Ministry sets K2 billion as projects threshold

Ministry of Finance, Economic Planning and Development has set $5 million (about K2 billion) as a threshold for project support administered through the country’s systems from development partners.

This is according to the new Development Cooperation Strategy (DCS), launched in December last year, which the Ministry of Finance is disseminating to local councils across the country.

Speaking in Mzuzu on Monday, assistant director for Debt and Aid Management in the Ministry of Finance, Betty Ngoma, said the decision seeks to improve effectiveness and efficiency in development activities.

Said Ngoma: “We have realised that we have so many projects of smaller sizes, but with minimal impact on the ground. So, we want that a standalone project should be a minimum of $5 million so that we have projects that have bigger impact and contribute more effectively to development.

“It should be noted, however, that this is only a preference. We are not forcing the partners. But those who can manage should abide by this threshold.”

Ngoma said projects with smaller funding constrain the ministry in carrying out auditing and monitoring exercises.

“Too many smaller projects overstretch us because we have few people who have to be all over trying to monitor and come up with audit reports,” she said.

Nkhata Bay district commissioner Fred Movete welcomed the decision, saying it will control organisations with smaller projects.

He, however, suggested that government should include guidelines to force organisations on the amount of funds they need to spend in districts.

He said organisations also need to disclose the amount of money they spend in districts for the sake of transparency and accountability.

Movete suggested that there should be performance agreements between councils and development partners for easy assessment if intended goals of a project are achieved.

DCS is a strategic document that sets a framework for development cooperation for the next five years.

It serves as an operational framework for the implementation of the Government Aid Management Policy.

The DCS succeeds the 2006-2011 Development Assistance Strategy (DAS).