Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha says Malawi will continue receiving donor support despite recent aid cuts by some development partners, stating that the economy remains on a positive trajectory.
Speaking in Lilongwe on Saturday during the launch of Tiyende Limodzi Endowment Fund for the Catholic Archdiocese of Lilongwe, the minister said fears that declining aid would derail the economy were misplaced.
His sentiments come days after the United Kingdom announced that it will cut its development assistance to Malawi by 60 percent in the 2026/27 financial year, with reductions expected to reach 90 percent by 2028/29 fiscal year.
Mwanamvekha said Malawi has already secured more than $900 million (about K1.6 trillion) from the United States under the America First Global Health Strategy and is set to receive additional financing from the World Bank and the African Development Bank.
| Andrew Viano
He said: “Some partners are reducing support, but others are increasing it. The World Bank has already committed funding, which will be announced shortly, and we will also receive support from the African Development Bank.
“Donors are not withdrawing; they are reallocating their investments. Malawi will continue receiving support, and even more than before.”
The minister said his forthcoming Mid-Year Budget Review Statement will outline progress under the government’s economic recovery programme and the savings realised through austerity measures.
Commenting on the Tiyende Limodzi Endowment Fund, Mwanamvekha described it as a significant contribution by the Catholic Church towards human development through sustainable financing of various interventions.
He said the initiative would, in the long term, complement government efforts to promote economic growth and sustainable development.
In his remarks, Tiyende Limodzi Endowment Fund board chairperson Phillip Madinga said Malawi must reduce its dependence on foreign aid by mobilising domestic resources.
“Recent reductions in donor funding show it is time for Malawi to become more self-reliant and develop home-grown solutions,” said the Standard Bank Malawi chief executive.
Archdiocese of Lilongwe Auxiliary Bishop Vincent Mwakhwawa said the archdiocese targets to raise K10 billion through the endowment fund to sustainably finance evangelisation, education, healthcare and community development.
He said investment returns from the fund would be used to finance projects, preserving the capital for future generations.
“Let us continue contributing to this fund from now until December so that we can reach our K10 billion target. The funds will then be invested through professional fund managers so that, within three or four years, we begin to reap the returns and continue transforming the lives of many people in Malawi and beyond,” said Mwakhwawa.
The launch raised K118 million in cash and pledges during the gala dinner, while an additional K43 million was raised earlier during a Mass.
President Peter Mutharika pledged K25 million, with Mwanamvekha contributing K15 million.
The Archdiocese of Lilongwe serves about 1.7 million Catholics through 52 parishes and operates more than 300 schools, six hospitals and 13 community health centres.
