Title Page

MALAWI

STAFF REPORT FORTHE 2021 ARTICLE IV CONSULTATION—INFORMATIONAL ANNEX

November 30, 2021

Prepared By

Contents

• FUND RELATIONS

• JOINT MANAGERIAL ACTION PLAN

• RELATIONS WITH THE AFRICAN DEVELOPMENT BANK

• STATISTICAL ISSUES

Fund Relations

(As of October 31,2021)

Membership Status

Joined: July 19, 1965; Article VIII

General Resources Account:

	SDR Million	%Quota
Quota	138.80	100.00
Fund holdings of currency (exchange rate)	136.36	98.24
Reserve tranche position	2.44	1.76

View Table

	SDR Million	%Quota
Quota	138.80	100.00
Fund holdings of currency (exchange rate)	136.36	98.24
Reserve tranche position	2.44	1.76

SDR Department:

	SDR Million	%Allocation
Net cumulative allocation	199.40	100.00
Holdings	4.37	2.19

View Table

	SDR Million	%Allocation
Net cumulative allocation	199.40	100.00
Holdings	4.37	2.19

Outstanding Purchases and Loans:

	SDR Million	%Quota
RCF Loans	138.75	99.06
ECF Arrangements	146.88	105.82

View Table

	SDR Million	%Quota
RCF Loans	138.75	99.06
ECF Arrangements	146.88	105.82

Latest Financial Commitments:

Arrangements:

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
ECF	04/30/2018	09/24/20201	105.84	53.85
ECF	07/23/2012	06/29/2017	138.80	138.80
ECF	02/19/2010	07/22/2012	52.05	13.88

View Table

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
ECF	04/30/2018	09/24/20201	105.84	53.85
ECF	07/23/2012	06/29/2017	138.80	138.80
ECF	02/19/2010	07/22/2012	52.05	13.88

Outright Loans:

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
RCF	10/02/2020	10/06/2020	72.31	72.31
RCF	05/01/2020	05/05/2020	66.44	66.44

View Table

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
RCF	10/02/2020	10/06/2020	72.31	72.31
RCF	05/01/2020	05/05/2020	66.44	66.44

Overdue Obligations and Projected Payments to Fund¹

(SDR Million; based on existing use of resources and present holdings of SDRs):

¹When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

	Forthcoming
	2021	2022	2023	2024	2025
Principal		25.81	22.37	23.11	33.46
Charges/Interest	0.02	0.10	0.10	0.10	0.10
Total	0.02	25.91	22.47	23.21	33.56

¹When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

View Table

	Forthcoming
	2021	2022	2023	2024	2025
Principal		25.81	22.37	23.11	33.46
Charges/Interest	0.02	0.10	0.10	0.10	0.10
Total	0.02	25.91	22.47	23.21	33.56

¹When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Implementation of HIPC Initiative:

¹Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

²Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

				Enhanced Framework
Commitment of HIPC assistance
	Decision point date			December2000
	Assistance committed
	by all creditors (US$ Million)1			1,057.00
		Of which: IMF assistance (US$ million)		45.27
			(SDR equivalent in millions)	33.37
		Completion point date		Aug 2006
Disbursement of IMF assistance (SDR Million)
	Assistance disbursed to the member			33.37
		Interim assistance		11.57
		Completion point balance		21.80
	Additional disbursement of interest income2			3.82
			Total disbursements	37.19

¹Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

²Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

View Table

				Enhanced Framework
Commitment of HIPC assistance
	Decision point date			December2000
	Assistance committed
	by all creditors (US$ Million)1			1,057.00
		Of which: IMF assistance (US$ million)		45.27
			(SDR equivalent in millions)	33.37
		Completion point date		Aug 2006
Disbursement of IMF assistance (SDR Million)
	Assistance disbursed to the member			33.37
		Interim assistance		11.57
		Completion point balance		21.80
	Additional disbursement of interest income2			3.82
			Total disbursements	37.19

¹Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

²Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

Implementation of Multilateral Debt Relief Initiative (MDRI):

¹The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

MDRI-eligible debt (SDR Million)1	37.87
Financed by: MDRI Trust	14.53
Remaining HIPC resources	23.34

Debt Relief by Facility (SDR Million)
	Eligible Debt
Delivery Date	GRA	PRGF	Total
December 2006	N/A	7.91	7.91
September 2006	10.84	19.12	29.96

¹The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

View Table

MDRI-eligible debt (SDR Million)1	37.87
Financed by: MDRI Trust	14.53
Remaining HIPC resources	23.34

Debt Relief by Facility (SDR Million)
	Eligible Debt
Delivery Date	GRA	PRGF	Total
December 2006	N/A	7.91	7.91
September 2006	10.84	19.12	29.96

¹The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

Implementation of Catastrophe Containment and Relief (CCR)¹:

¹As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Date of Catastrophe	Board Decision Date	Amount Committed (SDR million)	Amount Disbursed (SDR million)
N/A	04/13/2020	7.20	7.20
N/A	10/02/2020	7.20	7.20
N/A	04/01/2021	7.81	7.81
N/A	10/06/2021	6.72	6.72

¹As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

View Table

Date of Catastrophe	Board Decision Date	Amount Committed (SDR million)	Amount Disbursed (SDR million)
N/A	04/13/2020	7.20	7.20
N/A	10/02/2020	7.20	7.20
N/A	04/01/2021	7.81	7.81
N/A	10/06/2021	6.72	6.72

¹As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Safeguards Assessments:

The 2021 safeguards assessment of the RBM is substantially completed. It found significant deterioration of safeguards at the RBM since the 2018 assessment. Governance arrangements and the internal control environment are considered weak. Governance reform should establish the Board as the RBM’s main decision-making body responsible for oversight and policy formulation, and to introduce collegiality in executive management. Amendments of the central bank legal framework are needed to safeguard the central bank’s autonomy and enhance collegiality in executive management. The RBM will also need to strengthen management of foreign reserves.

Exchange Arrangements:

In May 2012, the government liberalized the foreign exchange regime, devalued the kwacha by about 33 percent, and adopted a dejure floating exchange rate regime. Since May 2012, the RBM has not set a target rate and allowed substantial volatility in the exchange rate. However, the U.S. dollar exchange rates have shown remarkable stability since October 2016. Accordingly, the de facto exchange rate arrangement is classified as “stabilized”. Inflows of foreign exchange and swap arrangements have allowed for increase in international reserves until 2020. The exchange regime is free of restrictions and multiple currency practices. The RBM reintroduced in August 2021 a surrender requirement to address foreign exchange shortages which is treated as a temporary measure to address extraordinary circumstances and should be lifted as conditions improve.

Article IV Consultation:

The Executive Board concluded the last Article IV consultation with Malawi on April 30, 2018.

Financial Sector Assessment Program (FSAP), Reports on Observance of Standards and Codes (ROSCs), and Offshore Financial Center (OFC) Assessments:

A joint team of the World Bank and the International Monetary Fund visited Malawi under the FSAP program during two missions in July and December 2007. The Financial System Stability Assessment (FSSA) was issued in June 2008 (SM/08/198). An FSAP development module was conducted in mid-2017.

Corporate Governance and Accounting and Auditing ROSC missions visited Malawi in February and June 2007.

An update on the FAD mission on the fiscal transparency module was issued in March 2007. A ROSC on the data module, based on a September 2003 mission, was published in October 2004.

Technical Assistance: (since 2015, as of November 2021)

Date of Delivery	Department	Ministry/Agency	Purpose/Topic	Modality
11/21	FAD	MOF	Supporting implementation of a new ITAS	Virtual Mission
11/21	AFE	MOF	Improving quality of general government fiscal data	Virtual Mission
11/21	AFE	NSO	Compilation of GDP expenditure and production	Virtual Mission
09/21	AFE	MOF	Using tax data for GDP compilation	Virtual Mission
09/21	FAD	MOF	Developing a VAT compliance improvement plan	Virtual Mission
09/21	FAD	MOF	Integrating performance budgeting and IT systems	Virtual Mission
09/21	FAD	MOF	Excise management	Virtual Mission
08/21	AFE	MOF	Strengthening project appraisal and selection	Virtual Mission
07/21	AFE	NSO	Continued compilation of GDP expenditure	Virtual Mission
07/21	FAD	MOF	Audit of high risk sectors for VAT	Virtual Mission
06/21	STA	NSO	CPI Update	Virtual Mission
05/21	MCM	RBM	Principles for financial market infrastructures training	Workshop
05/21	MCM	RBM	Review of oversight framework	Workshop
04/21	STA	RBM	Monetary and financial statistics	Virtual Mission
04/21	FAD	MOF	Strengthen excise management	Virtual Mission
03/21	STA	RBM	External sector statistics	Virtual Mission
12/20	AFE	NSO	National accounts: Review and assist to compile GDP by production	Virtual Mission
09/20	FAD	MOF	Develop a revenue action plan to mitigate the impact of COVID-19	Virtual Mission
08/20	FAD	MOF	Fiscal risks during COVID-19	Virtual Mission
07/20	AFE	NSO	COVID-19 Prices: Compiling PPI and IIP weights	Virtual Mission
07/20	AFE	NSO	COVID-19 National Accounts: Compilation of the supply table	Virtual Mission
06/20	FAD	MOF	Fiscal reporting: Completing the cash basis IPSAS implementation	Virtual Mission
06/20	FAD	MOF	Implementing Msonkho online	Virtual Mission
02/20	FAD	MOF	Public sector balance sheet	Mission
02/20	FAD	MOF	Developing a revenue mobilization strategy	Mission
01/20	MCM	RBM	Projection of the Central Bank balance sheet	Mission
12/19	FAD	MOF	Assessing tax and customs administration reform progress	Mission
11/19	AFE	NSO	Compilation of the supply table	Mission
08/19	AFE	NSO	Updating PPI and IIP weights	Mission
08/19	MCM	RBM	Cyber risk supervision	Mission
07/19	MCM	RBM	National payment system	Mission
07/19	FAD	MOF/RBM/NSO	Macro-fiscal forecasting	Mission
07/19	STA	NSO	Supply and use tables	Mission
04/19	MCM	RBM	Monetary policy operations	Mission
04/19	STA	NSO	External sector statistics	Mission
04/19	STA	NSO	National Accounts	Mission
04/19	STA	MOF	Government finance statistics	Mission
03/19	MCM	RBM	Local currency bond market	Mission
02/19	FAD	MOF	TSA/IFMIS	Mission
02/19	ICD	RBM	Forecasting and Policy Analysis System	Mission
12/18	FAD	MOF	Revenue administration	Mission
12/18	STA	MOF	Government finance statistics	Mission
12/18	FAD	MOF	Building effective taxpayer registers	Workshop
11/18	STA	NSO	National Accounts	Mission
10/18	FAD	MOF	PFM	Mission
10/18	FAD	MOF	Revenue administration	Mission
10/18	ICD	RBM	Policy analysis and forecasting	Mission
10/18	MCM	RBM	Insurance Supervision and Regulation	Mission
09/18	FAD	MOF	Revenue administration	Workshop
08/18	FAD	MOF	Macro-fiscal forecasting	Mission
08/18	FAD	MOF	PFM/IFMIS	Mission
06/18	STA	MOF	Government finance statistics	Workshop
06/18	MCM	MOF/RBM	Developing Local Securities Market	Mission
06/18	FIN/LEG	RBM	Central Bank law	Mission
06/18	FAD	MOF	PFM/Budget Execution and Controls	Mission
06/18	FAD	MOF	Strengthening oversight of SOEs	Mission
05/18	STA	NSO	National accounts	Mission
04/18	FAD	MOF	Public Investment Management	Mission
03/18	STA	NSO	National Accounts	Mission
03/18	STA	RBM	Monetary and financial statistics	Mission
03/18	STA	MOF	Government finance statistics	Mission
03/18	FIN/LEG	RBM	Safeguards Assessment Mission	Mission
03/18	FAD	MOF	PFM/Fiscal risk	Mission
03/18	FAD	MOF	Revenue Administration	Mission
03/18	ICD	RBM	Policy analysis and forecasting	Mission
03/18	STA	RBM	Monetary and financial statistics	Mission
02/18	FAD	MOF	PFM/ Financial controls	Mission
02/18	STA	RBM	Monetary and financial statistics	Mission
02/18	FAD	MOF	Customs administration	Mission
01/18	STA	NSO	External sector statistics	Mission
01/18	STA	NSO	Price statistics	Mission
12/17	FAD	NSO	National accounts	Mission
12/17	FAD	MOF	Budgeting	Mission
12/17	FAD	MOF	Tax administration	Workshop
11/17	STA	MOF	Government finance statistics	Workshop
11/17	MCM	RBM	Financial sector regulation	Mission
11/17	MCM	RBM	Banking supervision	Mission
11/17	STA	NSO	National account statistics	Mission
11/17	FAD	MOF	Debt management system	Mission
11/17	MCM/WB	RBM/MOF	Debt management strategy	Mission
10/17	STA	MOF	Government Financial Statistics	Mission
09/17	STA	NSO	Price Statistics	Mission
09/17	ICD	RBM	Policy analysis and forecasting	Mission
08/17	FAD	MOF/MOF/NSO	Macroeconomic forecasting	Mission
08/17	ICD	RBM	Policy analysis and forecasting	Mission
08/17	FAD	MOF	Public financial management	Mission
07/17	MCM	RBM	Forex operations and repo market	Mission
05/17	ICD/MCM	RBM	Forecasting / Policy Analysis System	Mission
05/17	FAD	MOF	Customs administration	Mission
05/17	FAD	MOF	Cash management and TSA	Mission
04/17	STA	RBM	Financial soundness indicators	Mission
04/17	FAD	MOF	Compliance risk analysis	Mission
04/17	FAD	MOF	Cash management	Mission
03/17	MCM	RBM	Financial market infrastructure	Workshop
01/17	MCM	RBM	Bank supervisory framework	Mission
01/17	ICD/MCM	RBM	Monetary policy framework	Mission
11/16	FAD	MOF	Taxpayer register	Mission
10/16	FAD	MOF	Risk management in customs	Mission
10/16	ICD/MCM	RBM	Forecasting / Policy Analysis System	Training
09/16	STA	RBM	General Data Dissemination System	Mission
09/16	FAD	MOF	PFM/ Financial controls	Mission
08/16	STA	NSO	Consumer price Framework	Mission
07/16	ICD	MOF	Government financial statistics	Training
06/16	STA	NSO	National accounts statistics	Mission
06/16	LEG	RBM	Bank resolution	Workshop
05/16	MCM/ICD	RBM	Monetary policy framework	Mission
04/16	FAD	MOF	PFM	Mission
04/16	MCM	RBM	Basel framework	Mission
04/16	STA	NSO	National accounts statistics	Mission
03/16	MCM	RBM	IT risk	Mission
02/16	LEG	RBM	Safeguard assessment	Mission
02/16	MCM	RBM	Foreign exchange interventions	Mission
01/16	LEG	RBM	AM L/CFT supervision	Mission
01/16	FAD	MOF	Tax reform	Mission
11/15	MCM	RBM	Interbank money market	Mission
11/15	FAD	MOF	Fiscal reporting	Mission
10/15	MCM	RBM	Repo market and forex swaps	Workshop
10/15	STA	NSO	National accounts statistics	Mission
09/15	FAD	MOF	Pension reform proposals	Mission
09/15	FAD	MOF	Expenditure control, bank reconciliation, and fiscal reporting	Mission
07/15	FAD	MOF	Cash planning and management	Mission
06/15	STA	NSO	Price Statistics	Mission
05/15	FAD	RBM	TADAT Pilot Assessment	Mission
04/15	FAD	MOF	Implementing priority PFM reforms II	Mission
04/15	STA	NSO	National Accounts Statistics	Mission
03/15	LEG	RBM	Helping draft Banking law amendments	Mission
03/15	STA	MOF	Government Finance Statistics	Mission
02/15	STA	NSO	Balance of Payments Statistics	Mission
02/15	STA	NSO	National Accounts Statistics Harmonization	Workshop
02/15	MCM	RBM	Advice on the Implementation of ICAAP/SREP supervisory framework.	Mission
01/15	FAD	MOF	Action plan for implementing priority PFM reforms	Mission

View Table

Date of Delivery	Department	Ministry/Agency	Purpose/Topic	Modality
11/21	FAD	MOF	Supporting implementation of a new ITAS	Virtual Mission
11/21	AFE	MOF	Improving quality of general government fiscal data	Virtual Mission
11/21	AFE	NSO	Compilation of GDP expenditure and production	Virtual Mission
09/21	AFE	MOF	Using tax data for GDP compilation	Virtual Mission
09/21	FAD	MOF	Developing a VAT compliance improvement plan	Virtual Mission
09/21	FAD	MOF	Integrating performance budgeting and IT systems	Virtual Mission
09/21	FAD	MOF	Excise management	Virtual Mission
08/21	AFE	MOF	Strengthening project appraisal and selection	Virtual Mission
07/21	AFE	NSO	Continued compilation of GDP expenditure	Virtual Mission
07/21	FAD	MOF	Audit of high risk sectors for VAT	Virtual Mission
06/21	STA	NSO	CPI Update	Virtual Mission
05/21	MCM	RBM	Principles for financial market infrastructures training	Workshop
05/21	MCM	RBM	Review of oversight framework	Workshop
04/21	STA	RBM	Monetary and financial statistics	Virtual Mission
04/21	FAD	MOF	Strengthen excise management	Virtual Mission
03/21	STA	RBM	External sector statistics	Virtual Mission
12/20	AFE	NSO	National accounts: Review and assist to compile GDP by production	Virtual Mission
09/20	FAD	MOF	Develop a revenue action plan to mitigate the impact of COVID-19	Virtual Mission
08/20	FAD	MOF	Fiscal risks during COVID-19	Virtual Mission
07/20	AFE	NSO	COVID-19 Prices: Compiling PPI and IIP weights	Virtual Mission
07/20	AFE	NSO	COVID-19 National Accounts: Compilation of the supply table	Virtual Mission
06/20	FAD	MOF	Fiscal reporting: Completing the cash basis IPSAS implementation	Virtual Mission
06/20	FAD	MOF	Implementing Msonkho online	Virtual Mission
02/20	FAD	MOF	Public sector balance sheet	Mission
02/20	FAD	MOF	Developing a revenue mobilization strategy	Mission
01/20	MCM	RBM	Projection of the Central Bank balance sheet	Mission
12/19	FAD	MOF	Assessing tax and customs administration reform progress	Mission
11/19	AFE	NSO	Compilation of the supply table	Mission
08/19	AFE	NSO	Updating PPI and IIP weights	Mission
08/19	MCM	RBM	Cyber risk supervision	Mission
07/19	MCM	RBM	National payment system	Mission
07/19	FAD	MOF/RBM/NSO	Macro-fiscal forecasting	Mission
07/19	STA	NSO	Supply and use tables	Mission
04/19	MCM	RBM	Monetary policy operations	Mission
04/19	STA	NSO	External sector statistics	Mission
04/19	STA	NSO	National Accounts	Mission
04/19	STA	MOF	Government finance statistics	Mission
03/19	MCM	RBM	Local currency bond market	Mission
02/19	FAD	MOF	TSA/IFMIS	Mission
02/19	ICD	RBM	Forecasting and Policy Analysis System	Mission
12/18	FAD	MOF	Revenue administration	Mission
12/18	STA	MOF	Government finance statistics	Mission
12/18	FAD	MOF	Building effective taxpayer registers	Workshop
11/18	STA	NSO	National Accounts	Mission
10/18	FAD	MOF	PFM	Mission
10/18	FAD	MOF	Revenue administration	Mission
10/18	ICD	RBM	Policy analysis and forecasting	Mission
10/18	MCM	RBM	Insurance Supervision and Regulation	Mission
09/18	FAD	MOF	Revenue administration	Workshop
08/18	FAD	MOF	Macro-fiscal forecasting	Mission
08/18	FAD	MOF	PFM/IFMIS	Mission
06/18	STA	MOF	Government finance statistics	Workshop
06/18	MCM	MOF/RBM	Developing Local Securities Market	Mission
06/18	FIN/LEG	RBM	Central Bank law	Mission
06/18	FAD	MOF	PFM/Budget Execution and Controls	Mission
06/18	FAD	MOF	Strengthening oversight of SOEs	Mission
05/18	STA	NSO	National accounts	Mission
04/18	FAD	MOF	Public Investment Management	Mission
03/18	STA	NSO	National Accounts	Mission
03/18	STA	RBM	Monetary and financial statistics	Mission
03/18	STA	MOF	Government finance statistics	Mission
03/18	FIN/LEG	RBM	Safeguards Assessment Mission	Mission
03/18	FAD	MOF	PFM/Fiscal risk	Mission
03/18	FAD	MOF	Revenue Administration	Mission
03/18	ICD	RBM	Policy analysis and forecasting	Mission
03/18	STA	RBM	Monetary and financial statistics	Mission
02/18	FAD	MOF	PFM/ Financial controls	Mission
02/18	STA	RBM	Monetary and financial statistics	Mission
02/18	FAD	MOF	Customs administration	Mission
01/18	STA	NSO	External sector statistics	Mission
01/18	STA	NSO	Price statistics	Mission
12/17	FAD	NSO	National accounts	Mission
12/17	FAD	MOF	Budgeting	Mission
12/17	FAD	MOF	Tax administration	Workshop
11/17	STA	MOF	Government finance statistics	Workshop
11/17	MCM	RBM	Financial sector regulation	Mission
11/17	MCM	RBM	Banking supervision	Mission
11/17	STA	NSO	National account statistics	Mission
11/17	FAD	MOF	Debt management system	Mission
11/17	MCM/WB	RBM/MOF	Debt management strategy	Mission
10/17	STA	MOF	Government Financial Statistics	Mission
09/17	STA	NSO	Price Statistics	Mission
09/17	ICD	RBM	Policy analysis and forecasting	Mission
08/17	FAD	MOF/MOF/NSO	Macroeconomic forecasting	Mission
08/17	ICD	RBM	Policy analysis and forecasting	Mission
08/17	FAD	MOF	Public financial management	Mission
07/17	MCM	RBM	Forex operations and repo market	Mission
05/17	ICD/MCM	RBM	Forecasting / Policy Analysis System	Mission
05/17	FAD	MOF	Customs administration	Mission
05/17	FAD	MOF	Cash management and TSA	Mission
04/17	STA	RBM	Financial soundness indicators	Mission
04/17	FAD	MOF	Compliance risk analysis	Mission
04/17	FAD	MOF	Cash management	Mission
03/17	MCM	RBM	Financial market infrastructure	Workshop
01/17	MCM	RBM	Bank supervisory framework	Mission
01/17	ICD/MCM	RBM	Monetary policy framework	Mission
11/16	FAD	MOF	Taxpayer register	Mission
10/16	FAD	MOF	Risk management in customs	Mission
10/16	ICD/MCM	RBM	Forecasting / Policy Analysis System	Training
09/16	STA	RBM	General Data Dissemination System	Mission
09/16	FAD	MOF	PFM/ Financial controls	Mission
08/16	STA	NSO	Consumer price Framework	Mission
07/16	ICD	MOF	Government financial statistics	Training
06/16	STA	NSO	National accounts statistics	Mission
06/16	LEG	RBM	Bank resolution	Workshop
05/16	MCM/ICD	RBM	Monetary policy framework	Mission
04/16	FAD	MOF	PFM	Mission
04/16	MCM	RBM	Basel framework	Mission
04/16	STA	NSO	National accounts statistics	Mission
03/16	MCM	RBM	IT risk	Mission
02/16	LEG	RBM	Safeguard assessment	Mission
02/16	MCM	RBM	Foreign exchange interventions	Mission
01/16	LEG	RBM	AM L/CFT supervision	Mission
01/16	FAD	MOF	Tax reform	Mission
11/15	MCM	RBM	Interbank money market	Mission
11/15	FAD	MOF	Fiscal reporting	Mission
10/15	MCM	RBM	Repo market and forex swaps	Workshop
10/15	STA	NSO	National accounts statistics	Mission
09/15	FAD	MOF	Pension reform proposals	Mission
09/15	FAD	MOF	Expenditure control, bank reconciliation, and fiscal reporting	Mission
07/15	FAD	MOF	Cash planning and management	Mission
06/15	STA	NSO	Price Statistics	Mission
05/15	FAD	RBM	TADAT Pilot Assessment	Mission
04/15	FAD	MOF	Implementing priority PFM reforms II	Mission
04/15	STA	NSO	National Accounts Statistics	Mission
03/15	LEG	RBM	Helping draft Banking law amendments	Mission
03/15	STA	MOF	Government Finance Statistics	Mission
02/15	STA	NSO	Balance of Payments Statistics	Mission
02/15	STA	NSO	National Accounts Statistics Harmonization	Workshop
02/15	MCM	RBM	Advice on the Implementation of ICAAP/SREP supervisory framework.	Mission
01/15	FAD	MOF	Action plan for implementing priority PFM reforms	Mission

Joint Managerial Action Plan

(As of November 9, 2021)

Title	Products	Expected Delivery Date
A. Mutual Information on Relevant Work Programs
World Bank work program in the next 12 months	Analytical and Advisory Activities:
	1. Impact Evaluation of Emergency Response and Post Crash Care in Malawi and Tanzania	April 29, 2022
	2. Using Remote Tracking to Detect and Deter Medications Theft in Malawi	December22, 2021
	3. Malawi Poverty Assessment FY21	March 28, 2022
	4. Malawi Economic Monitor	May 31, 2022
	5. Malawi: Overcoming Challenges to Transform Human Capital	May 20, 2022
	6. Malawi Country Gender Assessment and Evaluationof Coordinated Response to GBV/SEA	November30, 2021
	7. Malawi Transport lnfraSAP2.0	June 30, 2022
	8. Malawi programmatic poverty analysis on project outcomes and poverty/vulnerability using RFMS	June 2, 2023
	9. Malawi: Energy Sector Financial Strengthening	August 31, 2022
	10. Mobilizing Long-term Finance in Malawi	June 28, 2022
	11. Malawi Country Climate and Development Report	July 29, 2022
	12. Malawi: A Deep-Dive Study for Promoting Resilient Urban Development and Driving Sustainable Regional Growth	June 22, 2022
	13. Malawi Programmatic JET Country Economic Memorandum	April 14, 2023
	14. Malawi Gender Platform	March 29, 2024
	Lending
	1. Lilongwe Water and Sanitation Project-Additional Financing	December 16, 2021
	2. Agriculture SectorWide Approach Support Project II Additional Financing	December31, 2021
	3. Shire Valley Transformation Program – Phase 2	June 21,2022
	4. Social Support for Rural Livelihoods Project Additional Financing	May 31, 2022
	5. Additional Financing for Malawi COVID-19 Emergency Response and Health Systems Preparedness Project	May 13, 2022
	6. Mpatamanga Hydro Power Project	April 5, 2022
	7. Malawi Growth and Resilience Development Policy Financing	April 29, 2022
	8. Malawi Transport Asset Management and Safety Project	July 28, 2022
	9. Sustainable Transmission and Energy Access in Malawi	October 25, 2022
B. Requests for Work Program Inputs
IMF request to World Bank	1. Updates on WB support to Malawi	Continuous
World Bank request to IMF	1. Regular updates and exchange of views on medium-term macroeconomic and fiscal projections including sharing detailed excel tables on Real, Monetary, Fiscal and External Sectors	Continuous
C. Agreement on Joint Products and Missions
Joint products in next 12 months	1. Debt Sustainability Analysis (update)	December, 2021

View Table

Title	Products	Expected Delivery Date
A. Mutual Information on Relevant Work Programs
World Bank work program in the next 12 months	Analytical and Advisory Activities:
	1. Impact Evaluation of Emergency Response and Post Crash Care in Malawi and Tanzania	April 29, 2022
	2. Using Remote Tracking to Detect and Deter Medications Theft in Malawi	December22, 2021
	3. Malawi Poverty Assessment FY21	March 28, 2022
	4. Malawi Economic Monitor	May 31, 2022
	5. Malawi: Overcoming Challenges to Transform Human Capital	May 20, 2022
	6. Malawi Country Gender Assessment and Evaluationof Coordinated Response to GBV/SEA	November30, 2021
	7. Malawi Transport lnfraSAP2.0	June 30, 2022
	8. Malawi programmatic poverty analysis on project outcomes and poverty/vulnerability using RFMS	June 2, 2023
	9. Malawi: Energy Sector Financial Strengthening	August 31, 2022
	10. Mobilizing Long-term Finance in Malawi	June 28, 2022
	11. Malawi Country Climate and Development Report	July 29, 2022
	12. Malawi: A Deep-Dive Study for Promoting Resilient Urban Development and Driving Sustainable Regional Growth	June 22, 2022
	13. Malawi Programmatic JET Country Economic Memorandum	April 14, 2023
	14. Malawi Gender Platform	March 29, 2024
	Lending
	1. Lilongwe Water and Sanitation Project-Additional Financing	December 16, 2021
	2. Agriculture SectorWide Approach Support Project II Additional Financing	December31, 2021
	3. Shire Valley Transformation Program – Phase 2	June 21,2022
	4. Social Support for Rural Livelihoods Project Additional Financing	May 31, 2022
	5. Additional Financing for Malawi COVID-19 Emergency Response and Health Systems Preparedness Project	May 13, 2022
	6. Mpatamanga Hydro Power Project	April 5, 2022
	7. Malawi Growth and Resilience Development Policy Financing	April 29, 2022
	8. Malawi Transport Asset Management and Safety Project	July 28, 2022
	9. Sustainable Transmission and Energy Access in Malawi	October 25, 2022
B. Requests for Work Program Inputs
IMF request to World Bank	1. Updates on WB support to Malawi	Continuous
World Bank request to IMF	1. Regular updates and exchange of views on medium-term macroeconomic and fiscal projections including sharing detailed excel tables on Real, Monetary, Fiscal and External Sectors	Continuous
C. Agreement on Joint Products and Missions
Joint products in next 12 months	1. Debt Sustainability Analysis (update)	December, 2021

Relations with the African Developmentt Bank

(As of November 2021)

The African Development Bank (AfDB) operations in Malawi date back to 1969. The AfDB Group Malawi Country Office was opened in 2007. As of September 30, 2021, the AfDB had provided significant and diversified support to Malawi, with cumulative commitments worth UA 1,010.2 billion (about US$1.4 billion) to finance 116 operations, including thirteen studies and two lines of credit.

The AfDB’ s Malawi Country Strategy Paper (CSP) covering the period 2018–2022 is fully aligned with the third Malawi Growth and Development Strategy (MGDS III, 2017–22), Malawi Vision 2063, and the AfDB’s corporate priorities in the Long-Term Strategy (LTS, 2013–22) and High 5 priorities.

The current CSP 2018–2022, aims to support the foundations of private sector led growth by investing in infrastructure and promoting diversification and transformation agenda. In this regard, the CSP covers two pillars. Pillar I: Investing in infrastructure development through energy and transport; and Pillar II: Investing in economic transformation by strengthening agriculture value addition and developing water infrastructure.

The strategic objective of pillar 1 is to improve competitiveness and efficiency of private and public sector, by extending infrastructure, limiting bottlenecks, and reducing investment constraints that increase business transaction costs. The outcomes to this pillar include improved connectivity to local and regional markets, reduced transport costs, and increased private sector investment in energy and transport. Similarly, the strategic objective of pillar 2 is to boost economic diversification and build resilience by reducing cost of market entry, underpinning the creation of firms and jobs that contribute to the broadening the tax base and enhancing macro-stability The outcomes for pillar 2 include increased productivity and production, increased market development and diversification, empowered local communities and improved health and wellness.

Given the rapidly growing population, it is critical that the economy starts creating more economic opportunities that would generate increased revenues for the government to efficiently and effectively provide required social services and public goods, while ensuring a dynamic and growing private sector.

Crosscutting themes are mainstreamed into the CSP and are an integral part of lending and non-lending operations. Environment and climate change, skills and training especially amongst the youth, and economic and financial governance are the central cross-cutting areas in operations selected for support.

Since the CSP approval in October 2018, as of 30 September 2021, the Bank had approved 9 new projects amounting to about USD 220.64 million (UA157.6 million) over the period 2018–2020, in the water, agriculture, and roads sectors in line with the CSP priorities. About 62% (UA 97.6 million) of the approved resources were secured from the African Development Fund; while the remaining balance came from Nigerian Trust Fund, Global Environmental Facility and Special Relief Fund. The recently approved projects includes: (i) Nkhata Bay Town Water Supply and Sanitation Project (USD 15 million) in October 2018; Shire Valley Transformation Programme (USD 35 million) in December 2018; (iii) Additional Financing to Sustainable Rural Water and Sanitation Infrastructure Project (USD 2.5 million) in May 2019; (iv) Post Cyclone IDAI Emergency Recovery for Malawi (USD 22.5 million) in June 2019; and (v) the Multinational Nacala (Nsipe-Liwonde Rehabilitation) Road Project (USD 37 million) in June 2019. In April 2019, (vi) the AfDB also approved an Emergency Relief Assistance to the tune of USD 1.5 million (USD 1 million to Mozambique and USD 250,000 each to Malawi and Zimbabwe). The grant resources aimed to contribute to Government efforts in meeting the urgent and immediate needs of the households affected by Cyclone IDAI. In October 2019, the (vii) the Sustainable Fisheries and Aquaculture development project was approved totaling USD 13.44 million (UA 9.6 million). During July 2020, the Bank Board approved two projects: (viii) Financing for promoting competitiveness in tourism amounting to USD 980,000 (UA 0.7 million), and in July 2020, (ix) a COVID-19 Response Support Program (a budget support operation) amounting to USD 46 million (UA 32.9 million).

Through a strong partnership with the EU, the AfDB has managed to secure 18 million Euros (grant) on 25^th February 2019 to co-finance the Multinational Nacala Road Corridor Development Project Phase V. In support of the Nkhata Bay Town Water Supply and Sanitation Project, the AfDB is administering OPEC Fund for International Development (OFID) USD 12 million loan.

For the remaining period 2021–2022, four planned projects are being prepared for approval including: (i) Digitalization, Financial Inclusion and Competitiveness Project for USD 13.7 million (due in the year 2021), (ii) Africa Disaster Risk Financing (ADRiFi) worth USD 4.9 million) (due for approval in 2021), (iii) Agriculture Commercialization, Value Addition & Youth Agribusiness Project amounting to USD 20 million (due in 2022), and (iv) Rehabilitating and Upgrading of M5 Road (North-South Road Corridor Project-Benga-Nkhotakota-Dwangwa Road (USD 49.7 million) planned to be approved in early 2022

These interventions aim at strengthening economic transformation by enhancing agriculture value chains, increasing mechanization, increasing access to finance, improving market linkages, and supporting crop diversification. These will underpin new income opportunities for emerging commercial farmers while strengthening linkages to small-scale farmers with increased focus on women and youth. Small industry development will be supported through agro-processing and light industrialization that will contribute to expand the economy and create jobs. The interventions in the water sector are expected to increase capacity of water reservoirs, small dams harvesting schemes, and improve access to potable water to free up time in rural areas especially for women: to allow them focus on other social economic activities. The interventions will support water resource management in key water basins such as Songwe River and Lake Malawi that impact on other sectors, such as energy, agriculture, tourism, and fisheries.

In the recent past, the AfDB has also provided Malawi with quick disbursing budget support. Following the government’s re-engagement with the IMF and the approval of the US$157 million Extended Credit Facility (ECF) arrangement in July 2012, the AfDB approved an ADF Grant for Crisis Response Budget Support operation, for USD40 million. The AfDB designed the Restoration of Fiscal Stability and Social Protection (RFSSP) program whose objective was to contribute to restoring fiscal stability and enhancing public finance management, as well as support social protection measures to mitigate the adverse social impact of the devaluation of the kwacha and the increases in fuel and electricity prices. To support this agenda, the RFSSP had two components to strengthen: PFM transparency and accountability, and social protection systems.

In 2015, the African Development Fund Board approved a grant of USD 30 million for the Protection of Basic Services Program (PBS). This ring-fenced Sector Budget Support was designed to protect critical expenditures in health and education, and improve accountability following suspension of general budget support. The grant was disbursed in one tranche in July 2015. The Food Crisis Response Budgetary Support followed the PBS operation in 2016. The AfDB will continue to coordinate closely with the IMF in the design of its future budget support operations to ensure its programs are underpinned by sound macro-economic policies.

The AfDB alongside other development partners are working in support of strengthening Malawi’s public finance management (PFM) systems. In support to the implementation of PFM reforms and in strengthening internal control systems following ‘cashgate’, the AfDB approved two PFM Institutional Support Projects (USD 7 million), one of which closed in June 2018 and the other closed in December 2019. Among others, the Bank has supported the country to review the PFM Act, which builds on previous support of the Bank under PFMSPII. Through AfDB’s COVID-19 Budget Support project that was approved in July 2020, the government has published the COVID-19 procurements. The other previous key areas of AfDB PFM support focused on tax administration reforms (upgrading of the Automated System for Customs Data—ASYCUDA putting in place a Tax Appeals Tribunal legislative framework, review of the Customs and Excise Act, etc.); public procurement reforms; and strengthening financial management systems, Treasury Instructions, Treasury Funds Management Guidelines, undertaking an audit of Treasury Funds, and strengthening the Integrated Financial Management Information System (IFMIS) oversight, among others.

In terms of private sector support, the AfDB supported a number of private sector projects directly and indirectly through regional operations and private equity (PE) funds. The AfDB approved, in 2017, a USD 300 million long-term senior loan to finance the Nacala Rail and Port Project, which is a regional project. The loan included an allocation of USD 18.1536 million to Central African Railways Company Limited (CEAR) of Malawi. The project will provide Malawi with a more efficient access to a sea port and will therefore lead to a reduction in transportation costs for import and export trade. To complement the Nacala Rail and Port Project and the Nacala Roads Projects and in order to support inclusive growth along the Nacala Development Corridor in Malawi, the AfDB approved a USD 1 million Nacala Rail and Port Value Additional TA Project. The TA project will help local SMEs and farmers take advantage of the road and rail infrastructures by improving on the efficiency and competitiveness of their businesses. The AfDB also approved, in 2016, a soft commodity finance facility of USD 20 million (a regional project) to Meridan Consolidated Investment Limited. The funds approved will be used to purchase soft commodities (i.e. maize, groundnuts, pigeon peas, soya, sesame and beans) directly from small-scale farmers in Malawi, Mozambique and Zimbabwe. Meridan Consolidated Investment Limited is originally a Malawian company that has expanded its operations regionally.

The AfDB has also provided support for non-lending activities, including feasibility studies and analytic work, to inform the design of new operations and policy dialogue. In 2017, the AfDB prepared a feasibility study for Kholombidzo Hydro Power Project, which will provide a foundation for pipeline operations. In the same year, the AfDB financed the feasibility study for establishment of an Agriculture Cooperative AfDB. Based on the findings and recommendations of the feasibility study, the Government of Malawi recently launched the Malawi Agricultural and Industrial Investment Corporation Pic which is a government initiative to establish a development AfDB in the country but being led by the private sector.

In addition, the AfDB is supporting the Private Public Partnership Commission (PPPC) with a grant to build PPP negotiation capacity through a “hot line” arrangement, whereby the PPPC can tap into international legal services to advise on PPP transactions. The AfDB has provided technical assistance to the Malawi Postal Cooperation for the development of the E-Post Strategy and Action Plan. It is to be noted that the AfDB, in recent years, has undertaken a number of analytical studies, including Domestic Resource Mobilization Study for Malawi, and provided TA to the Reserve AfDB of Malawi to strengthen capacity in macro-economic forecasting; prepared a Public Expenditure Review with the World Bank and other development partners; and provided support for undertaking of the Expenditure Tracking Study for Malawi.

Looking forward, the AfDB plans to scale up its lending to the energy sector with a view to address power shortages. The pipeline of energy sector projects includes the Songwe River Basin Development Project, the Malawi-Zambia Power Inter-connector Project, and the Kholombidzo Hydro Power Project. The AfDB continues to engage with the World Bank and other partners for co-financing arrangements of its pipeline operations. In view of this, the AfDB is taking the lead in mobilizing donor resources and private finance for the Songwe Hydro Power Project, a multinational project with Tanzania. It will also promote private investment in the energy sector, through PPPs and the use of innovative financing instruments, such as Partial Risk Guarantees. Specifically, for the period 2021–2022, the Bank is considering three projects for financing from the Non-Sovereign operation private sector window including: Voltalia Kanengo Dzuwa Limited (VKDL Solar Project), Mbongozi Hydro Electric Project, and Mpatamanga 350MW hydro project.

The AfDB undertook a mid-term review of the Country Strategy Paper (2018–2022) in 2020, to take stock of achievement of results and aligned with Malawi’s new National Development Plan and the Bank’s Long Term Strategy, in particular, the “High Fives” priorities, which include “Light up and Power Africa”, “Feed Africa”, “Industrialize Africa”, “Integrate Africa” and “Improve the Quality of Life for the People of Africa”. During 2022, the AfDB will prepare a project completion report for the Country Strategy Paper (2018–2022) to guide the formulation of its new Country Strategy for the period 2023–2027.

Statistical Issues

(As of November 15,2021)

(As of November 15, 2021)
1. Assessment of Data Adequacy for Surveillance
General: Data provision has shortcomings that are serious and significantly hamper surveillance. Most affected areas are: national accounts, fiscal, monetary and external sector statistics.
National Accounts: GDP was rebased from 2010 to 2017. Malawi’s nominal GDP for 2017 has been revised upwards by 38.4 percent from MK4,635.4 billion (US$6.35 billion) in the 2010 base year to MK6,417.3 billion (US$8.8 billion) in the 2017 base year. STA is providing a series of technical assistances (TA) to the National Statistics Office (NSO) on reconciling GDP by expenditure and GDP by production with rebased figures. Currently, GDP by production and by expenditure has a discrepancy of around 14 percent, which could be a shortcoming that significantly hampers surveillance. Available data sources are investigated and recommended for utilization to improve the quality of the GDP series and the NSO is planning to introduce a revision policy before end-2022.
Price Statistics: The NSO will be updating the CPI using expenditure data from the 5th Integrated Household Survey (IHS5), which was conducted from April 2019 to April 2020. Current CPI weights are based on the results of the 4th Integrated Household Survey (IHS4) which was conducted during 2016–2017. In response to a request from the National Statistical Office of Malawi (NSO) and in support of the AFRITAC East (AFE) work program, technical assistance (TA) missions assisted with updating the consumer price index (CPI) in 2021. The missions assisted in computing the more up-to-date weights from expenditure data generated by the 5th IHS and according to COICOP. The producer price index (PPI) is based on weights derived from the results of the Annual Economic Survey conducted in 2012. The weights should be updated, and coverage of the index expanded to other production activities, so as to better reflect the current structure of the economy. The NSO is in the process of developing export-import price indexes.
Government Finance Statistics: The accuracy and reliability of the data are affected by source data weaknesses. A key shortcoming in this area is the inadequate system of recording source data. In addition, there are serious quality problems, including data inconsistencies, that complicate program monitoring: Due primarily to differences in coverage, published data for the budgetary central government include a sizeable statistical discrepancy between above and below the line data. The coverage of government for above the line data is considerably narrower than the information on financing reported by RBM. While tax revenue data are received in a timely fashion, it is not always possible to reconcile them with deposits in the Malawi Government (MG) Account. This is a result of the way taxes are reported, and timing differences between receipt of taxes and cleared funds being available for the government. The finances and operations of the Malawi Revenue Authority are also unusually opaque. Nontax revenue, including capital revenues collected by line ministries, is not properly accounted for in the fiscal reports prepared by the Ministry of Finance. The Ministry of Finance does not include zero-coupon promissory notes, recently issued to clear arrears, in its fiscal reporting. Interest payments are currently reported on a currency basis rather than based on the residency of the holder of the security. The authorities have received significant technical assistance from the Fund and other donors to strengthen expenditure monitoring and reporting, accounting, and statistical reporting, but results have lagged. The government has pledged to strengthen public financial management and fiscal reporting. The new IFMIS has been rolled out to all MDAs on 1 July 2021, and authorities are working to produce comprehensive fiscal reports using the new system. The authorities are currently working with East AFRITAC to modify the chart of accounts and output-based structures so that they could more easily be realigned to the national strategy and be more readily understood. Annual government finance data for the Budgetary Central Government in a GFSM 2014 presentation are reported for publication in the Government Finance Statistics Yearbook (GFSY). However, these data are not disseminated domestically. STATA missions have encouraged the authorities to compile and report high frequency data for Budget Central Government in GFSM 2014 framework and assisted them in compiling data for extra budgetary units (EBUs) with the objective of expanding coverage to central government.
Monetary and Financial Statistics: The Reserve Bank of Malawi (RBM) has started to compile and report monetary data to STA using standardized report forms (SRFs). On April and May 2021, STA provided a TA mission to RBM to address outstanding issues in SRF and RBM has moved completely to reporting in SRFs.
Financial Sector Surveillance: In response to a request from the Reserve Bank of Malawi (RBM), a technical assistance (TA) mission assisted RBM in improving its monetary operations framework and to facilitate the development of the broader financial markets in April 2019. MCM provided a mission to the RBM on domestic asset management strategy which took place in January 2020.
External sector statistics (ESS): The NSO compiles annual trade and balance of payment (BOP) data. Previously trade data submission had more than nine months of lag, and the latest available Balance of Payment (BOP) data is for 2016. The international investment position (IIP) data is available up to 2019. The lack of timeliness and accuracy of the ESS significantly hampers the staffs work on projection and macroframework of the external sector development. The ESS mission conducted by STA in March 2021 focused on improvements of the coverage, compilation, and timeliness of goods trade data, along with assessment of the BOP and IIP data compilation to follow up a previous TA mission. The mission noted the issues in areas of source data collections as well as physical and human resource capacity. As of October 31, 2021, the NSO provided goods trade data up to March 2021. The timeliness of dissemination of the trade data needs to be accelerated to (at least) within two months from the end of a reference month as the STA mission recommended, especially given that no reliable BOP data is available. The daily exchange rate data, monthly international reserves data as well as the FXI data are regularly reported from the Reserve Bank of Malawi (RBM). The reported international reserves data follow closely the data template on International Reserves and Foreign Currency Liquidity (IRFCL). The RBM has started reporting an independent line for the estimated size of pledged deposits. The value of pledged deposits is, however, subject to change upon the completion of the special audit of foreign exchange reserves. The RBM also started to submit a daily FX cashflow table on a regular basis. Regarding the external debt data, the government of Malawi (GOM) now provides granular breakdowns on top of the end-year stock data. In the current conjuncture of Malawi’s extremely vulnerable position to the external sector, reliable and timely ESS reporting is essential for diagnoses of any developments in the external sector. To move forward with improvements, the NSO, RBM and the GOM should coordinate further and take appropriate steps to implement TA recommendations to ensure a regular flow of data from this system for trade, BOP and IIP compilation; and the government should allocate sufficient resources for conducting regular surveys.
II. Data Standards and Quality
Malawi implemented the e-GDDS and its National Summary Data Page (NSDP) went live on November 15, 2016 (http://cb.malawi.opendataforafrica.orq/uwkhibc/national-summarv-data-paqe-nsdp). The authorities are aiming at improving performance against the timeliness benchmarks that they have set under the e-GDDS.	Data ROSC was published on February 17, 2005.

View Table

(As of November 15, 2021)
1. Assessment of Data Adequacy for Surveillance
General: Data provision has shortcomings that are serious and significantly hamper surveillance. Most affected areas are: national accounts, fiscal, monetary and external sector statistics.
National Accounts: GDP was rebased from 2010 to 2017. Malawi’s nominal GDP for 2017 has been revised upwards by 38.4 percent from MK4,635.4 billion (US$6.35 billion) in the 2010 base year to MK6,417.3 billion (US$8.8 billion) in the 2017 base year. STA is providing a series of technical assistances (TA) to the National Statistics Office (NSO) on reconciling GDP by expenditure and GDP by production with rebased figures. Currently, GDP by production and by expenditure has a discrepancy of around 14 percent, which could be a shortcoming that significantly hampers surveillance. Available data sources are investigated and recommended for utilization to improve the quality of the GDP series and the NSO is planning to introduce a revision policy before end-2022.
Price Statistics: The NSO will be updating the CPI using expenditure data from the 5th Integrated Household Survey (IHS5), which was conducted from April 2019 to April 2020. Current CPI weights are based on the results of the 4th Integrated Household Survey (IHS4) which was conducted during 2016–2017. In response to a request from the National Statistical Office of Malawi (NSO) and in support of the AFRITAC East (AFE) work program, technical assistance (TA) missions assisted with updating the consumer price index (CPI) in 2021. The missions assisted in computing the more up-to-date weights from expenditure data generated by the 5th IHS and according to COICOP. The producer price index (PPI) is based on weights derived from the results of the Annual Economic Survey conducted in 2012. The weights should be updated, and coverage of the index expanded to other production activities, so as to better reflect the current structure of the economy. The NSO is in the process of developing export-import price indexes.
Government Finance Statistics: The accuracy and reliability of the data are affected by source data weaknesses. A key shortcoming in this area is the inadequate system of recording source data. In addition, there are serious quality problems, including data inconsistencies, that complicate program monitoring: Due primarily to differences in coverage, published data for the budgetary central government include a sizeable statistical discrepancy between above and below the line data. The coverage of government for above the line data is considerably narrower than the information on financing reported by RBM. While tax revenue data are received in a timely fashion, it is not always possible to reconcile them with deposits in the Malawi Government (MG) Account. This is a result of the way taxes are reported, and timing differences between receipt of taxes and cleared funds being available for the government. The finances and operations of the Malawi Revenue Authority are also unusually opaque. Nontax revenue, including capital revenues collected by line ministries, is not properly accounted for in the fiscal reports prepared by the Ministry of Finance. The Ministry of Finance does not include zero-coupon promissory notes, recently issued to clear arrears, in its fiscal reporting. Interest payments are currently reported on a currency basis rather than based on the residency of the holder of the security. The authorities have received significant technical assistance from the Fund and other donors to strengthen expenditure monitoring and reporting, accounting, and statistical reporting, but results have lagged. The government has pledged to strengthen public financial management and fiscal reporting. The new IFMIS has been rolled out to all MDAs on 1 July 2021, and authorities are working to produce comprehensive fiscal reports using the new system. The authorities are currently working with East AFRITAC to modify the chart of accounts and output-based structures so that they could more easily be realigned to the national strategy and be more readily understood. Annual government finance data for the Budgetary Central Government in a GFSM 2014 presentation are reported for publication in the Government Finance Statistics Yearbook (GFSY). However, these data are not disseminated domestically. STATA missions have encouraged the authorities to compile and report high frequency data for Budget Central Government in GFSM 2014 framework and assisted them in compiling data for extra budgetary units (EBUs) with the objective of expanding coverage to central government.
Monetary and Financial Statistics: The Reserve Bank of Malawi (RBM) has started to compile and report monetary data to STA using standardized report forms (SRFs). On April and May 2021, STA provided a TA mission to RBM to address outstanding issues in SRF and RBM has moved completely to reporting in SRFs.
Financial Sector Surveillance: In response to a request from the Reserve Bank of Malawi (RBM), a technical assistance (TA) mission assisted RBM in improving its monetary operations framework and to facilitate the development of the broader financial markets in April 2019. MCM provided a mission to the RBM on domestic asset management strategy which took place in January 2020.
External sector statistics (ESS): The NSO compiles annual trade and balance of payment (BOP) data. Previously trade data submission had more than nine months of lag, and the latest available Balance of Payment (BOP) data is for 2016. The international investment position (IIP) data is available up to 2019. The lack of timeliness and accuracy of the ESS significantly hampers the staffs work on projection and macroframework of the external sector development. The ESS mission conducted by STA in March 2021 focused on improvements of the coverage, compilation, and timeliness of goods trade data, along with assessment of the BOP and IIP data compilation to follow up a previous TA mission. The mission noted the issues in areas of source data collections as well as physical and human resource capacity. As of October 31, 2021, the NSO provided goods trade data up to March 2021. The timeliness of dissemination of the trade data needs to be accelerated to (at least) within two months from the end of a reference month as the STA mission recommended, especially given that no reliable BOP data is available. The daily exchange rate data, monthly international reserves data as well as the FXI data are regularly reported from the Reserve Bank of Malawi (RBM). The reported international reserves data follow closely the data template on International Reserves and Foreign Currency Liquidity (IRFCL). The RBM has started reporting an independent line for the estimated size of pledged deposits. The value of pledged deposits is, however, subject to change upon the completion of the special audit of foreign exchange reserves. The RBM also started to submit a daily FX cashflow table on a regular basis. Regarding the external debt data, the government of Malawi (GOM) now provides granular breakdowns on top of the end-year stock data. In the current conjuncture of Malawi’s extremely vulnerable position to the external sector, reliable and timely ESS reporting is essential for diagnoses of any developments in the external sector. To move forward with improvements, the NSO, RBM and the GOM should coordinate further and take appropriate steps to implement TA recommendations to ensure a regular flow of data from this system for trade, BOP and IIP compilation; and the government should allocate sufficient resources for conducting regular surveys.
II. Data Standards and Quality
Malawi implemented the e-GDDS and its National Summary Data Page (NSDP) went live on November 15, 2016 (http://cb.malawi.opendataforafrica.orq/uwkhibc/national-summarv-data-paqe-nsdp). The authorities are aiming at improving performance against the timeliness benchmarks that they have set under the e-GDDS.	Data ROSC was published on February 17, 2005.

Malawi: Table of Common Indicators Required for Surveillance

(As of October 30, 2021)

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should com prise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially-determined, including discounts rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁵including currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-a-vis nonresidents.

⁷Daily (D); weekly (W); monthly (M); quarterly (Q);annually (A); irregular (I); and not available (NA).

⁸These columns should only be included for countries for which Data ROSC (ora Substantive Update) has been published.

⁹Reflects the assessment provided in the data ROSC or the Substantive Update (published on March 10, 2004, and based on the findings of the mission that took place during May 8–21, 2003) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording, respectively, are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO);and not available (NA).

¹⁰Same as footnote 9, except referring to international standards concerning, respectively, source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.

Malawi: Table of Common Indicators Required for Surveillance

(As of October 30, 2021)

	Date of latest observation	Date received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7	Memo Items:8
						Data Quality — Methodological soundness9	Data Quality — Accuracy and reliability10
Exchange Rates	Current	Current	D	D	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	10/2021	11/2021	D	W	W
Reserve/Base Money	09/2021	11/2021	M	M	M	LO, LO,LNO,0	LO, 0,0,0,0
Broad Money	09/2021	11/2021	M	M	M
Central Bank Balance Sheet	09/2021	11/2021	M	M	M
Consolidated Balance Sheet of the Banking System	09/2021	11/2021	M	M	M
Interest Rates2	09/2021	11/2021	M	M	M
Consumer Price Index	09/2021	11/2021	M	M	M	0,LNO,0, O	LNO, 0,0,0, NA
Revenue, Expenditure, Balance and Composition of Financing3-General Government4	NA	NA				0,LO, 0,0	0,LO, 0,0, LNO
Revenue, Expenditure, Balance and Composition of Financing3-Central Government	09/2021	10/2021	M	M	I
Stocks of Central Government and Central Government-Guaranteed Domestic Debt5	06/2021	10/2021	M	M	M
External Current Account Balance	2000	04/2021	A	A	A	0,0,0,0	LO,0, LO,0,0
Exports and Imports of Goods and Services	2020	10/2021	A	A	A
GDP/GNP	2020	06/2021	A	A	A	LO, LNO, LNO, LO	LNO, LNO, LO, LQLNO
Gross External Debt	06/2021	10/2021	A	Q	I
International Investment Position6	2000	04/2021	A	A	A

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should com prise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially-determined, including discounts rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁵including currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-a-vis nonresidents.

⁷Daily (D); weekly (W); monthly (M); quarterly (Q);annually (A); irregular (I); and not available (NA).

⁸These columns should only be included for countries for which Data ROSC (ora Substantive Update) has been published.

⁹Reflects the assessment provided in the data ROSC or the Substantive Update (published on March 10, 2004, and based on the findings of the mission that took place during May 8–21, 2003) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording, respectively, are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO);and not available (NA).

¹⁰Same as footnote 9, except referring to international standards concerning, respectively, source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.

View Table

Malawi: Table of Common Indicators Required for Surveillance

(As of October 30, 2021)

	Date of latest observation	Date received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7	Memo Items:8
						Data Quality — Methodological soundness9	Data Quality — Accuracy and reliability10
Exchange Rates	Current	Current	D	D	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	10/2021	11/2021	D	W	W
Reserve/Base Money	09/2021	11/2021	M	M	M	LO, LO,LNO,0	LO, 0,0,0,0
Broad Money	09/2021	11/2021	M	M	M
Central Bank Balance Sheet	09/2021	11/2021	M	M	M
Consolidated Balance Sheet of the Banking System	09/2021	11/2021	M	M	M
Interest Rates2	09/2021	11/2021	M	M	M
Consumer Price Index	09/2021	11/2021	M	M	M	0,LNO,0, O	LNO, 0,0,0, NA
Revenue, Expenditure, Balance and Composition of Financing3-General Government4	NA	NA				0,LO, 0,0	0,LO, 0,0, LNO
Revenue, Expenditure, Balance and Composition of Financing3-Central Government	09/2021	10/2021	M	M	I
Stocks of Central Government and Central Government-Guaranteed Domestic Debt5	06/2021	10/2021	M	M	M
External Current Account Balance	2000	04/2021	A	A	A	0,0,0,0	LO,0, LO,0,0
Exports and Imports of Goods and Services	2020	10/2021	A	A	A
GDP/GNP	2020	06/2021	A	A	A	LO, LNO, LNO, LO	LNO, LNO, LO, LQLNO
Gross External Debt	06/2021	10/2021	A	Q	I
International Investment Position6	2000	04/2021	A	A	A

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should com prise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially-determined, including discounts rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁵including currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-a-vis nonresidents.

⁷Daily (D); weekly (W); monthly (M); quarterly (Q);annually (A); irregular (I); and not available (NA).

⁸These columns should only be included for countries for which Data ROSC (ora Substantive Update) has been published.

⁹Reflects the assessment provided in the data ROSC or the Substantive Update (published on March 10, 2004, and based on the findings of the mission that took place during May 8–21, 2003) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording, respectively, are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO);and not available (NA).

¹⁰Same as footnote 9, except referring to international standards concerning, respectively, source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.