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The Economics Association of Malawi (ECAMA) met the European Union (EU) Ambassador to Malawi, H.E. Daniel Aristi-Gaztelumendi, at the EU offices on Tuesday, 2nd June 2026 in Lilongwe. The engagement formed part of a courtesy call by the Ambassador, who sought to gain a deeper understanding of Malawi’s economic situation and identify areas where EU-supported programmes could best contribute to the country’s development.
During the discussions, ECAMA, represented by President Dr. Bertha Bangara Chikadza and Economist Tadala Primrose Chikafutwa, provided an overview of the current state of the Malawian economy, highlighting key macroeconomic challenges, including high inflation,which has increased the cost of living, rising public debt, foreign exchange shortages, and the wide exchange rate disparity between the formal and parallel markets. The Association also highlighted the country’s vulnerability to climate-related shocks due to its heavy dependence on rain-fed agriculture.
H.E. was particularly interested inthe ongoing developments surrounding Malawi’s public debt, of which approximately 65 percent is domestic, and how this affects the debt restructuring process. ECAMA explained that while commercial banks hold asignificant portion of the domestic debt, commendable progress has been made in restructuring it. The Association noted that the reforms being undertaken are intended to ensure that both the country and lenders are not left worse off.The meeting also discussed several other measures the government is implementing as part of the domestic debt restructuring process.
The conversation further explored the impact of exchange rate adjustments and currency devaluation on the economy. While acknowledging the importance of restoring external balance and improving export competitiveness, ECAMA emphasized that it is crucial to address the root causes of foreign exchange shortages before considering devaluation as a solution. ECAMA believes that Malawi’s foreign exchange challenges are largely structural in nature and require the establishment of effective systems to close existing loopholes, curb smuggling, and prevent the illegal export of commodities and mined minerals through unmonitored routes. ECAMA also emphasized the significant potential of the mining sector to generate foreign exchange earnings and revenue for the country. The Association highlighted that, if supported by appropriate policies, regulations, and institutional frameworks, the mining sector could become a game changer in addressing Malawi’s persistent foreign exchange shortages.
ECAMA also briefed the Ambassador on some of its previous collaborations with the European Union. These included student debates conducted in 2019 and 2020, as well as the implementation of the Enhanced Evidence-Based Research to Inform Policy Decision-Making in Public Finance Management (PFM) project between 2021 and 2023. The project was implemented in partnership with Oxfam Malawi and LUANAR under the Chuma chadziko programme.
The Ambassador expressed appreciation for the insights shared by ECAMA and commended the Association’s role in promoting evidence-based policy dialogue and informed economic discourse. He further indicated that he would engage with other partners to explore available programmes and opportunities that could be implemented incollaboration with ECAMA in the future.
