Malawi government says it has only managed to raise $1 billion of the $4.5 billion required to fully implement the ongoing Economic Recovery Plan (ERP).
This is contained in the ERP’s implementation strategy which notes that other likely sources of financing for the ERP are regional and international financing initiatives.
“The estimated cost for the successful implementation of the Economic Recovery Plan is $4.5 billion. Out of this amount, $1 billion has been secured from government and various donors leaving a resource gap of $3.5 billion” the report reads in part.
Minister of Economic Planning and Development Ralph Jooma stressed that the ERP will largely be financed through the annual national budget.
“Infrastructure programmes are in line with the Public Sector Investment Programme and Public Private Partnerships (PPPs) for investment programmes are being encouraged,” said Jooma.
He said although limited resources and lack of capacity of key institutions are some of the challenges, there is clear articulation of institutional responsibilities for task implementation.
“Measures that have been adopted to curtail risks and ensure sustainability of results include ensuring comprehensive financing strategies, ensuring government ownership and leadership at different levels, timely and effective management plus technical support through sector working groups,” Jooma said.
The ERP is focussing on growing selected sectors of energy, agriculture, tourism, mining, information communication technology and transport infrastructure.