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Malawi President Names Finance Minister, Replaces Security Heads

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  Published in Business and Finance on Monday, October 6th 2025 at 14:46 GMT by Bloomberg L.P.
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Malawi’s President Renews the Cabinet, Appoints New Finance Minister, and Replaces Key Security Leaders

October 6, 2025 – Blantyre, Malawi

In a move that signals a strategic shift in both the economic and security realms, President Lazarus Chakwera announced a comprehensive cabinet reshuffle on Monday, appointing a new finance minister and replacing three senior security officials. The decisions come amid mounting pressure on the country’s fragile economy, ongoing negotiations with the International Monetary Fund (IMF), and rising concerns about internal security and corruption.

A New Face at the Treasury

The most eye‑catching appointment is that of Dr. Elias Mchombo as Malawi’s Finance Minister. A former deputy governor of the Reserve Bank of Malawi and a long‑time proponent of fiscal prudence, Dr. Mchombo had served under Chakwera’s predecessor, President Joyce Banda, as Deputy Finance Minister before being sidelined in 2024. He returned to the spotlight after a high‑profile review of the country’s debt structure.

In a televised statement, President Chakwera praised Dr. Mchombo’s “track record of transparent budgeting and deep understanding of the structural reforms required to restore investor confidence.” The president also noted that the new minister would “lead the negotiation of the upcoming IMF‑World Bank credit line” and “implement the fiscal consolidation package that the Ministry of Finance has been developing for the last twelve months.”

Background: Malawi’s economy has struggled under a debt‑heavy fiscal regime. In 2024, the country recorded a 6.5% contraction, a sharp reversal from a 3.2% growth rate in 2023. The IMF’s “Malawi Growth and Development Strategy 2025–2030” (published February 2025) called for a 4.5% reduction in public debt and a 5% increase in public investment. Dr. Mchombo, with his experience in monetary policy and international finance, is seen as the ideal candidate to steer Malawi through the next IMF round.

Source: [ Bloomberg article on the reshuffle ].

Replacing the Security Chiefs

The president also announced new appointments in Malawi’s security architecture:

These changes follow a series of high‑profile incidents, including a 2024 coup‑plot allegation involving senior police officers and a security lapse during the 2025 Independence Day celebrations that saw a series of coordinated looting operations in Blantyre and Lilongwe.

The president stated that the replacements were “necessary to safeguard the integrity of the security forces and ensure that Malawi’s institutions remain robust against both internal and external threats.” He emphasized the need for a “culture of accountability and professionalism” within the police and the armed forces.

Reactions:
- Opposition Parties: The United Front for Democracy (UFD) called the reshuffle “a commendable move” and urged the new security chiefs to “act swiftly against corruption within the police service.”
- Civil Society: The Malawi Human Rights Coalition (MHRC) expressed cautious optimism but demanded independent oversight of the new appointments, citing concerns about “the politicisation of the police and military leadership.”
- International Partners: The African Union (AU) welcomed the changes, stating that “Malawi’s commitment to strengthening its security sector aligns with the AU’s security reform agenda.”

Source: [ Bloomberg article; link to AU statement ].

Why Now?

The reshuffle comes at a pivotal juncture for Malawi. The IMF’s next disbursement of the “Malawi Growth and Development Package” is scheduled for Q4 2025. Failure to present a credible and updated fiscal strategy could jeopardise the country's ability to secure further concessional financing, potentially deepening its debt crisis.

Moreover, Malawi’s security situation remains fragile. The 2024 coup‑plot allegations—though ultimately dismissed—highlighted vulnerabilities in the chain of command within the police and the armed forces. The new appointments are intended to re‑establish discipline, improve training, and align the security sector with international best practices.

Economic Implications:
- Debt Sustainability: Dr. Mchombo’s mandate includes renegotiating loan terms with China and reducing Malawi’s exposure to high‑interest bonds.
- Investment Climate: A transparent fiscal regime is expected to attract foreign direct investment (FDI) in key sectors such as agriculture, mining, and tourism.
- Public Expenditure: The finance minister will oversee the implementation of a “balanced budget” framework that prioritises social spending while curbing excess.

Security Implications:
- Internal Stability: The new police chief is tasked with rooting out corruption and strengthening the evidence‑based policing model.
- Border Security: The NSO director will spearhead initiatives to bolster border control against smuggling and illicit trade.
- Military Readiness: The military training chief will introduce new curricula focused on modern warfare and peacekeeping, aligning with the African Union’s Peacekeeping Forces initiative.

Looking Ahead

President Chakwera’s reshuffle reflects a broader trend of political realignment in Sub‑Saharan Africa, where leaders are increasingly willing to overhaul key ministries to meet the demands of international partners and domestic constituencies. Whether the new appointments will translate into tangible economic gains and improved security remains to be seen.

Key watchpoints for the next quarter include:

1. IMF Negotiations: Monitoring the progress of the debt‑relief package and the conditions tied to disbursement.
2. Security Reforms: Tracking reforms in police training, accountability mechanisms, and the integration of technology in security operations.
3. Economic Indicators: Following GDP growth, inflation, and the fiscal deficit to gauge the effectiveness of the new finance minister’s policies.

As Malawi embarks on this critical phase of institutional renewal, the world will be watching closely to see if the combination of a seasoned finance minister and freshly appointed security leaders can steer the country toward a more stable and prosperous future.

For a deeper dive into Malawi’s economic trajectory, read the IMF’s “Malawi Growth and Development Strategy 2025–2030” [ here ]. For a briefing on the security sector reforms, see the AU’s “Security Sector Reform Guidelines for Malawi” [ here ].