The World Bank has released its latest Malawi Economic Monitor, warning that the country's economy is struggling with slow growth and rising prices. Economic growth for 2025 is projected at just two percent, while inflation remains high at 27.7 percent due to food costs and a weakened kwacha, according to Nation Online. The report notes that the government overspent its 2024/25 budget, pushing the deficit to 10.5 percent of gross domestic product, which restricts funding for essential public services.
In the trade sector, Malawi has secured a groundnut export market in Kenya under the African Continental Free Trade Area, Nation Online reports. H. Adams Wholesalers recently dispatched its first shipment of 30 metric tonnes of groundnuts to Kenya. Following a trade mission by the Malawi Investment and Trade Centre, Kenyan buyers have expressed interest in sourcing up to 65 metric tonnes per month, provided local suppliers meet strict food safety standards.
To help preserve foreign exchange, the newly established Coal Mines Association is calling on the government and financial institutions to invest in the local coal mining industry, according to Malawi24. Association chairman Hastings Jere stated that financing local machinery would improve production quality, reducing the need for Malawian companies to spend scarce foreign currency on imported coal.
Regional financial experts are urging Malawian small and medium enterprises to look beyond traditional banks for long-term capital. According to Malawi24, a market development specialist from the Botswana Stock Exchange recently told Malawian business journalists that closer cooperation with the Malawi Stock Exchange could stimulate cross-border investments and help local companies expand. To further improve public understanding of these financial matters, the National Bank of Malawi recently sponsored ten journalists on a business education tour to Botswana to enhance their economic reporting skills.
In other business news, Standard Bank Malawi has committed K100 million to sponsor the 2026 National Youth Summit in Lilongwe, Malawi24 reports. The funding is intended to support young entrepreneurs by providing mentorship and networking opportunities to navigate the country's difficult employment environment. Meanwhile, local government enforcement is increasing in the north, with the M'mbelwa district council launching a campaign to recover K200 million in unpaid business licence fees from local traders, according to Malawi24.