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Malawi finance minister upbeat over aid resumption

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Gondwe: Government is confident that some of the bilateral donors will resume budgetary support despite uncertainty
Gondwe: Government is confident that some of the bilateral donors will resume budgetary support despite uncertainty

Malawi’s Finance, Economic Planning and Development Minister Goodall Gondwe has said government is confident that some of the bilateral donors will resume budgetary support despite uncertainty clouding the possibility of aid in the 2014/15 budget.

Gondwe, addressing the media in Lilongwe last Thursday, could not assure if all donors will return in time for budget presentation in September.

The donors under Common Approach to Budget Support (Cabs) last week said they will only return to budgetary support if they are satisfied with the steps being taken to fight corruption, following the K13 billion Cashgate scandal.

But Gondwe stressed that while the donors have placed tough conditions for return to budgetary support, any steps the ministry will take will be driven by a desire for prudent management rather than satisfying donor conditions.

“Let me emphasise that we will do things because we want to do things properly not because of donor conditions. This country must not be run by donors. If we do things the right way and donors are satisfied that we are doing fine, that will be fine,” he said.

European Union (EU) Head of Mission and current Cabs chairperson, Alexander Baum, told the Weekend Nation that the donors will be closely watching the new government with expectations on improvement in fiscal discipline.

He said it is unlikely that budget support would resume before the end of this fiscal year.

“For the future, the use of government system channelling aid to Malawi will depend a lot on how determined and effectively the reforms that started will be continued,” said Baum.

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4 Comments

  1. I feel the only way to win these donors back is to seriously take all those involved in the cashgate and all other scams to book without fear or favour , including ………………………… (<20yrs ago.)

    1. From what Peter has said so far he seems to be wanting to prosecute re cashgate who ever you are! so watch the space. If he does not thats when we should criticise the man but from his appointments, his stance so far he is slowly gaining our confidence. Our job is to make sure he does not forget his promises because we depend on them!

  2. Why do we need aid money when we can raise millions locally from well wishers as we have just found out?

    1. well wishers may be able to support a wedding but do you seriously think well woshers can give money to the government on a yearly basis even if they were good hearted?

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