Malawians digest, welcome back  IMF loan programme

Malawians on social media are describing as the best Easter gift news that International Monetary Fund will resume Malawi’s $150 million extended facility programme which was suspended last year after a ‘cashgate’ scandal involving abuse of state money, a move that has brought donor confidence in the government management of the donor economy.

Minister of Finance and Economic planning and the leader of IMF Oral Williams at the press conference at Capital Hill in Lilongwe on Wednesday (C)Stanley Makuti

Minister of Finance and Economic planning and the leader of IMF Oral Williams at the press conference at Capital Hill in Lilongwe on Wednesday (C)Stanley Makuti

Gondwe and the leader of IMF Oral Williams at the press conference at Capital Hill in Lilongwe on Wednesday (C)Stanley Makuti

Gondwe and the leader of IMF Oral Williams at the press conference at Capital Hill in Lilongwe on Wednesday (C)Stanley Makuti

Some have even likened the death and resurrection of Jesus to the death and hopeful resurrection of the economy which had been on death bed for nearly two years now punishing ordinary Malawians with the high cost of living.

IMF officials said on Wednesday Malawi was declared back on IMF extended credit facility because of good management of domestic finance since September 2015.

The global lender’s leader which assessed Malawi, Oral Williams was all praises for Malawi at a news conference on Wednesday in Lilongwe saying the government worked hard with dedication to pit Malawi back on the International Monetary Fund (IMF) extended credit facility.

“This has come about because of the hard work and dedication by the Malawian authorities to bring back the facility back on track,” he said.

He advised the government to work on bank reconciliations and arrears, saying these are areas the government needed to work hard on these two areas.

Williams said IMF will work with the government on the 2016/17 to ensure that the government spends wirhin its limit.

He said IMF was closely monitoring the drought which has partly paralysed the economy.

Finance minister Goodall Gondwe, who faced calls for his resignation from some quarters of the society due to the ailing economy, was all smiles not because he has kept his job but has managed to fullfill President Peter Murtharika’s dream of getting back the ECF back on track.

“The IMF told us to borrow up to K56 billion in the last six month but we have just borrowed K4 billion,” said the elated Gondwe.

He said the government has managed to mop out excess liquidity in the banking industry which has drastically brought down inflation.

Goondwe said the government will keep on working hard on areas that the IMF expressed concern in a bid to improve the economy, which is, literally, on death bed and might not resurrect with Jesus as Malawians commemorate Easter, the gluesome killing of a man Christians believe is the Son of God.

“The advice we get from the IMF is very important because they provide a very valuable yardstick of how we can manage our economy and we will continue doing well especially on public finance management so that we are not off track again,” Gondwe said.

And Secretary to the Treasury Ronald Mangani said the  on accountability in public expenditure the leadership of President Mutharika was not relenting in that regard and  determined to ensure that cashgate  scandal – which led to donor countries cutting their contributions to the government  doesn’t recur.

Cashgate is the biggest financial scam in Malawi’s history where government officials allegedly exploited a loophole in a computer-based information storage system to divert up to US$250 million from government coffers.

Mangani said the government was doing a lot to safeguard public resources through the Public Finance Management Reform Programme which, among other things, increased compliance with rules and regulations.

He said among other things the government was doing in the context of the Public Finance Management Reform Programme was the requirement that controlling officers report on a monthly basis the expenditures that they had incurred and paid against the funding that would have been provided and generated.

“We monitor monthly, too, the commitments that they [controlling officers] may be making in the system and bank reconciliations are submitted every month and then payroll returns are also submitted every month. We are now at a point where, to the extent, possible controlling officers are being held accountable for every coin that is made available to them,” said Mangani.

Malawi has struggled to grow its economy due to declining export earnings from tobacco and in the absence of aid, which had previously accounted for 40 percent of its budget.

The IMF said it expects Malawi’s economy to grow by 3 to 4 percent this year after expanding by 3 percent in 2015.

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16 thoughts on “Malawians digest, welcome back  IMF loan programme”

  1. zaliro says:

    We made progress by avoiding borrowing now we are moving two steps backwards. We must learn to live within our income. Why do we believe we can grow and prosper through borrowing when we have done the borrowing almost since independence and made very little progress if any. Let us produce and prosper

  2. ben says:

    When we were off track Kwacha depreciates, but when we are on track why is the kwacha not appreciationg. As inflation is just too high, kwacha has to appreictae to bring inflation down

  3. Becks says:

    DON’T BUY FOOD WITH BORROWED MONEY. MALAWI WILL SOONER THAN LATER FIND HERSELF POORER THAN NOW

  4. Vinjeru says:

    The hardships that malawians are facing is unfortunate. Unfortunately, it appears to be a necessary evil. We need to pick ourselves from this position and try to make ourselves no longer foolishly reliant on donors. We have strategists, powerful economic gurus, even leaders what we are lacking is the political will to drive our independence. IMF support is good but if the utilisation of the resource is not properly planned, its not going to benefit us. Mr Good ALL Gondwe, we need to to be strictly accountable for this loan you are bring us. Let us not put the future generation in problems due to the decisions we are making. Remember that we are now paying for poor decisions made by the previous three governments. LETS START DOING THINGS FOR THE NEXT GENERATION OF MALAWI osamangoti ine ndidyapo chani yapa

  5. Mmalawi says:

    It’s a real shame when a nation rejoices on enslaving future generations of Malawians through borrowing. Let’s live within our means and avoid reckless borrowing which only serves to entrench our debt slavery

  6. Ibrahim Taiti says:

    Bravo APM,bravo govt!

  7. phady says:

    The problem in this country is that since 1994 we dont have gorverment but only political parties how come for 50 years we dont have National ajenda that can move out this country from poverty where are we heading to. donor suport up to when if they choose next year to take back their money it means we are going back to our problems we need to work up sleeping up to this day its not work at all.Happy easter to my fellow christians.

  8. Kenkkk says:

    Very good news indeed. Keep it up and well done.

    Now back to recovering cashgated money. That is the crux of the whole good financial governance.

  9. kundes says:

    Welldone Gondwe you are our pride

  10. Kennedy Masasa says:

    Thats A Welcome Move By IMF, This Simply Means That Apm Government Is Back On Trank, Bravo Apm, Bravo Goodal, We Are Proud Wth U Plz We Are Waiting For Salary Increament This 2016/2017 Budget

  11. Maxy says:

    This is nothing to celebrated about. What type of a parent celebrates his family being feed by a neighbour. We should just admit that we have failed to run our own affairs. IMF money come at a steep price which a reasonable person should not celebrate.

  12. Muhka says:

    Peter Mutharika will win in 2019. The writing is clear on the wall. These DPP guys are serious about moving this country forward. Count my word.

  13. Namapanji says:

    Salaries are very low,there has been no promotions in the civil service especially those with low grades since DPP took over the gvt,hence make sure you share us the small cake by raising salaries and release vacancies for teachers.Don’t forget to employ nurses.

  14. mwana nyungwe says:

    Yes good news indeed but will this benefit the common man in the village. Government has been collecting huge Amounts of money through exorbitant taxes imposed on Malawians while the President and ministers are enjoying tax exemptions and many previlages while there are no drugs in hospital. So with the resurfacing of this facility are they not going to continue enriching themselves
    even more forgetting the many poor people out there. What I mean here is we appreciate IMF but please keep a very close watch on these guys they are not people to trust they forced their way into government so cashgatting to them is not a problem they even did before

  15. Boma says:

    Zilibwino

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