Malawi govt says Kwacha devaluation not part of IMF negotiations

The government has dismissed reports that it is negotiating a devaluation of the Malawi Kwacha with the International Monetary Fund (IMF) as part of talks on a new Extended Credit Facility (ECF) programme.

In a press statement dated 8 October 2026, Information and Communications Technology Minister Dr Shadric Namalomba said the reports were incorrect.

“Government wishes to state clearly and unequivocally: devaluation of the Malawi Kwacha is not under discussion with the IMF,” the statement said. “It is not an item on the agenda of the current negotiations.”

The statement said an IMF mission that visited Malawi from 22 September to 6 October 2026 recognised progress on economic reforms, which it said “provide a good foundation for an IMF-supported program”.

The mission also cited considerable progress in developing policies to support a new ECF arrangement.

Namalomba said the government remains committed to tackling foreign exchange shortages, strengthening fiscal discipline, supporting production and easing the cost of living.

“IMF discussions continue towards a programme supporting economic stability and inclusive growth,” the statement said.

The government understands public concern about the Kwacha,  Namalomba said, and urged citizens, businesses and the media to avoid speculation and rely on verified statements from the government and the relevant monetary authorities.