ….wakwiya ndi mfwiti….not just mfiti koma ndikuti mfwiti!!!!!…..kkkkkkk……yaikazinso ndipo….ngati ija inathawira kunja ija …wakwiya akakolope nyanja kuti tikapopemo mafuta ife…. ndiye chitsiru china chikuti yachepa ndalamayi…..fweseki!!….iwe ngati ulinazo zambiri osapereka bwanji?…umafuna asapereke muzinyoza nkumanena kuti boma likukanika ma negotiations with donors & development partners….u r foolish u don’t love ur country……wat we r celebrating here for is the significance of the gesture not the amount …..amount ndi yochepa even your loved angel joisi banda(president wanu opemphera uja) can afford that amount…..she stole more than that…osatinso za ma donors-wa but taxes from poor Malawians who r suffering now!!!……so just keep quiet ozitcha wanzeruwe ukutinyasa…

  27. Dr Bwampini says:

    Stop graffiti with immediate effect

  28. thiodora fanrosam says:

    Dickson my friend ,you are right.The once God fearing oppositions are feeling and growing jealousy.APM and S.C.Chilima as well as G.Gondwe woyee!!

  29. Kadakwiza says:

    Former President Bakili Muluzi was also commended by IMF and nothing happened. So lomwes, this is no big deal.

  30. waganyu says:

    Bravo peter

  31. MCP says:

    Well Done APM. Mayimanso 2019

  32. the eye says:

    WHERE IS KHUMBO KACHALE? ANY ONE KNOWS.HE IS AWFULLY QUITE.

  33. James says:

    Mubenso Akhaklhalkha Inu

  34. timothy mandambwe says:

    Kaya wina afune kaya asafune nkhani yabwino ndi imeneyo basi ikanakhala Volleyball ndikanati tcheeeeeee. Bravo Mr. State President.

  35. Phungu chinthali says:

    On we go

  36. Black Market says:

    Read what Johann Hari wrote about IMF and today it is coming to do just the same on MSB.

    ( Johann Hari: Its not just Dominique Strauss-Khan. The IMF itself should be on trial-Johann Hari-Commentators – The Independent. )

    Paste this whole statement into your web address and read for yourself what happened to Malawi and this was the starting point of our untold poverty in this country. Today IMF is coming to do just the same thing to kill us further down to the grave. Any sensible leader cannot accept this stupid directive from mzungu, Muluzi made this mistake and where are we today?

    Please dont sell MSB. The approach saw MDC, and other important pillars of our economy to vanish, and Malawi was left with nothing but just a name.

  37. mgebegebe says:

    Peter ndikumtunda, ndrama amaziziwa, osat zabusazo, mzofoiira

  38. mgebegebe says:

    Kodi dzina latsopano la chakweera ndi chatsika? Koma maguys kkkkkkk

  39. precious says:

    bravo peter

  40. elias buleia says:

    atolankhani pa nkhani yabwino ngati iyi simunenapo kanthu ,koma kuwalimbikitsa a mabungwe kuti azikachita zionetsero zopusa bssi.

  41. I know some objective critics will celebrate this while some will fail to see the positive part of this story. In every positive thing they will find the negative portion and capitalise on that. I agree that all what IMF does is to lend money but it is also an institution which checks whether countries are progressing economically or not thereby informing other prospective donors of poor countries such as ours.

  42. chejali says:

    Pitala tiye nawo anyengelele akupatse zambiri tidzabenso

  43. billy wonjoya says:

    apeter womwewo kuti wawawa! Timati kazi ndi kazi mamunamamuna apa mayi aja manyazi bwaaaa!

  44. Kwitanda says:

    Wakwiya ndi mfiti, Waaakwiya ndi mfiti ndiiiiiiiithu.

    1. powder says:

      woyamba kukwiya ndi mbusa next ndi ngo. let the hands talk for the guys. this dynansity keeps the lives of pple first. come on guys let them dance to your tunes

  45. Uchindami says:

    Komadi mavuto tiri nawo ndithu. Ndalamazi ndi chenji chenicheni! Tisanamizanepo apa!

  46. Jelbin mk says:

    IMF is running Matchonisa business when your economy runs loose it’s their good news because they know that’s when they will make more money, they dictate on every move any government should take financially in order to maintain their business they dictated that our currency should be devalued 40% failing which we could face dire consequences Bingu resisted this and the results were a further downfall of the Kwacha and fuel and forex scarcity and now they are pressurising our government to sell MSB on the pretext that no government should run such a business and are disregarding the consequences this decision will bring on poor Malawians and are not questioning why the government wants to sell it for a song. All this tells how untrustworthy the government is so what kind of trust is this IMF is talking about? The government has failed to tackle cashgate in it’s totality right from 2005 and yet IMF is impressed, this IMF is being run by the alluminati thus why they don’t care whether people suffer or not as long as their business is on the track they have given several instructions to our nation since time immovable but their advice has always been good to their side not to poor Malawians their advice has never made a single difference in our economy these people are enemies of the truth and friends of dictators as long as such dictators follow their institutions of dooming his/her nation. One might wonder as to why these IMF are always on the fore front when it comes to currency devaluation? They make their business of matchonisa that way the more you devauate your currency the more you gonna pay to them and the more profits they make. Mind you IMF is not a donor they lend money to governments and get it back with interest that’s all they do.

    1. pogba says:

      Comment Ndiye titani abwana pamenepa?? What could you advise us?? What we need is our economy to be back on track, what we need is medicine in our hospitals, fertilizer for our poor farmers, school shelters and material etc. all whose beneficiaries will be our mothers, fathers and sisters. Anzanu abwereka ndalama ku IMF coz that was the only option, inu mukanatani bwana?? Tiuzeni Kuti mwina 2019 nkuzakuvoterani. isn’t it true that most of us Malawians are Monday coaches?? we are good at destroying rather than building. as we have always said, lets not only criticize but provide tangible, realistic alternatives

      1. Jelbin mk says:

        Mr Pogba that’s a good question what we should do is to: 1 stop listening to this barbaric institution in the name of IMF it tells you to do something which is against the will and the benefits of the citizens of poor countries they are the ones to blame for our problems they tell us what to sell and what keep as if the assets were theirs.2 We should stop the selling of our bank at K4 billion the amount an individual in the name of Mulli owes the bank while it is worthy 40+ billion kwacha rather the government through MSB should push all who owe the bank to honour their loans after the government has bailed out the bank which only needs K5 billion and not the blotted 23 million kwacha as a foolish RBM governor alleges. 3 All cashgate properties should be recovered and it looks there is no political and judicial will to recovering our taxes that were stolen. 4 Cashgate should not be partially dealt with but fully dealt with starting from 2005 no selective justice here.5 Malawians we must stop worshipping leaders when they are doing simply what we are paying them for because we are creating a very bad spirit in them which turns them into dictators in the long run, and it makes them to relax in discharging their duties and forget what we employed them for this never happens in other countries but only in Malawi.

    2. powder says:

      kutokota konseku ukudana nazo kuti imf yapereka dora, chonsecho unkati no trust. somebody has worked for it then you are degrading him. malawi nsanje! osamachita manyazi! akalemba walemba,

    3. Bob says:

      Katapila ameneyu

      1. Ababa Thamangiwa. says:

        Jelbin MK ndiwe munthu omvetsa chisoni. Munthu isayamika. From what you have writen it is easy to categorise you as one of the many Malawians who a re afraid of everything. You must understand that not everything that people post on the internet should be believed in its totality. the guy who wrote that post is a one of the many posting CONSPIRACY Theories which only represents their imagination which are driven by factor that you will possibly never understand. the guy who wrote that is from the Asian Region and it is a no brainer that political and religious ideologies influenced the guy to write that. Yes i agree IMF has goofed here and there but who doesnt?
        When IMF left the country with what you are calling ‘ Its Loans ‘ the whole country lamented the and saw it as the sign of collapsed systems. Now IMF has reviewed Malawi using the same criteria and they are convinced the country is now doing fine and YOU DONT RECOGNISE that, seriously? and one thing i have noted is that you sound like an ordinary ‘professional’ who perpertually worries about the your JOB SECURITY. The way you have brought in the issue of MSB shows you could be an employee there and all your comments are carefully drafted to advance your goal ~ SAVE YOUR JOB, period. For a poor man like me the most sensible thing to happen is the deallignment of all non performing public companies from government to improve efficiency. MSB has long been used by politicians as a conduit to steal public finances. Now i wouldnt want my Tax to be used sorely for enriching silly polititians and paying your salary at MSB never. That is the cheapest thing to do..! If the sale of MSB will cost government a few hundreds of millions , even a billions ( all companies which have lost good will sale for cheap anyway) so be it and we all will have been liberated from decades of organised theft of our money. So Mr Jelbin MK slow down. It is acomponent of wisdom to take one’s time.!

  47. Dickson says:

    This is the way to go.
    I know all weaked Malawians will not be happy to see the President being commended by the IMF Chief and the resumption of the donor aid.
    All they want is to see Malawi on turmoil so that the can point fingers at the President.
    NEVER, God is on my President and his government.

    1. nthandalanda says:

      Che Dickson, donors have not started supporting us and IMF is not and will not be a donor. You sort out your MWK 92 BILLION CASHGATE ISSUE and show your financial prudence. Of recent, we have heard alot of theft issues. For example,the NAC issue, the votegate, the prison cellgate and several malgovernance characters. So what are you talking about? Ndiponso samati weaked but wicked.

  48. Jose' says:

    Congratulations APM and your Government. I pray that you remain on course and never slumber, for your adversaries are many. Chakwera, say something ion this line, remembder, you are an ordained man of God not given to vices and nepotism. At least pat your president on the back. Msonda, come on say something. This is your oppotune time to show you are worth the waters. Good news to all Malawians amene satamba

  49. Wazil says:

    Yes mr peter?

  50. zinthu zatani says:

    First of all let me thank APM for appointing Gudal gondwe as finance minister in his cabinet .
    GG is a hard working and dedicated civil servant who does not condone corruption hence this current fiscal out look
    This is not the first time GG has produced such admirable results during The Bingu administration he led the country in qualifying for debts forgiveness through HIPC . Some overzealous ministers gossiped to Bingu that Gudall was claiming credit undeservedly . That was followed with Gudalls being reshuffled to local government ministry a sector completely outside is domain . I hope this time around it won’t happen again . By the way it was khumbo kachale and patricua kaliati who hatched this plot .

  51. Jelbin mk says:

    IMF is running Matchonisa business when your economy runs loose it’s their good news because they know that’s when they will make more money, they dictate on every move any government should take financially in order to maintain their business they dictated that our currency should be devalued 40% failing which we could face dire consequences Bingu resisted this and the results were a further downfall of the Kwacha and fuel and forex scarcity and now they are pressurising our government to sell MSB on the pretext that no government should run such a business

  52. Angoni Ngayongayo says:

    Well done & keep it up Mr president apa zaonetsadi kuti mukugwira ntchito ndi anyamata anzeru monga Atupele ndi Saulos. But one thing, osamalola kudzitchipitsa mpaka kukalemba mundende? Pali akuluakulu ena ntchito yawo ndiyolakwitsa anthu kungofuna kumusangalatsa. Musalole kukulakwitsani dala ndi zinthu zochepa. Muzifunsa kaye anyamata awiriwo sangakulakwitseni .Tsopano Agalitiya a Chatsika asowa chonena ndi Kongelesi yawoyo.

  53. Chipoya LJ. says:

    I hope I will hear some sort of compliments also from the leader of opposition or his spokes person. How I wish also to hear from PP’s Ken Nsonda, CSOs and other Mutharika critics.

    I hope its high time now we Malawians should unite and work in oneness for the betterment of our country. Its high time we start painting good image about our country internally and externally for the sake of te betterment of the country’s development.

    Big up to APM and its DPP led government but however, my free advice is that please let you learn from the past mistakes by ex regimes.

    All in all, GOD Bless Malawi!!!!!!!!

  54. Chipoya LJ. says:

    I hope I will hear some sort of compliments also from the leader of opposition or his spokes person. How I wish also to hear from PP’s Ken Nsonda, CSOs and other Mutharika critics.

    I hope its high time now we Malawians should unite and work in oneness for the betterment of our country. Its high time we start painting good image about our country internally and externally for the sake of te betterment of the country’s development.

    Big up to APM and its DPP led government but however, my free advice is that please let you learn from the past mistakes by ex regimes.

    All in all, GOD Bless Malawi!!!!!!

  55. Balamanthu says:

    When most economies surrounding us are getting single digit inflation figures, explain why ours is hovering around19.7%.How can this President be rebuilding the confidence of our financial systems when the same guys that looted are within the system and abusing the same system with allowance claims which they collect every friday for not doing anything right from PS to cleaner.How can the same president be rebuilding the system when the Auditor Generals report has stinking findings on the status of our financial system which are never acted upon?What system is the IMF referring to?May be it is one of the political statements to make the country happy after one of its sister bodies classified malawi the poorest on earth.Indeed we are the poorest because we put politics before development, we are lazy, dont properly use time and just focus on footbal,women and beer.How can a country develop like that.When we have thieves for our leaders who have bankrupt morals and can steal with impunity, how can we change?

    1. powder says:

      balamanthu uli ndi vuto. moyo wacongress udakulowa, khala choncho anzako ayamba ulendo

  56. stephen zeka kaunga says:

    chabwino.

  57. stephen zeka kaunga says:

    chabwino

  58. Allan Ntata says:

    zaziiiiii

  59. All the best APM and may the good Lord continue guiding you in your efforts to uplift Malawi

  60. Okhrana says:

    BOMA ILO MHLOMWE NA PA CHUMA simzanu waina bwa chakwera and peter mathanyula wakuba, kkkkk simunati wina akodzedwa BBboboma ilo odi apa tigwire ntchito ife

  61. Countryperson says:

    This is excellent news

  62. Mngoni says:

    Good news, a sigh of relief.

  63. James says:

    Thanx for the well job done.

  64. Good news to all well meaning Malawians

  65. Yes Mr president you are the real Man of the Moment,keep it up for things please.i with my fellow youth we salute you.
    To be a President you are a President with a purpose.May God be with you every where?

  66. Abk says:

    expecting comments from ken nsonda and chakwera.

Comments are closed.