False reports that govt has agreed to devalue Kwacha baseless, says Mwanamvekha

By Jones Gadama

Minister of Finance Joseph Mwanamvekha has trashed as false and baseless reports circulating on Malawi24 and Opera News claiming that President Arthur Peter Mutharika’s government has agreed to devalue the Malawi Kwacha as part of a new IMF deal.

Speaking to Maravi Post in an exclusive interview yesterday, Mwanamvekha said the article titled “IMF deal: APM ‘agrees’ to devalue Malawi Kwacha” is misleading and not supported by facts, the IMF statement itself, or any communication from the President.

The Minister pointed out that Malawi24 in its own story admits that the IMF statement does not confirm a devaluation decision, yet went ahead to publish a headline saying the President has agreed.

Mwanamvekha described this as irresponsible reporting aimed at creating unnecessary panic among Malawians.

According to Mwanamvekha, the IMF statement quoted by Malawi24 does not at any point say devaluation has been agreed.

What IMF Mission Chief Justin Tyson said after his team held meetings in Lilongwe from September 22 to October 6 is that the authorities and the team have made considerable progress in designing a package of macroeconomic policies that could be supported under an Extended Credit Facility arrangement and incorporate home-grown initiatives under the National Economic Recovery Plan.

Tyson also said that facilitated by good collaboration and the positive reform path, discussions will continue to finalize the policy package that could underpin an ECF-supported program.

Mwanamvekha told Maravi Post that nowhere in that statement is devaluation listed as an agreed condition, and in fact the same IMF acknowledges that devaluation without supporting reforms can fuel inflation, speculation and weaker growth in an import-dependent economy such as Malawi.

The Finance Minister clarified that in his pre-recorded interview with Malawi Broadcasting Corporation, President Mutharika did not mention devaluation at all.

What the President said, Mwanamvekha explained, is that rebuilding the economy is proving harder than anticipated because of the massive damage left by the previous MCP administration, but that his government is making steady strides through home-grown solutions and support from international partners.

The President pointed to a new ECF programme as one of the routes towards stabilisation alongside domestic measures, not as a surrender of the Kwacha.

Mwanamvekha reiterated government’s position that it will not repeat past mistakes.

He said government is negotiating with the IMF and World Bank to come up with reforms that are properly sequenced and timed and also reforms that will protect vulnerable people. He insisted that devaluation is not on the table.

The Minister further said since returning to power, President Mutharika has been cleaning up the mess left by MCP, including runaway inflation, empty forex reserves, fuel and sugar crises and two collapsed IMF programmes that failed in 2020 and May 2025.

He said even the World Bank in its latest Malawi Economic Monitor titled Building Stability to Unlock Growth has praised the Mutharika administration for executing the 2026/27 national budget within approved limits for the first time in more than five years and cutting the primary fiscal deficit from 3.7 percent to 0.4 percent of GDP.

Mwanamvekha said these are the real reforms government is focused on, including fiscal consolidation, tighter expenditure controls, fuel and sugar pricing reforms and protection of social spending, and not punishing Malawians with another devaluation that would raise the cost of fuel, fertiliser, medicines and machinery like the 44 percent devaluation Malawians suffered in November 2023.

He therefore urged Malawians to ignore the fake headline and assured that President Mutharika has not agreed to devalue the Kwacha but is negotiating a homegrown recovery plan that will not repeat past mistakes.

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