Attachments
Context
In 2023, the political situation in Malawi continued to remain stable. The country’s economy, however, has been significantly weakened by frequent shocks coupled with macro-fiscal imbalances, and agricultural output has grown only marginally since 2023, and inflation remained high at 28.6 per cent as of July 2023. While there were instances of civil strife emanating from high inflation and scarcity of foreign currency in the country, the government has mostly managed to defuse them. Food prices in Malawi witnessed a continual increase, reaching 39.3 per cent year-on-year in July 2023, mainly driven by supply constraints, according to the World Bank. The Government managed to negotiate for the restoration of the International Monetary Fund (IMF) extended credit facility. Global commodity price rise, fuel costs, the impact of the conflict in Ukraine, the depreciation of the kwacha and other evolving economic conditions.
Malawi is prone to disease outbreaks and faced a significant cholera outbreak in 2022 and 2023. The country also faces major climate change and environmental challenges, and recent high temperatures and weather extremes have had a serious impact on environmental ecosystems. In March 2023, Tropical Storm Freddy caused destructive flash floods and landslides. These challenges are compounded by factors such as deforestation, limited water supply, old farming practices and declining fisheries.