The International Monetary Fund (IMF) has urged the new Malawi government to implement policies that support economic recovery and also lower inflation.

Opposition leader, Peter Mutharika, of the Democratic Progressive Party (DPP) and brother of Malawi’s former leader won the country’s presidential election in May; with the defeated incumbent president Joyce Banda claiming the election was marred with “serious irregularities”.

IMF Resident Representative in Malawi, Geoffrey Oestreicher while commenting on the election noted that administration change notwithstanding, the global lender’s policy advice remains.

“The IMF engages with the governments of its member countries, not with individuals,” he said, adding, “In the political process administrations may change, but when they do, IMF policy advice should remain based on objective evaluation of the economic situation.”

According to Oestreicher, the exchange rate policy and fuel pricing regimes put in place by Banda’s administration in May 2012 should be maintained, noting that “they have served Malawi well and their retention would help ensure that resources— including foreign exchange— are freely available in the market and allocated efficiently to maximize Malawi’s growth potential”.

The economy of Malawi is predominantly agricultural, with about 90% of the population living in rural areas and agriculture contributing 37 percent to GDP. The sector is also responsible for 85 percent of export revenues.

The landlocked country in south central Africa ranks among the world’s least developed countries.

By: George Mpofu