Luxembourg Deputy Prime Minister and Minister of Foreign Affairs Xavier Bettel has said future development cooperation and investment with Malawi will hinge on governance, transparency and accountability as the European country opens a new phase of engagement in Africa.
He said this on Monday during a meeting with President Peter Mutharika at Kamuzu Palace in Lilongwe.
Bettel said his country’s development and cooperation funding, drawn from taxpayers, requires strong safeguards to ensure that resources are properly used.
“For us, trust is essential. Our funds come from taxpayers and, therefore, require strong guarantees of transparency and accountability,” he told journalists.
Mutharika said Malawi is undertaking economic reforms aimed at shifting the country from an import and consumption-driven economy to one centred on production and exports.
He said he invited Luxembourg investors to take advantage of what he described as a conducive investment climate in Malawi, saying foreign investment is critical to economic transformation.
Meanwhile, Luxembourg and Malawi yesterday signed a General Cooperation Agreement, setting out priority areas for collaboration, accountability mechanisms and provisions allowing cooperation to be suspended in cases of misuse of funds.
Speaking during the event, Minister of Foreign Affairs and International Cooperation George Chaponda said the deal provides a flexible framework for development support in priority areas such as health, education and skills development, water and sanitation, climate change, governance and institutional strengthening.
In his remarks, Bettel said the partnership seeks to ensure Malawi’s natural resources benefit its citizens while supporting efforts to address economic and food security challenges.
