AfDB to support Malawi’s economic infrastructure
The African Development Bank (AfDB) has approved its Country Strategy Paper (CSP) 2023-2028 for Malawi to promote inclusive and sustainable growth through agro-industrialisation, improving connectivity and strengthening competitiveness.
The strategy, according to a statement from AfDB, focuses on two priority areas—improving economic infrastructure to develop the industrial sector by investing in energy, transport, water, sanitation, and hygiene, and supporting economic diversification through investments in agriculture value chains.
The bank’s country manager Macmillan Anyanwu said when the proposed projects in the transport sector are completed, around 350 000 additional people will have access to improved road networks.
He said: “The bank plans to increase its funding in the transport sector to improve national and regional connectivity and access to input and output markets for economic actors, especially farmers, reduce transport costs and to strengthen regional integration.
“The bank will also support efforts to build climate change resilience by using eco-smart technologies and materials in road projects and sustainable road maintenance.”
On her part, the bank’s Southern Africa Hub director general Leila Farah Mokaddem said this was key for the country to achieve its Malawi 2063 aspirations.
Said Mokaddem: “The primary objective of the CSP 2023-2028 is to promote inclusive and sustainable growth through agro-industrialisation, improving connectivity and strengthening competitiveness.”
In the energy sector, the bank said it will support efforts to expand access to power through grid and off-grid power systems, and to reduce blackouts and the cost of electricity.
According to the strategy, Malawi faces structural and systematic weaknesses that elevate the economy’s vulnerability to shocks, with the main development challenge being to accelerate economic diversification and create job opportunities for inclusive growth.
In his Mid-Year Budget Review Statement, Minister of Finance and Economic Affairs Simplex Chithyola-Banda said government is expecting support from the AfDB to the tune of $30 million (about K51 billion) for the current fiscal year.
By September 2023, AfDB Group’s active portfolio in Malawi comprised 18 projects, with total commitments of $222.7 million.
