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Malawi - Country Strategy Paper 2018-2022
The African Development Bank is pleased to present the Malawi Country Strategy covering the period 2018 to 2023. The Malawi Country Strategy 2018-2022, simply referred to as the Country Strategy or the Strategy, is prepared at a time when macroeconomic stability is returning to Malawi following an economically difficult period between 2012 and 2016. The country’s reputation was marred by the Cashgate scandal that was exposed in 2013 with the theft of USD 32 million of public money. The immediate impact was a suspension of budget support by the African Development Bank and other development partners. In 2015 and 2016, Malawi was impacted by floods and drought that affected agriculture production impacting more than 5 million Malawians who suffered from food insecurity. Large amounts of maize were imported to support the affected population, which put pressure on public spending leading to higher deficits and increased debt uptake. The combined effect of macroeconomic uncertainties, weather shocks and low commodity prices on the economy was exacerbated by high inflation and interest rates, dampening business and consumer confidence. Consequently, real GDP growth remained subdued at 2.6 % in 2016.