Overview
The first three cases of COVID-19 were confirmed on April 2, 2020. A moderate increase in cases followed through end-May, when the number of cases accelerated and reached a peak in early-July. Malawi has faced a severe second round of COVID infections exceeding the first wave in early 2021. The number of positive cases of COVID-19 increased from 6,028 to 33,481 between December 2020 and end-March 2021, though daily positive cases have started to decline since mid-January. The authorities continue to expand local COVID-19 testing capabilities—with assistance from development partners (DFID, UNICEF, and the Global Fund). In addition, Malawi has been approved for participation in the COVID-19 Vaccines Global Access (COVAX) Facility. In this context, the authorities published in February 2021 Malawi's COVID-19 Vaccine Deployment Plan. Malawi started vaccine innoculation in the second quarter of 2021 and plans to cover 20 percent of the population (3.8 million people), starting with high risk groups. In addition, 100,000 doses covering 0.5 percent of the population have been secured through the African Union. As of early June 2021, 357,650 people (out of first round target of 503,600 people) had received vaccination.
To curb the spread of the pandemic, on April 4, 2020, the government instituted a partial lockdown and all international flights to Malawi were suspended except those carrying essential health & other supplies and returning Malawian citizens or residents. However, since September 1, some flights have resumed and a two-week mandatory self-quarantine for people arriving from areas highly affected by coronavirus disease remains in effect. These measures combined with spillovers from the global slowdown, border closures, and economic disruption in neighboring countries have slowed domestic economic activity. As a result, growth is expected to decline to reach 0.6 percent in 2020 and 2.2 percent in 2021 (0.4 and 0.3 percentage points below projections in IMF Country Report 20/168.
COVID-19 Restrictions
Movement Restrictions
- Is a curfew in place? No
- Are there restrictions on intercity or interstate travel? No
Transportation Options
- Are commercial flights operating? Yes
- Is public transportation operating? Yes
- Public transportation options are extremely limited in Malawi. Those that operate are small privately owned minibuses, covered motorbike taxis, and bicycle taxis. Minibuses are expected to limit passengers and require mask usage and some social distancing.
Economic Measures
Key Policy Responses as of June 4, 2021
FISCAL
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The government’s response plan includes US$39 million (0.3 percent of GDP) in spending on health care and targeted social assistance programs; this includes hiring additional health care workers. In addition, tax waivers are being granted on imports of essential goods to manage and contain the pandemic. An Emergency Cash Transfer Program of about $50 million (0.5 percent of GDP), mostly financed by development partners, was implemented during May-November.
MONETARY AND MACRO-FINANCIAL
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The Reserve Bank of Malawi reduced the policy rate by 150 basis points to 12 percent. The domestic currency Liquidity Reserve Requirement (LRR) has been reduced by 125 basis points to 3.75 percent (aligned with the foreign currency LRR) and the Lombard Rate has been reduced to 12.2 percentage points, 0.2 percentage points above the policy rate. An Emergency Liquidity Assistance (ELA) framework has been introduced to support banks in the event of worsening liquidity conditions and to provide support to banks on a case-by-case basis. However, financial sector buffers, including banks’ capital and liquidity buffers, are expected to counter risks to the banking system. To support small and medium enterprises (SMEs), commercial banks and micro-finance institutions will be, on a case-by-case basis, restructuring SME loans and providing a moratorium on their debt service until end-June 2021. Fees on mobile money transactions have been temporarily waived to encourage cashless transactions.
Civic Freedom Tracker
STATE OF DISASTER
The order establishes a one-month "state of disaster" due to the coronavirus. Among other things, the order prohibits gatherings of more than 100 individuals. (See primary source or citation here)
Type: order
Date Introduced: 20 Mar 2020
Issue(s): Assembly, Emergency
PUBLIC HEALTH (CORONA VIRUS PREVENTION, CONTAINMENT AND MANAGEMENT) RULES
The Minister of Health imposes a nationwide lockdown that prohibits all individual movement, with limited exceptions. Individuals in need of an essential service outside of their locality are required to obtain a permit from their local council. All gatherings of more than ten people are suspended. The Malawi Defence Force, the Malawi Police Service and the Department of Immigration and Citizenship Services will be deployed to ensure strict compliance with these measures. (See primary source or citation here)
Type: regulation
Date Introduced: 8 Apr 2020
Issue(s): Assembly, Movement, Militarization
Source : ICNL
