Malawi gets K42bn loan for roads: World Bank, EU give 20 conditions for budget support

Malawi Government has signed a loan agreement with the World Bank for $69 million (about K42 billion) to be used for the improvement of the country’s main roads.

MMalawi's finance minister Goodall Gondwe

MMalawi’s finance minister Goodall Gondwe

Malawi's finance minister Goodall Gondwe

Malawi’s finance minister Goodall Gondwe

World Bank country manager Laura Kullenberg said the funds have been availed to Malawi from International Development Association (IDA) to ease the movement of goods and people.

The money will also be used for the upgrading border posts to facilitate regional trade.

The programme will focus on M1 Road with several sections, mostly in the Northern Region, set to be rehabilitated.

Minister of Finance, Economic Planning and Development Goodall Gondwe said the programme would also support feasibility study to assess options for and supporting the establishment of a National Single Window facility to promote trade facilitation.

Meanwhile, the World Bank and the European Union (EU) have asked Malawi to meet 20 conditionalities if they are to resume direct budget support.

Gondwe told Parliament on Wednesday when he presented a statement on the State of the Economy in Parliament, saying chief among the conditions from the two Western institutions is the tabling of the Access to Information (ATI) Bill, elimination of ghost workers in the public service and reforms in the Farm Input Subsidy Programme (Fisp).

According to Gondwe, a large number of conditions “have been agreed”, saying government “will have to satisfy before they can disburse the budgetary support that has been pledged.”

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22 thoughts on “Malawi gets K42bn loan for roads: World Bank, EU give 20 conditions for budget support”

  1. Njobanunu says:

    Non of the above listed conditions are tough but K577 billion yimene sakuiwululayo eeiish…!!! including the enquiry of ACB official-Njauju(late)

  2. Chitonde says:

    Malawi ! why r u making decions of bollowing those amount of money? does it shows that the government has got no money? no no no, How did u managed to bought Expensive Cars? Eeeesh… Mulindi podzabwezera ndalamazo?

  3. Mulakho says:

    From my engineering knowledge $69 million is peanuts. A basic tarred road costs $1 million per kilometer. $69 million is just 69 km, and that’s if DPP will not steal some of the money to buy whiskey.!the M1 road is very long and this is peanuts even if it’s just for renovation. This money should go to feeder roads that connect farms, villages and tourist areas to main roads

  4. Kenkkk says:

    Why are you not giving us the list of the 20 conditions so that we know and analyze them? You keep telling us one condition at a time, one condition today, another condition next day, should we wait a month for us to know the full list of the 20 conditions?

  5. Chingolopiyo says:

    Malawians, this Goodwal is busy borowing, am not sure if these funds will be used properly, our kids and grand kids wii carry heavy burdens of servicing these {never used} loans. Nyasatimes, we need a list of these 20 conditions please.

  6. utitiri says:

    Infact Mr Goodal Gondwe struggles to stay awake in the office, I think we r overusing him, we need to get somone energetic to take over the mantle.

  7. Sindi says:

    Did we have to wait for donors to tell us that we are very very wrong on Fertilizer subsidy? That we need ATI bill? Ghost workers? Come on government, stop being childish. What about the 577 billion issue? Why are you not talking about it as one set condition.

  8. che Ballotelli says:

    borrow borrow borrow.. who gets to service this loans? my taxes i guess. mukatelo muzibenso ndalamazo.. agalu.

  9. chizamsoka munthali says:

    20 conditionalities ndi boma la Dpp silikwanitsa makamaka Access to information bill iyi apa nde pakhota nyani mchila ndithu

  10. Kangaude says:

    A Goodall Gondwe anyamulamo chani mu brief case. Ndadabwa kwambiri simuli ma dollar mmenemo. Alibenso bodyguard, mmuseche pa gate akamatuluka. misewu sitiyiona itamangidwa yina.

  11. Eugene says:

    Big mistake, dpp will use for whisky and pwevupwevu

  12. Ndekuti zomwe anena azunguwa kut ma bill ngati ATI bill ayipase Kaye ndie apeleka chithandizo zikumveka et koma akanena ma CSO ndekuti sizimveka kkkkkkkkkkkk ma donor akazati MK577bn ikambilidwe azavomelaso kkkkkk alhomwe alhomwe! Nophiyaaaa

  13. chikuni says:

    i do not get this, why borrow all that money n use it for rehabilitating roads when ndi inu nomwe omwe mumati we shud be a producing n not a consuming nation.. mukufuna tizazutike kubweza zingongolezo inu muta tsamila dzanja.. why cant you invest that money in production an exporting progects n build misewu mukuinenayo with the surplus we get from that… one thing I know ndi ti nzelu tanga tochepati is that munthu sutukuka ukamabweleka ndalamu nkukagula trouser or nsapato ya nyuwani but only when u wisely invest that money n by nsapato ya nyuwaniyo with the proceeds you get from ur investment… this govt is failing us somehow

  14. Wachikulile says:

    Malingana akulandila ndalama kuti adyiika mmatumba ali bwino bwino

  15. nchwinchwinchwi fwe fwe says:

    Same donors you were pelting stones at during a rally in Mangochi, have now given you other conditions and you are smiling saying you will meet the conditions. Funny govt!!! Why not tell them to hell with their conditions? Midyomba mumaipezelera bwanji kaya its because 99% of midyomba are illiterate. Bingu used to say stupid things in Mangochi, likewise Mathanyula and they clap hands. Atupele wakwatidwa ndi Mathanyula, you clap hands, shame.

  16. Zomba boys says:

    Wakula nkuluyu koma poti ife a Malawi sitifuna kupuma pa tchito, pajatu timadikila kuti azatigulire Coffin.

  17. chidumayo says:

    Gondwe looks older than his thinking capacity.

  18. Tina says:

    That’s a lot of money why only one road is mentioned here. Countability required

  19. ?? says:

    Komaatu bwino ndingongole zanuzi izi Malawi azamangidwa tsikulina. komaxo a Goodall chikwama chimenechi si chikupitaxo kwanu ichi hahahaha.

  20. Abale,mwati a Gondwe wa ali bwinobwino ndi mphanvu komanso nzelu zoti akhoza kuyendetsa unduna ofunika ngati umenewu?
    Kaya mwina ine ndikumaona udyo.

    1. XXXXXXXXXXXX says:

      He is fine and still strong for his age. I think he is a committed guy who does everything possible in the midst of economic calamity. But its time to rest for the big man otherwise the current situation is a healthy hazard.

    2. drogba says:

      Iweyo ukufuna chani??

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