Malawi has weathered the storm of Cyclone Idai, with the economy expected to grow by 4.5% in 2019, according to International Monetary Fund (IMF) mission chief Pritha Mitra. Malawian shippers primarily use the ports of Nacala, Beira and Durban. In a statement released after a September mission visit to Malawi, Mitra said: “Malawi’s recent economic performance has been favourable despite the impact of Cyclone Idai. “Economic growth is expected to strengthen to about 4.5% in 2019, supported by a rebound in agriculture in most of the country and reconstruction of infrastructure that was damaged by the cyclone in the southern region.” This is up from 3.7% in 2018, and is in line with an African Development Bank estimate of 5.6% growth in the 2019/2020 financial year. “Over the medium term, growth could rise further to 6-7%, backed by greater access to finance, crop diversification, an improved business climate, and more resilient infrastructure, including improved electricity generation. “Inflation is expected to remain in single digits and gradually converge to 5% over the medium term. “The banking system remains stable and its resilience is improving, with reduced nonperforming loans and increased provisioning. Credit to the private sector has picked up in recent months but sustainably increasing access to finance will require addressing structural barriers, such as challenges with the collateral registry, mobile banking, and property rights,” she said.
IMAGE
