The Economics Association of Malawi (ECAMA) has urged the incoming government to reduce reliance on donor support and prioritize homegrown development strategies, warning that overdependence on external aid threatens the country’s long-term economic sovereignty.

ECAMA President Bertha Bangara Chikadza said Malawi must shift focus toward local solutions, especially given current global trends in development assistance.

“Relying heavily on donor support is not sustainable,” said Chikadza. “To ensure continuity and ownership of our development path, we must invest in our own capacity.”

Her remarks follow President-Elect Peter Mutharika’s announcement that his administration will seek a new financing program with the IMF, months after the Fund terminated its Extended Credit Facility (ECF) due to incomplete reviews.

While ECAMA supports re-engagement, Chikadza cautioned that it must be “strategic and aligned with Malawi 2063,” warning that “short-term fixes often come at the cost of sustainable development.”

She outlined three priorities for the government in any IMF negotiations: macroeconomic stability, alignment with development goals, and fiscal sustainability. To achieve this, Chikadza has called for firm fiscal discipline, including cutting unnecessary spending, sealing financial leakages, and enforcing austerity measures.

“Transparent fiscal reporting and stronger oversight of ministries and state-owned enterprises are essential to build donor and investor confidence,” she said.

Among others, Chikadza ha also advised government to protect essential services not through borrowing, but through better resource allocation.

“Austerity should not mean cutting off services—but ensuring that resources go where they are most needed, especially for the most vulnerable,” states Chikadza.

Meanwhile, the Centre for Social Accountability and Transparency (CSAT) echoed ECAMA’s concerns. CSAT Executive Director Willy Kambwandira said Malawi cannot afford to repeat past mistakes in managing public finances.

“We need bold leadership to turn things around,” said Kambwandira. “The government must walk the talk on fiscal discipline. That means implementing strict cost-cutting measures, streamlining the public service, and eliminating wasteful expenditure that continues to drain public resources.”

He added that public trust is at stake. “Citizens want to see real accountability, not just promises. Fiscal reforms must go beyond paperwork—they must deliver value for money and prioritize spending on essential services that directly impact people’s lives.”

President-Elect Mutharika has already pledged to revive the struggling economy, saying securing a new financing program with the IMF will be one of his administration’s top priorities.

In May 2025, IMF automatically terminated its Extended Credit Facility (ECF) program due to a lack of completed program reviews.