On October 4, 2025, Peter Mutharika was sworn in as Malawi’s President following the DPP’s victory in the September 2025 general election — returning him to State House after a five-year absence. The cabinet was announced on October 28, completing the formal transition from the Chakwera administration.

For international companies operating in or considering entry into Malawi, a change of government is a moment to reassess regulatory relationships, understand policy continuity risks, and identify where the new administration’s priorities create opportunity.

What changed at the top

Mutharika previously served as President from 2014 to 2020. His first term was marked by GDP growth of 4–5% annually in its early years, before the COVID-19 shock and the 2020 election annulment that removed him from office. His return brings a government with prior experience of the investment climate — and prior relationships with business, multilateral institutions, and regional partners.

The incoming cabinet includes a mix of returning DPP figures and new appointments. The Finance portfolio — critical for investors watching fiscal and monetary policy — went to a technocrat with IMF and World Bank working experience, signalling continuity with the reform program Malawi has been operating under since the 2023 ECF.

Policy continuity vs. policy change

Several elements of the previous government’s reform agenda appear likely to continue:

IMF ECF program. Malawi’s Extended Credit Facility was negotiated under Chakwera and is the structural anchor for fiscal discipline. Mutharika’s team has publicly committed to maintaining it. Abandoning the program would trigger a financing crisis — the new government has no incentive to do that.

Investment promotion framework. The MITC mandate, the SEZ Act (2024), and the Companies and IP Centre Act (2025) are legislative achievements that the new government has signalled no intention to reverse. These are popular with the business community and with donors.

Energy sector. The Mpatamanga hydropower project (World Bank, $1.5 billion) and the AfDB/EAIF grid rehabilitation program are multi-year commitments financed by institutions. They will proceed.

Areas of potential change:

Agricultural subsidies. The Farm Input Subsidy Programme’s design — who is eligible, how it is administered, which suppliers are contracted — is politically sensitive and tends to change between administrations. Companies in the agri-inputs and fertiliser sector should expect policy adjustment.

Parastatal leadership. Boards and CEOs of state entities (ESCOM, ADMARC, MITC, MRA) are typically refreshed under new governments. This creates transition uncertainty in dealing with state counterparts for the first 6–12 months.

Land allocation priorities. Under MITC’s mandate, which investment applications receive land allocation can be influenced by ministerial priorities. Companies in land-dependent sectors should understand who the relevant decision-makers are under the new structure.

What this means for active investors

Companies with existing operations should expect normal transition friction: new contacts to build at ministerial level, potential delays in approvals as officials settle in, and some uncertainty about inherited commitments. This is not unusual and does not represent fundamental risk.

Companies in investment preparation should factor in a 3–6 month slower period for regulatory decisions as the new government establishes its machinery. Building timelines to early-mid 2026 for approvals initiated in late 2025 is prudent.

The longer view

Mutharika’s return is, in structural terms, more continuity than disruption. Malawi’s investment framework has been built up through multiple administrations and is underpinned by multilateral commitments. The real variables are implementation speed and personal relationships at senior levels — both of which take time to establish after any transition.

Sources: Nation Online, Nyasa Times, Reuters, Malawi24.