World Bank gave Malawi K1.4tn in 2023
The World Bank says its financial commitment to Malawi in 2023 has totalled $850 million (about K1.4 trillion) and demonstrates its confidence and trust in the reforms the Malawi Government is implementing.
World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania Nathan Belete said this at Kamuzu Palace in Lilongwe yesterday during the signing of a $137 million (about K232 billion) direct budget support agreement.
He asked the government to continue with the policy reforms aimed at restoring the economy and to focus on growth by utilising the abundant natural and human resources in the country. He pledged the bank’s continued support to government’s social
protection programmes to meet the needs of the vulnerable.
Said Belete: “This is a sign that government has embarked on strong development programmes that are responsive to the needs of Malawians and also reform activities that are putting the country back on a strong development trajectory and as a result of this the World Bank has been proud to be associated with providing as much financing as we can.”
In his remarks, President Lazarus Chakwera said his administration has taken some bold steps to enact serious policy reforms
for restoring the short-term macroeconomic stability and medium-term growth which has led to the resumption of direct budget support.
To support implementation of some of the reforms, the President said government enacted legislation in data protection and disaster risk management to improve the operating environment and ensure that developments in digital services are well regulated and that disaster management issues are mainstreamed within development planning and implementation.
Said Chakwera: “Malawians know
painfully well that this has been a tough year for our country, which started with a cholera outbreak in every district, a crop destroying drought in the Northern Region, and a devastating cyclone across the Southern Region.
“These calamities, piling on top of the economic ruins left by previous shocks like Covid-19 and tropical storms Ana and Gombe, which destroyed a third of our electricity generation capacity, should have left our economy on its knees, but thanks to the support of our partners like the World Bank.”
The package will comprise an immediate release of $80 million (about K136 billion) to support reforms to enhance fiscal sustainability and transparency, stimulate private sector-led growth and increase resilience to exogenous shocks.
It will also include $57 million (about K96 billion), a development policy loan called Catastrophe Deferred Drawdown that the government can trigger during a crisis.
Malawi has won favour with some sections of multilateral and bilateral donors after it implemented some reforms, including the 44 percent kwacha devaluation to re-align it with its market value and committing to debt restructuring to secure an Extended Credit Facility programme with the International Monetary Fund
