Government ha s secured $45 million (K78.7 billion) in emergency food security funding grant f rom the World Bank to purchase maize from Zambia.
Minister of Finance Joseph Mwanamvekha announced this at a media briefing yesterday in Lilongwe as he presented outcomes of his trip to World Bank Annual Meetings, which he attended recently.
Mwa n amv e k h a s a id the Wo r l d B an k ha s committed to make the funds immediately available adding that China and the International Fund for Agricultural Development (Ifad) have each pledged $3 million (K5.2 billion) for the purchase of rice and other food items to support vulnerable households.
Mwanamvekha said: “On the issue of food security I am happy to report that, our cooperating partners have responded quickly such that as we speak now the World Bank has committed to give us $45 million.
“As we speak right now, they are already committed, we have received the communication, what is now important is for us to receive the money and start the procurement process.”
He said the Zambia maize (where Malawi wants to import 200 000 metric tones) is being offered at a reasonable price of about $355 (about K621 600) per tone which is equivalent to K621 per kilogramme (kg) and way below the current local prices of around K1 300 per kg.
Mwanamv ek ha a l so said during the World Bank annual meetings, he engaged other partners like the African Development Bank (AfDB), International Monetary Fund (IMF), IFAD and the Chinese government on financial support needs.
“We have also engaged other institutions like the African AfDB. They have also committed that they are going to support. They are also going to give us money for food.
“The Chinese government has committed that they will give us $3 million for be buying rice which will be delivered as soon as possible,” Mwanamvekha said.
Meanwhile, the minister said he also met IMF team on the resumption of the Extended Credit Facility and that the fund’s team will be in the country on November 5 to continue the discussions.
On the IMF discussions, governor of the Reserve Bank of Malawi Macdonald Mafuta Mwale stressed that the IMF deal will not involve devaluation as people are speculating.
“We would like to make it clear that the IMF deal does not mean to devalue the Kwacha. From our experience, we have devalued to almost 120 percent in the recent three to four years but we have not achieved anything, so we would like to find other alternatives of sustaining the exchange rate other than devaluing,” Mwale said.
According to the Ma lawi Vulnerability Assessment Committer (Mvac) Report, four million people are at risk of hunger in the 2025/26 consumption period, representing 22 percent of the country’s projected population of 18.5 million.
The Mvac annual food security assessment report released yesterday shows that the current projection represents a slight decline compared to the previous consumption period when about six million people faced hunger.
However, the number is an increase from 2.9 million people authorities estimated would face hunger between May and September this year.
The report states that Malawi’s national maize production for the 2024/25 agricultural season is below the country’s five-year average.
