IMF gives Malawi K29 billion for budget support: Mwanamvekha says ‘positive development’

Malawi will finally get resources amounting to US$40 million (about K29 billion) from the International Monetary Fund (IMF) in direct budget support, Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha has announced.

Mwanamvekha: We hope donors will do the same
Mwanamvekha: We hope donors will likely resume their budget support to Malawi.

This will be the first time in six years after the IMF suspended support in 2013 following looting of public funds at Capital Hill dubbed cashgate.

Speaking Saturday afternoon during a media briefing at Capital Hill in Lilongwe, Mwanamvekha said the IMF Executive Board completed and approved the second and third reviews of the three-year arrangement under the Extended Credit Facility (ECF) for Malawi.

“Following this approval, the IMF will disburse resources amounting to US$40 million (approximately, K29 billion) to Malawi by the first week of December, 2019.

“This… is a clear signal by the IMF of their faith in the Government of Malawi’s economic management and policies which have resulted into continued strengthening of this country’s economy in the midst of negative shocks and vulnerabilities,” he said.

The minister was flanked by the Reserve Bank Governor Dr Dalitso Kabambe and the Secretary to the Treasury Cliff Chiunda.

“This approval has come at a time when government and the people of Malawi are focused on a growth path to take advantage of the macroeconomic stability that continues to prevail in this country,” he further said.

The visibly excited Mwanamvekha described the IMF’s decision as historical and unprecedented considering what Malawi has gone through recently ranging from natural disasters to elections; all of which are heavy costing on their own.

“This money will go directly to support our Budget and will help greatly in the macroeconomic stability of the economy,” Mwanamvekha said.

He hailed President Arthur Peter Mutharika “for his stewardship and visionary leadership in taking Malawi to this level of macroeconomic stability.

“Our cooperating and development partners have now trust and confidence in working with Malawi and thereby supporting its development efforts.”

Mwanamvekha further said the country expects that the IMF’s approval of the second and third reviews will have a strong signaling effect to other donors to resume budget support to Malawi.

On concerns about the rising debt and other negatives, he said government will continue with fiscal policy consolidation to ensure that public debt is clearly brought on a downward trajectory.

“Already, government has commenced recording positive outcomes from its domestic revenue mobilisation efforts that have seen the Malawi Revenue Authority (MRA) meeting targets,” Mwanamvekha said.

On his part, Kabambe said the news is exciting for a the nation as it will ensure that the country’s macroeconomics are well anchored leading to a stable exchange rate and catalyse other development partners to open their taps for direct budget support and other financing.

“This will also help in job creation and assist government in making decisions for the intelligent investment in other sectors of the economy,” he said.

Mana/cc/mcm

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Tariq
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Tariq

Its not a gift! Its a loan. The IMF is a predatory lender. They don’t do charity. This is utterly stupid to think we can carry on like this. And thr money will be stolen anyway. But the loans will have to be paid. The rich will enrich themselves and the poor will repay the loans at the expense of good schools and housing and healthcare. Bullshit. Fuck Mutharika.

Bashir
Guest
Bashir

Wow, more money for the looters and black and brown GUPTAS

Don
Guest
Don

Simple logic is IMF is a bank that lends money to countries they blackmail. This is a loan that will be paid with interest and with so many conditions on how to spend it. IMF does not work for the interests of their borrowers but themselves as a profit making bank. It’s high time we started celebrating loans and start using the gigantic amount of taxes which can develop our country than celebrating loans that these white people hoodwink us into believing that they are doing us a favour when the opposite is true. If the government stopped stealing our… Read more »

Khima
Guest
Khima

Congratulations GoM keep it up dziko laling’ono ili losavuta kulikonza…

Tizanka
Guest
Tizanka

Mukukwiya ndi dziko lanu lomwetu. kkkkkkk There is something that the IMF is telling us

Nicholous
Guest

You will not touch this grant for another government is coming.

Chiyabwe
Guest
Chiyabwe

Zouza mabulutu achilhomwe anzanu izi. When was the IMF a money-giving institution?

Post
Guest
Post

What a tribalist you are. Actually it’s a reflection of your ignorance.

Chiyabwe
Guest
Chiyabwe

Look who is talking about tribalism! All of the three top guys in this article (Mwanamvekha, Chiunda and Kabambe) are lhomwes and were appointed for being such……FACT!
IMF does NOT give out money…….FACT!

Dispute that and show me who is a mbuli!

Nasingwe
Guest
Nasingwe

ayamba kusamba ndi kunenepa mhu.
kale lija bwa!!!

Shonai
Guest

Analysts????????? They are good at quick analising.Please for the first time leave our popular gelous ,kuipidwa,kunyamsidwa culture.Tell the nation what signal IMF is giving.