Mwanamvekha has another good news from donors: World Bank approves support to Malawi

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha who has expressed optimism for  possible resumption of direct budget support has another good news that World Bank board of directors has approved Malawi Social Support and Resilient Project $ 125 million grant.

The development comes when Mwanamvekha is expected to host  a high-level African Development Bank (AfDB) dialogue mission this month to assess seven projects Capital Hill wants the Abidjan-based bank to bankroll.

AfDB acting director for southern Africa region Josephine Ngure, will discuss a road map on how Malawi and the bank can accelerate the delivery of the rest of the identified projects, among other developmental issues.

Mwanamvekha said the donor confidence is coming following the  positive signal the International Monetary Fund (IMF) which it has given to many of Malawi’s development partners.

“Major development partners continue to have confidence with Malawi President Arthur Peter Mutharika with continued financial support for various projects in Malawi trickling in,” Mwanamvekha pointed out.

In November 2019, Malawi passed IMF test as reflected by the fund’s latest approval of resources amounting to $40 million (about K29 billion) to support Malawi’s reconstruction efforts in the aftermath of the devastating Cyclone Idai.

AfDB  also said it was encouraged by Capital Hill’s progress as reported by IMF, especially on the state of the economy.

European Union (EU) has also  given Malawi K18 billion grant to support its Public Finance Management Reforms dubbed ‘Chuma cha Dziko’ Programme.

And World Bank  is also now living up to its assurance of resumption of budget support to Malawi.

In 2013, donors suspended direct budget support to Malawi after revelations of abuse of public funds dubbed Cashgate in which civil servants and some private sector businesspersons connived to loot public funds through Integrated Financial Management and Information System (Ifmis), the Malawi Government’s electronic payment platform.

Before suspension of direct budget support, donors were injecting up to 30 percent into Malawi’s recurrent budget and at least 85 percent of the development budget.