Madinga hails Mutharika’s economic turnaround as inflation, interest rates tumble

Malawi’s banking chief has heaped praise on President Peter Mutharika, crediting him with steering the country’s economy firmly back on track, after a high-level meeting at Kamuzu Palace that saw both men hail a raft of encouraging economic indicators.

Bankers Association of Malawi (BAM) President Philip Madinga delivered the glowing verdict after sitting down with Mutharika, pointing to falling inflation and lower interest rates as clear evidence the President’s economic strategy is paying off.

Madinga highlighted how inflation has tumbled from 28.2% in August 2025 to 20.0% in August 2026, while interest rates have eased from 26.0% to 24.0% over the same period — figures he says paint a picture of an economy finally turning a corner after years of turbulence.

“We have commended the President because, since he returned to power, we have seen economic progress. Inflation is going down, and significant strides are being made toward economic recovery,” Madinga said.

The glowing assessment comes as Mutharika continues efforts to stabilise Malawi’s finances, having already rolled out austerity measures elsewhere in government, including slashing the size of the country’s delegation to the United Nations General Assembly to its smallest ever.

Speaking after the meeting, Mutharika revealed the encounter had also paved the way for a significant new partnership between government and the country’s banking sector, with BAM signalling its readiness to invest heavily in key areas of the economy including tourism, agriculture, infrastructure and mining.

“We had an extremely fruitful meeting. Crucially, we have agreed to work together to advance the country’s economy in key sectors such as agriculture, mining, and infrastructure development,” Mutharika said.

The tie-up marks a further vote of confidence in Mutharika’s economic stewardship from Malawi’s financial sector, at a time when the President has been pushing hard to convince both domestic and international stakeholders that the country’s economy is finally on a path to sustained recovery.