Malawi has sold part of its gold reserves and requested a US$120 million loan from the African Export-Import Bank to finance fuel imports, amid renewed foreign exchange shortages and supply disruptions, local media reported Wednesday.
The Nation Publications group reported that the government moved to liquidate gold holdings from the Reserve Bank of Malawi in order to secure foreign currency needed to pay for fuel shipments, citing Information Minister Shadric Namalomba.
According to the report, the authorities used proceeds from the gold sale to make an initial $30 million payment to ensure fuel could be released at ports, as fuel suppliers increasingly demand upfront cash payments in foreign currency.
The government is also awaiting disbursement of a US$120 million financing facility from African Export-Import Bank (Afreximbank), which officials hope will help stabilise fuel imports and reduce acute shortages in the short term.
Namalomba was quoted as saying that external pressures, including the impact of the Iran conflict on global markets, have worsened foreign exchange constraints in the Southern African country, making it harder to secure essential imports.
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The minister did not immediately respond to Reuters requests for confirmation, and officials at both the central bank and Afreximbank could not be reached for comment.
Malawi has faced recurring fuel shortages in recent years, often linked to limited foreign currency reserves and dependence on imported petroleum products. Long queues at petrol stations have periodically disrupted transport and business activity across the country.
The latest developments come after a period in which fuel availability had improved, particularly following policy adjustments and external financial support measures. However, renewed pressure on the foreign exchange market has reversed some of those gains.
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Fuel supply constraints have previously become a politically sensitive issue in Malawi, including during last year’s electoral cycle, when shortages and price pressures affected public sentiment.
The country remains heavily reliant on donor support and external financing, and has been seeking a new programme with the International Monetary Fund to help stabilise its macroeconomic position.
Analysts say Malawi’s continued reliance on emergency financing and asset sales highlights persistent structural challenges, including low export earnings, limited industrial diversification and vulnerability to global commodity shocks.
The situation also reflects broader pressures facing several African economies exposed to fluctuations in global energy prices and geopolitical tensions affecting supply chains.
As authorities move to secure short-term financing, attention is likely to remain on whether longer-term reforms can improve foreign exchange generation and reduce recurring fuel import crises.
