By Burnett Munthali
Minister of Finance Simplex Chithyola Banda today presented the 2025/2026 National Budget in Parliament, outlining key measures aimed at addressing Malawi’s economic challenges and promoting sustainable growth.
The budget, which comes at a critical time for the country, prioritizes economic stability, with a strong emphasis on forex regulations, local production, and the revitalization of key sectors.
One of the most notable highlights of the budget is the introduction of stricter foreign exchange controls designed to stabilize the kwacha and ensure that foreign reserves are efficiently managed.
With Malawi facing persistent forex shortages, the government aims to tighten regulations on external transactions while encouraging local businesses to source inputs domestically.
In a bid to boost production and reduce dependency on imports, the budget includes incentives for local industries, particularly in agriculture, tourism, mining, and manufacturing.
Agriculture remains a key driver of the economy, and the government has pledged increased funding for irrigation projects, subsidies for smallholder farmers, and support for large-scale commercial farming to enhance food security and export capacity.
The tourism sector, which has struggled in recent years, is set to benefit from infrastructure improvements and marketing initiatives aimed at attracting more international visitors.
With the global demand for minerals rising, the government has also prioritized the mining sector, offering tax breaks and incentives to investors willing to explore and process Malawi’s mineral resources locally.
The manufacturing industry, which has faced significant challenges due to high production costs and unreliable electricity supply, will receive targeted support, including tax reliefs and investment in energy infrastructure to boost industrial productivity.
Minister Chithyola Banda emphasized that this budget is designed to put Malawi on a path to economic recovery, ensuring that key sectors receive the necessary support to drive growth and create jobs.
As Parliament debates the budget, stakeholders will be keen to assess whether these measures will effectively address the country’s pressing economic challenges and set the stage for long-term stability.
