Malawi Government has signed a loan agreement with the World Bank for $69 million (about K42 billion) to be used for the improvement of the country’s main roads.
World Bank country manager Laura Kullenberg said the funds have been availed to Malawi from International Development Association (IDA) to ease the movement of goods and people.
The money will also be used for the upgrading border posts to facilitate regional trade.
The programme will focus on M1 Road with several sections, mostly in the Northern Region, set to be rehabilitated.
Minister of Finance, Economic Planning and Development Goodall Gondwe said the programme would also support feasibility study to assess options for and supporting the establishment of a National Single Window facility to promote trade facilitation.
Meanwhile, the World Bank and the European Union (EU) have asked Malawi to meet 20 conditionalities if they are to resume direct budget support.
Gondwe told Parliament on Wednesday when he presented a statement on the State of the Economy in Parliament, saying chief among the conditions from the two Western institutions is the tabling of the Access to Information (ATI) Bill, elimination of ghost workers in the public service and reforms in the Farm Input Subsidy Programme (Fisp).
According to Gondwe, a large number of conditions “have been agreed”, saying government “will have to satisfy before they can disburse the budgetary support that has been pledged.”