Standard Bank upbeat on 2026/2027 budget

Malawi Stock Exchange-listed Standard Bank Plc has expressed optimism with the 2026/27 budget policy statement saying it reflects government’s commitment to austerity and economic recovery efforts.

Reacting to the Finance Minister Joseph Mwanamvekha’s 2026/27 budget presented Friday to Parliament, Chief Executive Phillip Madinga said the bank is ready to support the government realize its recovery targets as outlined in the fiscal plan.

“We welcome the 2026/2027 budget policy statement and commend the Minister of Finance’s commitment to fiscal discipline and economic stability. This new government and administration is walking the talk. At Standard Bank, we’re ready to support the government’s initiatives to drive economic growth and development,” he said.

Madinga said Standard Bank Plc, majority owned by Africa’s largest bank by assets, the Standard Bank Group, believes that with prudent financial management and strategic investments, Malawi can overcome its economic challenges and achieve sustainable growth.

“We’re committed to working with the government and other stakeholders to unlock opportunities and build a stronger economy for all Malawians,” he added.

The 2026/27 budget is Mwanamvekha’s first after the September 16 elections which brought the DPP back in government, and touting it as a return to proven economic stewardship.

The budget outlines a number of ambitious targets which if implemented can consolidate economic stabilisation efforts and reignite growth.

The budget projects GDP to grow from 2.7% in 2025 to 3.8% in 2026 and 4.9% by 2027.

“This growth will be supported by
strategic investments in key productive sectors of Agriculture, Tourism,
Mining, Manufacturing, and Small and Medium Enterprises. Special focus
will be put on increased production and value addition, export
diversification and import substitution,” said Mwanamvekha.

It targets an interest rate band of 18%, down from the current 26% signalling strong intent by the government to curb expenditure and maintain borrowing only at reduced yield curves. The budget targets a reduced inflation threshold of 15%, although this out turn could be dictated by agriculture production and weather.

According to the budget, this fiscal year’s budget deficit is projected to reach 11.9% of GDP, but the government wants to narrow it to about 9% next year.

Of the 23.9 trillion kwacha ($13.92 billion) public debt stock as of December last year, roughly 65% was domestic.

The Finance Minister added that the government is seeking to restructure its domestic and external debt to create more fiscal space.