By Benadetta Chiwanda Mia:
Economic think tank, the Economics Association of Malawi (Ecama), has urged the government to ensure that the 2025-26 national budget reflects reality as pre-budget consultations begin this month.
In an interview on Monday, Ecama president Bertha Chikadza said strategic investments and fiscal prudence are crucial for economic growth and stability.
Chikadza said funding for tourism should be increased as a key growth driver, adding that this would boost infrastructure development and attract private investment.
She said the agriculture, tourism and mining sectors should receive priority funding to ensure sustainable growth and poverty reduction.
“The agriculture budget must strengthen climate-smart practices to mitigate adverse weather impacts. We need serious investment in irrigation to combat hunger.
“However, being an election year, there might be excessive borrowing to finance expansionary policies. We may see disproportionate spending on programmes like social cash transfers and the Affordable Inputs Programme to impress voters,” Chikadza said.
Meanwhile, National Small and Medium Enterprises (SMEs) National Coordinator William Mwale has called for increased support for SMEs through the budget.
“We need a fully-fledged ministry of SME and cooperatives. If we are talking about a private sector-led economy, we must start by promoting rural enterprises,” Mwale said.
The Ministry of Finance is expected to present the 2025-26 financial blueprint during the February meeting of Parliament.
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