IMF hails Malawi for progress in governance

The international Monetary Fund hails Malawi (IMF) Governance Diagnostic Mission hailed Malawi for progress recorded in governance, legal framework and administrative reforms.

Kenji Moriyama IMF Deputy Division Chief of Fiscal Operations in the Fiscal Affairs Department made this observation in Lilongwe at the of the mission.

The aim of the mission was to find out how Malawi is fairing in the area of economic governance.

Source who attended attended the end of mission briefing with Finance Minister Simplex Chithyola Banda confirmed that Moriyama observed that, so far, Malawi is faring well as it has done quite a number of reforms such as integration of integrated Financial Management System (Ifmis), legal framework, and the way the Reserve Bank of Malawi (RBM), Malawi Revenue Authority (MRA) and other institutions are implementing reforms.

Nelnan Koumtingue IMF Resident Representative said fund provides technical assistance and training to its member countries in a wide range of areas, he also added that the last mission was one of such activities.

The November 2023 IMF staff Report on Malawi stated that the fund continues to provide technical assistance (TA) and training to support the authorities’ reforms and help to build capacity, coordinating closely with TA from other development partners.

The Report adds that Public Finance Management TA to the Ministry of Finance and Economic Affairs has focused on reforms in the critical areas of bank reconciliation, payment efficiency, in- year and year-end financial reporting, and budgeting.

It has also focused on expenditure control, cash management, and state-owned enterprises oversight, and public investment management, implementation of the new Ifmis and management of fiscal risk.

The November report noted that while some progress has been made, there is need for authorities to ramp up implementation of the new Ifmis, cash management, commitment controls, automatic reconciliation with the government’s bank statements, and fiscal reporting and to improve the quality, analysis use and publication of available information.

Chithyola Banda, during the meeting said they are happy that IMF Governance Diagnostic Mission has concluded its mission in the country after meeting stakeholders critical in governance. When they say economy is recovering it means people have a right to participate in economic activates and that government is respecting people’s rights and fundamental freedoms.

Banda added that recommendations from the IMF Team would further enhance governance and people’s active participation in the economic development of the country.

Betchani Tchereni Secretaty to the Treasury said they consulted almost every section of the society including CSO’s chief, private sector and opinion leaders during the pre-budget consultation in order to entrench the spirit of economic governance in the country.

Source:Times