Germany to support Malawi with K4.7 billion
Germany will make its decision regarding the suspended aid by March next year after the International Monetary Fund (IMF) board meeting and assessment of progress Malawi will have made on its action plan, a statement has said.
A statement released on Friday after the Minister of Finance Maxwell Mkwezalamba led a Malawi delegation to Berlin to meet with Germany’s Federal Minister of Economic Cooperation and Development Dirk Niebel and his senior officials, has also said Germany will disburse, 8.5 million euros (about K4.7 billion), by the end of the year to support Malawi Government’s current efforts in improving public finance management.
On November 7, donors under the Common Approach to Budget Support (Cabs) banner announced the withholding of $150 million (about K60 billion), due to financial mismanagement that has rocked the Capital Hill. Earlier, the International Monetary Fund (IMF) announced the suspension of aid over same concerns.
But during the visit, Germany said it will provide support to governance institutions, including the National Audit Office, to build their capacity.
Germany will disburse €5.0 million (about K 2.76 billion) to support maternal and new born health.
Niebel appreciated Malawi Government’s efforts aimed at addressing weaknesses in the public finance systems in Malawi and the measures that have been put in place to address the fiscal gap emanating from the delayed budget support.
He also shared Malawi’s concerns regarding the likely negative socio-economic impact of the delayed budget support.
