Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha says the World Bank is prepared to extend a Rapid Response Facility (RRF) to cushion Malawi against inflationary pressure triggered by the ongoing US-Israel-Iran war.
The minister, who is currently in Washington, USA, for the World Bank and International Monetary Fund (IMF) Spring Meetings, said this in a telephone interview on Sunday after meeting officials from the two Bretton Woods institutions.
Mwanamvekha said the World Bank has given Malawi a green light to access funds under the RRF, an emergency funding mechanism
designed to provide swift financial support to countries facing sudden economic shocks such as those caused by conflict, fuel crises or pandemics.
Kenya has also requested rapid financial support from the World Bank to help it manage the economic shocks triggered by the Iran war.
Like other nations that are heavily reliant on energy imports, the East African country is also scrambling to stave off shortages of essential commodities, including petrol while managing cost increases that could drive up inflation.
Mwanamvekha, who could not indicate how much Malawi could access, said the World Bank is ready to help Malawi to stabilise the economy as well as to address the challenges the country is experiencing due to the ongoing Middle East conflict.
He said: “As you are aware, because of that war, our fuel, our fertiliser and most of the commodities have gone up.
“The World Bank has agreed to help us and they have told us that we need to apply under the Rapid Response Facility as soon as possible and they are ready to give us money.”
On his meetings with IMF, Mwanamvekha said the global lender is satisfied with Malawi’s progress on fiscal and monetary reforms and that discussions are now expected to focus
