Economic expert Thomas Ngoma is urging the Malawi government to adopt a currency board arrangement to combat the country's persistent inflation, which remains above 20 percent, according to Maravi Express. Ngoma described the long-standing inflation issue as an institutional failure rather than an economic mystery, arguing that reliance on discretionary monetary policy has repeatedly failed. He pointed to Zimbabwe's recent success in reducing its inflation to around four percent through a strict, rule-based monetary regime. Ngoma stated that replacing political discretion with a disciplined framework would force the state to live within its means and provide citizens with a stable kwacha, Maravi Express reports.
Update: Following the recent hike in fuel prices, economic experts warn that the increased costs will worsen poverty and slow commercial activity across Malawi, Nyasa Times reports. Transport fares have doubled in several areas, while farmers face higher expenses for diesel-powered equipment and goods transportation. According to Nyasa Times, the national poverty rate currently stands at 75.4 percent, with gross domestic product per capita at $602.30. In response to the situation, Minister of Finance Joseph Mwanamvekha stated that the government is working to stabilise the economy through stricter public expenditure controls, revenue collection strategies, and debt restructuring efforts with multilateral lenders.