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Malawi’s President Lazarus Chakwera has suspended with immediate effect all international travel for himself and his government in a bid to save money.
The measure follows a huge devaluation of the currency as Malawi secures a loan from the International Monetary Fund (IMF) to boost its ailing economy.
Mr Chakwera has also ordered all ministers currently abroad to return home.
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Fuel allowances for senior government officials have been cut by 50%.
Malawi’s economy has been undergoing turbulent times, characterised by an acute shortage of petrol and diesel, as well as high inflation.
BBC Africa Live: Updates from the continent
In a televised address, Mr Chakwera said the measures would remain in place until the end of the financial year in March 2024.
Some similar austerity measures were announced during the Covid-19 pandemic but had limited impact as they were not strictly enforced.
As part of moves to ease the cost-of-living crisis, the president has asked the finance minister to make provisions for a reasonable wage increase for all civil servants in the next budget review.
He has also ordered a lowering of income tax on individuals in the upcoming budget, to help workers whose incomes have lost value.
The IMF has approved a four-year credit facility worth $174m (£140m), just days after Malawi’s central bank announced the devaluation of the kwacha by 44%.
Analysts suggest the devaluation may have been a condition for securing the IMF credit facility.
Some fear the currency devaluation will only raise prices and potentially worsen Malawians financial woes, as happened a decade ago.
Officials have blamed the economic downturn on external factors, such as a devastating cyclone earlier this year and the war in Ukraine.
Source: BBC
