Malawi State House claims ‘return of donor confidence’ milestone for Mutharika and Chilima

Let them waste their time plotting against us, We will spend our time planning for this country. As a party, we have progressive plans for our country- And our plans will conquer our suffering”. Professor Arthur Peter Mutharika, DPP Presidential Candidate, April 2013

A couple of years without donor aid has not been an easy ride for the new government of Peter Mutharika who went into office a year after donors had decided to stop disbursing aid due to the crumbling of the financial system at Capital Hill.

President Mutharika and his Finance Minister Goodall Gondwe

President Mutharika and his Finance Minister Goodall Gondwe

Coming from that background, the recent disbursement of more than K270 billion aid by the European Union (EU) to Malawi signifies a shift of mindset by multilateral and bilateral donors to a Third World country that has been in the spotlight for all the wrong reasons following the Cashgate scandal.

The donors left in 2013 following the siphoning of K22 billion out of government coffers into pockets of politicians and civil servants. The free-for-all plunder came to be known as Cashgate and tainted the image of Malawi world over.

Reacting to such a shameful malaise, donors under the Common Approach to Budget Support (CABS) announced after its review meeting in November 2013 that it was going to delay aid to Malawi. This came as the last nail on the coffin following similar pronouncements by the European Union, the UK’s DfID, and Norway.

The pulling out of donor aid put a strain on the country’s economy whose national budget relies demands 40 percent of donor money. In total, these donors have been withholding some $150 million meant for Malawi’s budget waiting for full macro finance reforms at Capital Hill.

Immediately after taking the reins of power, Mutharika initiated a drive that was meant to restore donor confidence. This was only going to be achievable with an added injection of political will that had been lacking previously. It was incumbent upon the new regime to do things differently and with utmost caution to achieve such a feat.

The Ministry of Finance was quickly positioned to adopt the Aid Management Platform which has in the long run increased transparency of where project aid is going and monitoring how it is being used.

Convincing the donors that their project aid is being used prudently was always going to be a prerequisite of restoring budgetary support in the long run. That task has been achieved in the past year and it comes as no surprise when the EU emerges with this K270 billion project aid.

The return of this agreement between Malawi and EU comes as a result of satisfaction by development partners with the current economic reforms that are been taken by the Peter Mutharika administration.

Other donors such as the International Monetary Fund (IMF) have also been making headway with their periodic review missions which are likely to yield full resumption of aid shortly.

Even in the middle of these review missions, there has still been some good news in the interim with IMF already okaying the disbursement of $18 million under the Extended Credit Facility (ECF) program.

Mutharika has been quoted as saying IMF’s nod is likely to open doors for all the multilateral and bilateral donors to resume full support in the foreseeable future.

True to economic laws, the sound macroeconomic policies executed by the Mutharika government in the 2014/2015 financial year have brought in the stability of the local currency, a situation that sets the ball rolling for expanded economic activity and desirable growth of the economy itself.

To think that these achievements have come about in the absence of donor aid signifies the President’s commitment and acumen in restoring lost glory and win back donor support both at budgetary and project aid levels.

Besides the economic reforms that aim at strengthening public financial management, government has also made tangible headway in dealing with Cashgate cases.

Top government officials have been taken to courts and charged with relevant charges in line with their role in the plunder.

This commitment to see through Cashgate cases is also a catalyst of restoration of trust of donors to Malawi government.

Over 81 people have been brought to court with about 7 convictions while numerous cases are progressing satisfactorily. In addition, 35 accounts belonging to suspects have been frozen and government is closing in on property that was acquired dubiously using the stolen money.

As the dark economic cloud clears, it is foregone knowledge that Mutharika and his government deserve the credit for turning around an economic situation that looked so dire when they entered office twelve months ago. And o f course this is a timely gift to the Mutharika regime for clocking one year in office.

  •  The author is Presidential Press Secretary at  State House
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42 thoughts on “Malawi State House claims ‘return of donor confidence’ milestone for Mutharika and Chilima”

  1. che mbwiye says:

    lets give big hands to peter mutharika and chilima.well done,keep it up.

  2. BigMan says:

    Excellent article

  3. Zanimuwone says:

    Fufuzani 90 billion ndipamene a yamba kuti thandiza. Kodi ndalama zofufuzira zija mwazichitanso cash gate.

  4. straight Talk says:

    U cannot give the whistle to the supporter to man the game. Palibe cha nzeru yapa. Western donor community haven’t resumed the budgetary support showing that nothing tangible done yet. projects have been funded up to date. Several money gates at all levels. Biasness in corruption cases. Nothing on the ground is showing that u r doing anything on the economy. Baadyani misonkho yathuyo bola kuzamafa mutalapa.

  5. meta says:

    APM ndi deal. keep it up our president proud of you. God bless you always, wa nsanje alire. 2019 u wl also carry the day

  6. Kakado says:

    Everyone is aware that this is surely a milestone, not only for mutharika and chilima, but Malawi as a nation. W e are just hopeful that things will get even better in the near future.

  7. Mucracker_2 says:

    To Ambere Chile,
    Truth is always truth irrespective of the mounth that has spoken it. What is wrong with Viola saying it? Nsanje amalawi wina asachite zabwino mwati koma akanakhala a uje! Mwauponda. Tayambapo ife enanu mubaphulika!

  8. Mucracker_2 says:

    Simunalire mwangoyamba. Mpaka muzimangilira

  9. Mucracker_2 says:

    This story is BAD NEWS TO ALL MUTHARIKA HATERS. My president is performing and this isn’t going well with the opposers. BRAVO PROFF PETER MUTHARIKA

  10. mwahana says:

    Donor aid was never stopped and this has been the song by donors. WHAT was stopped was channeling money through government coffers and it remains the same.So What is the author of this article trying to tell us?????? If you have been bribed to corrupt our minds please EAT those bribes quietly instead of FOOLING yourself!!!!!! WHO IS FOOLING WHO????

  11. chaiwone wawo says:

    What do we expect a presidential press secretary to write about the president? would he write against the president?

  12. CHEJALI says:

    DPP anthu oyipa inu pano mukuti tigule ma member ship card ku roadtraffic sikutibela anthu osauku uku???????????

  13. mbani says:

    That’s good coz Civil Servants ve given u 21 days

  14. Kadakwiza says:

    Malawi need investors for development, not donors. So lomwes just shut your big mouths. Because you talk too much. Donors don’t create jobs but investors.

  15. Shonai says:

    Peter woye.KEEP ON.Osachedwa Ndi mbuli zikubwebwetazi.They think you are playing.Iwo ndiye anzeru.

  16. kenkkk says:

    Glorifying the return of donor confidence,is this not the same as glorifying poverty, mr viola? Am sure our dear friend Malawi comical Ali will agree.

    Having said that, you seem far much better than Kondwani. A change for the better so far from this govt.

  17. zaziiiiiiii, zamkutu, zamisala apa

  18. TrueFact says:

    Pay appreciation where it is due. Congrats HE & Team. Nzungu sapereka ndalama chisawawa. This simply means donors have see positive fruits in governance & economic prudence.

  19. Trevor Manyi says:

    Cashgate part 3

  20. phwado says:

    Yet you were challenging that you can do without donors!Empty skulls!

  21. Trevor Manyi says:

    Straight into Mathanyulas pocket

  22. Kenkkk says:

    Congratulations for the govt receiving some donor confidence. But we also need to distinguish between donor confidence and the confidence of ordinary Malawians. Do they have the sAme confidence in this govt as donors are now showing?

    Also we need clarification as to the donors money currently being given, is it for budgetary support? If not then until donor budgetary support resumes, then we wil still have some doubts as to the return of donor confidence in the govt.

    Or is this donor money being given the general aid money which was never withdrawn anyway by donors? If it is the usual economic or development aid money, then the govt will be telling lies about donor confidence being back.

    If donor budgetAry support has resumed, then congratulations but we should keep on with our zero aid budget. That is the only way we will be independent. Any budgetary support donor money should be a bonus.

  23. MKB says:

    This is useless unless you tell us that the taxes will be revised downwards with resumption of donor aid. Mxiiew

  24. chekatapwito says:

    Nanu a viola nde chani chimenecho lelo mwasiya chimene mumkati chilungamo chija chifukwa cha ka Uchi akupakani mmilomoko ngati abale anuo Chepitala ali a chilungamo bwanji ikwakanika nkhani ya MSB yomwe akufuna agulitse motchipa bwanji osammanga muli ndiye mukunama apa kuti amanga anthu angapo. Ndi Joyce Banda anamanga anthu amene aja osati Apresident anuo ai

  25. mulomwe says:

    Give credit where it is due very good article zowona xokhazokha guys let accept what’s in the article. A Malawi tiphinzire kubvomereza zinthu odsmangotsutsa zilizonse

  26. Mphwacge says:

    The donors never stopped giving aid to Malawi. What they stopped doing is contributing to the national budget. This current EU aid is nothing new, but it does not contribute to our budgetary shortfalls. Mr Viola, please get educated and understand these differences rather than confuse people.

  27. Kampalapata says:

    The problem with this nation is that it is overwhelmed with ” a mfiti” that see nothing good in what others try to do. If the whole so called ” pastor” turned politician can not difference what is evil against what is good who else? If he fails to respect the leadership by still claiming that the presidency was stolen from him, who else? Look at his “disciples” in the name of kalabwi, Face Born and the Salima kahuna who wants adzukulu to die of hunger by only eating during weekends. Any way it may be the MCP’s strategy of preserving food when they take over the executive arm of government. It is indeed the last days when you see the Reverend heading a party that promotes legalisation of chamba for the nation to get mad. Surely this was discussed by the party caucus. Nanunso kubetsa mavoti choncho bwanji how about government resources. Will they be safe under you. Just forget of taking over the mantle. Just follow Salanje.

  28. Beloved says:

    Well done bwana president and your goverment .

  29. Concerned Citizen says:

    But this beggar syndrome should not be celebrated.

    Why? Celebrating that we are certified beggars and have no clue as to how to get out of this mess on our own? Why?

    All the great minds we have, yet we celebrate the state of poverty and openly admit it? This is a great shall and we should all be embarrassed.

    Imagine a taxpayer in another country having to pay for our under productivity and overconsumption? A great shame.

  30. ujeni says:

    Childish propaganda.

  31. Patriot says:

    The worst of all gouvernment since since 1994.
    DPP led gouvernment is Broke and Bankrupt.
    12 months down the line, marikisi zero.

  32. Ambere chile says:

    I’m not surprised this article was written by the president’s press secretary. Load of bull. The DPP government is the most corrupt government Malawi could ever wish for. The financial plunder started during the Bingu regime. Bingu, APM and the rest of the kingpins were all involved. This trend has continued with the current government. MSB sale to shield DPP sympathisers from paying back the loans they owe the bank. Where did the money you paid Jumbe for a job he never did come from?

  33. makito says:

    Celebrating nothing. Shaa. Malawi.

  34. Julie says:

    Nothing worthy news here, chief plunders in the field even if donors pump 1 Trilion dollars to Mw

  35. smadav says:

    Umphawi umapangisa munthu kukhala chizende. A Viyola chizende chakufikapo.

  36. Kizito says:

    a Malawi kodi bwanji osamayamika zina zikayenda bwino. A people with a negative attitude cant appreciate good things cant progress. the leaders we have (that is both ruling and opposition) must celebrate. The ruling for innitiating things and the opposition for providing checks and balances.

  37. mtumbuka 1 says:

    That’s why this country will not go anywhere because of bootlickers like Gerald viola. So you have been forced to write this bullshit here just for you to pocket a few kwachas? What about the future of your kids and your grand kids? According to you Mr viola your dpp and your mutharika will rule this country forever but let’s wait and see.

  38. Mungakane Muona says:

    Namu namu thumb up Mr secretary

  39. Ayatollah Khameni says:

    The fact that this article is written by Gerald Viola lenders its credibility useless because its obvious that it will be one sided. I want even bother reading it.

  40. Kalithera says:

    Zoona wakulu, nanga Kape Ntata ati bwa ? Chindere chakufikapo

  41. mathanyula says:

    Why DDP u don’t want to talk about K92B if u are serious with corruption?

  42. namarokoro says:

    If the information provided is true, then congratulations Bwana Mutharika!

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