• President Peter Mutharika has reappointed Joseph Mwanamvekha as Malawi’s finance minister.

• The country faces high inflation, a currency shortage, and heavy debt.

• Mwanamvekha’s return aims to restore fiscal discipline and rebuild confidence.

President Peter Mutharika has appointed Joseph Mwanamvekha as Malawi’s new finance minister through a decree signed on Sunday, October 5. The move marks a comeback for the economist, who previously held the same post between 2019 and 2020 under Mutharika’s short-lived second administration, which was overturned after the 2019 election results were annulled.

Before that, Mwanamvekha served as Secretary to the Treasury from 2010 to 2012, Minister of Industry and Trade in 2014, and later as Minister of Agriculture in 2017.

His appointment comes at a tense political moment. Mutharika’s return to power follows growing public frustration over worsening economic conditions. Mwanamvekha inherits an economy weakened by structural imbalances, global shocks, recurring droughts, and inconsistent fiscal policies.

According to the IMF, Malawi’s growth averaged only 1.5% between 2022 and 2024, while inflation reached 27.3% in July 2025—one of the highest rates in Africa. Food inflation, above 31%, has sharply raised maize prices, as production fell from 3.5 million to 3.1 million tons between 2023 and 2024.

The country’s foreign currency crisis highlights the severity of its external imbalance. Gross reserves dropped from $201 million in 2023 to $149 million in 2024, with a further decline expected to $118 million this year—barely enough to cover 0.3 months of imports. The shortage of foreign currency has triggered fuel shortages and disrupted large parts of the economy.

Public debt, estimated at 88% of GDP in 2024, further constrains government finances, with interest payments already accounting for nearly 7% of GDP.

An economist by training, Mwanamvekha previously worked at the Reserve Bank of Malawi, where he developed expertise in macroeconomic management, and later led Malawi Savings Bank before moving into politics. During his earlier term at the Finance Ministry, he oversaw talks with the IMF for an economic reform program.

Though his room for maneuver is now narrower, Mwanamvekha’s blend of public finance and banking experience could prove valuable in restoring fiscal discipline and rebuilding investor confidence in Malawi’s fragile economy.