The news of World Bank coming back to provide budgetary support to Malawi has made the country’s leader Peter Mutharika to be happy and to appreciate the support that the country has been getting through the bank.
The sentiments were made during an audience that Mutharika had at Kamuzu palace in Lilongwe on Monday with a World Bank delegation led by vice president for World Bank in Africa Makhtar Diop.
During the meeting, Diop disclosed that the bank was to come back with direct aid that was stopped following reports of financial mismanagement.
Reacting to the sentiments, Mutharika applauded the development as it will bail out Malawi from deficits in budgets that the country has been having following donor pull out of support in 2013.
Mutharika also applauded the support from the bank arguing that the country has benefited a lot from the aid and grants that have been given to Malawi.
“Your response to our situation has always been timely and significant. In response to the crop failure in the 2015/16 agriculture season, the Bank has committed US$104 million under the Malawi Drought Recovery and Resilience Programme. This includes US$50 million for the purchase and distribution of maize to the many affected households.
“The Bank has further committed some US$70 million additional financing under the MASAF IV project. The resources will be used for the social cash transfer and public works programmes. This will enable another section of the affected population to access food through the markets. The contribution of the Bank to the Social Cash Transfer Programme, together with that of other development partners, enables Malawi to achieve 100% coverage of the country.
“I am further grateful, that this year’s support is being provided against the backdrop of other life-saving interventions recently provided by the Bank. In 2015, the Bank provided US$80 million under the Malawi Floods Emergency Recovery Project, which included some US$15 million for maize purchases for humanitarian response,” said Mutharika.
Following reports of financial mismanagement donors and monetary institutions suspended direct support to the national budget a development that witnessed crippling of public service delivery in the country.
Lack of fuel for ambulances, and medicine are some of the problems that have been making headlines on the local press, as service delivery was paralyzed due to lack of funding from the government.