Malawi begs Japan for more aid: Finance Minister says K1.3bn grant will not be ‘Cashgated’

Minister of Finance, Economic Planning and DevelopmentGoodall Gondwehas asked Japanese Government to consider increasing financial assistance to Malawi on Economic and Social Development Programme.

Finance Minister, Goodall Gondwe and Japanese Ambassador to Malawi, Kae Yanagisawa exchange grant aid documents.-Photos Abel Ikiloni, Mana

the signing ceremony for the Economic and Social Development Programme with the Japanese Government on January 17, 2018 at Capital Hill in Lilongwe.During the Signing ceremony Malawi`s Finance Minister, Goodall Gondwe and Japanese Ambassador to Malawi, Kae Yanagisawa represented their countries.

Speaking during the signing ceremony of 200 million Japanese Yen (KI.3 billion) Grant Aid on Wednesday in Lilongwe, he observed that Japan’s financial assistance to Malawi has since been reduced.

“Japan used to give us more money in the past, but now it has been reduced,” Gondwe noted.

The request comes amid Japan’s dwindling financial assistance to Malawi through the said window over the years since 1988 when the country started benefiting from the grants.

The resources have been utilised to assist a wide range of small and medium enterprises (SMEs) to acquire, through loans, various operating or capital goods, plant or equipment purchased from abroad.

The Minister attributed reduction of the financial assistance to low and non repayment of the loans acquired from the package by some small and medium entrepreneurs in the country.

He explained that the development led to the disappointment of the donor.

Gondwenoted that once the assistance is increased it would enable the country to implement various projects without difficulties and pledged to properly account for the funds and usethe resources in a transparent manner.

“I would like to assure Your Excellency that on our part, we will use the assistance solely on the intended purpose,” he assured.

The Finance Minister appealed to beneficiary companies that still owe the programme money to speed up payments.

“Please note that the new grants to the country will depend very much on how quickly beneficiary companies pay back their loans,” he added.

Japanese Ambassador to Malawi, Kae Yanagisawa said the Grant Aid is intended to compliment the country’s efforts to promote economic and social development and eliminate poverty.

The Ambassador said the grant would be used by Malawi Government to procure goods and equipment to support small and medium enterprises (SMEs) in enhancing their business operations.

The grant, previously known as Non-Project Grant Aid, has been provided to the country since 1988 and has now totalled US$ 45 million (K33 billion), including the just signed agreement of K1.3 billion.

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GUCCI GRACE
Guest

A SHITHOLE COUNTRY LEAD BY AN ASSHOLE pRESIDENT

JOE
Guest
Patriotism gets out of me whenever I hear stories of this calibar. It really pisses me off to see my country which has all it takes to do better but fails to do so and eventually relying on begging. It has taken ages since we obtained our independence but I still see nothing to point my fingers at as a development. What the hell we think we are doing if I may ask. At times, the challenges we face forces me to think that its good to call the white men to govern us once more since we have literally… Read more »
Tpain
Guest

up to the point of begging typical of shithole nations

chiukepo
Guest

pay the people well. its just a simple arithmetic of income and expenditure versus real life costs. will not cashgate but siphone

Baba
Guest

Why do Malawians like to demean themselves? Why call something that happens in many countries, Begging? and how did you come to that conclusion?

The problem with life is, if the tell yourself enough time that you are not as good as the next person, you become just that.

Hlabezulu Ngonoonda
Guest
As long as there is continual thirst for illicit enrichment among senior public officers who happen to be controlling officers and that accounting personnel in government institutions continue to strategise how to steal both public and donor funds, trust from donors will continue to evaporate. Look now. Small and medium entrepreneurs in the country are not repaying loans acquired from donor package, and this has spurred Japan to reduce aid assistance because of the failure to recoup loans. It is time that controlling officers and accounting personnel show off their professional skills in so far as transparency and accountability is… Read more »
Betsie
Guest

I thought the president said the economy does not require us to beg from donors anymore? Eish.

benjones
Guest

THE MONEY IS ALREADY CASH GATED.

Nachisale
Guest

May i know who is going to manage these funds?Is Medef of Ministry of Finance?

com rade
Guest

we are truly a shithole, shithouse country, we can,t refute that!!!!

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