The World Bank has advised Malawi government to ensure effective use of limited financial resources on areas that are key for the transformation of the economy.

A new edition of the World Bank Malawi Economic Monitor (MEM) says Malawi should channel resources on areas that have the most impact on growth, job creation and poverty reduction.

The 9th edition of the MEM ‘Charting A New Course’, that was launched on Tuesday in Lilongwe, observes that Malawi will need decisive leadership and bold policies to surpass current economic achievements.

The MEM says in the short to medium term the country should focus on building strong economic and institutional foundations with supportive macroeconomic policies and effective public service delivery.

It also encourages the country to unlock the potential of the private sector to create productive jobs with higher income levels and ensure food security.

The MEM has also advised the country to invest in human capital by improving education and reducing fertility rate and stunting and resilience.

World Bank Country Manager for Malawi Greg Toulmin said Malawi needs to focus on ensuring that young people can make productive and worthwhile contributions to the economy.

Toulmin said the government should also take bold steps to address corruption which has negatively affected the country’s economic transformation.

“Authorities therefore need to take bold actions to implement actions that address factors that have historically derailed progress such as corruption, expenditure overruns, unattractive business environment, inefficient energy and water services, high fertility rates and vulnerability to weather and climate shocks,” Toulmin said.

The MEM primarily provides an analysis of economic and structural development issues in the country.