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EU’s K4.2tn windfall

The European Union (EU) has announced a €2 billion (about K4.2 trillion) Joint Strategy aimed to accelerate progress in Malawi’s governance, education, green growth, and social inclusion covering the period 2024 to 2027.

In his remarks during the strategy launch in Lilongwe on Wednesday, EU Ambassador Rune Skinnebach said the bloc is shifting from fragmented aid efforts from its member States to a more coordinated, impact-driven partnership as they support Malawi’s national development priorities.

Skinnebach makes a presentation during the meeting yesterday in Lilongwe.| Wycliffe Njiragoma

Describing the strategy as a “model for future cooperation” and a testament to the EU’s deepening commitment to teamwork and results, he said it also aligns with Malawi’s development blueprint, the Malawi 2063 Vision (MW2063) Agenda.

Said Skinnebach: “This Joint Strategy brings together the strengths of the EU and its member States—Germany, Ireland, the Belgian region of Flanders and others—as well as the European Investment Bank and development finance institutions. Together, we are committing €2 billion to help drive Malawi’s long-term transformation.”

Of the amount, he said €1.4 billion is in grants while €600 million is in concessional loans, forming one of the most significant coordinated development packages ever rolled out by the EU in Malawi.

“This isn’t about new money or flashy promises; it’s about doing things better. Rather than each country working in isolation, we are aligning our efforts to optimise impact, reduce duplication and ensure that support truly meets the needs of Malawians,” said Skinnebach.

Taking her turn, Irish Ambassador Kate Brady described the Joint Strategy as a dual-purpose instrument that aligns local programming with EU efforts, while also giving Malawi a stronger voice within European decision-making.

“As resident member States, we play multiple roles,” she said. “Yes, we run our own programmes on agricultural commercialisation, social protection and human rights, but we also advocate for Malawi within EU institutions. This strategy reflects that spirit of solidarity.”

Germany’s Chargé d’affaires Andreas Hartmann said Germany is in it for the long haul.

“We believe in meaningful partnerships. This Joint Strategy ensures we are not just contributing funding, but that we are strategically aligned with the EU and with Malawi,” he said.

The strategy comes at a time some of Malawi’s key development partners, notably the United States Government, have drastically reduced their support to Malawi and other developing countries.

United States head of Malawi Mission Amy W. Diaz told Nation Online last week that the US Government is transitioning partners like Malawi from aid to trade and that investment is one of the Embassy’s top priorities.

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