Germany releases K2.7bn for health

Germany has released K2.7 billion which was part of the budgetary support funds it had frozen, however, Germany will not immediately return to budgetary support.

The funds, amounting to five million euros will go directly into supporting health programmes as part of a grant agreement to support procurement of anti-polio vaccines and tuberculosis drugs and will be directly channeled through Unicef.

Addressing the media on Thursday in Lilongwe, Germany Ambassador Peter Woeste revealed the position after ceremony on the finance agreement to allow the redirection of the funds.

Woeste said: “The decision was taken in response to an immediate demand, in order to avoid shortages of vaccines and thereby protect and save lives.

“Germany had originally intended to provide the five million euro in form of general budget support, which has however been frozen since 2011.

“The continuous challenges in Malawi’s public financial and economic management led to Germany changing its membership in the “Common Approach to Budget Support [Cabs].”

He further said, “we are pleased to be able to redirect our funds to directly improve access to immunisation in Malawi. This underlines our continued commitment to support the people of Malawi independent of our membership status in the Cabs group.”

However, the Germany Ambassador could not commit on when the country will return to budget support but hinted that this may take longer as the next government needs to implement several public finance reforms.

“Finally, what we would like to achieve is to have government structures that can do the job. This [direct funding] is just an interim solution whether the interim solution is there for a few months, a year or years it will depend on how whoever is elected as new government will do in public finance management reforms.

“First important steps are being taken but it needs deep substantial reforms. The problems are not of one year but have been there for years perhaps longer than 15 years and it will need deep reforms and measures. Government is committed but more still needs to be done,” added Woeste.

Speaking earlier, Finance Minister Mazwell Mkwezalamba applauded Germany for releasing the funds saying the administration was working hard to court back donor support.

“This has been very quick reaction by Germany on our plea for support. We discussed the matter a few weeks ago and I was held meetings with the president on their support to Malawi and the Ambassador on Fridayreiterated their support to Malawi,” said Mkwezalamba.

Germany recently changed its status in Cabs to observer status following the scandal at Capital Hill.