Sigh of relief for Malawi: World Bank supports budget

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The World Bank Board of Executive Directors have approved an $80 million credit to the Malawi Government for general budget support.

This has been confirmed by a post on the World Bank’s website.

According to the bank, the budget support operation is the first of a proposed series of two operations and it aims to improve incentives for private sector participation in agricultural markets and to strengthen fiscal management through more effective expenditure controls and greater transparency.

It is known as the Agricultural Support and Fiscal Management Development Policy Operation (DPO).

The DPO supports a series of policy and institutional reforms that the Government of Malawi is undertaking in order to reduce distortions in, and improve the performance of the agricultural sector; and to restore basic public financial management and accountability systems.

“The Malawi Government is committed to ‘breaking the cycles of vulnerability in Malawi, by making the necessary reforms that will lead to a more resilient and private sector-oriented agricultural sector, and by rebuilding integrity in our public financial management systems,”said honorable Goodall Gondwe, Malawi’s Minister of Finance, Economic Planning and Development.

“We are grateful to the World Bank’s vote of confidence in these efforts, demonstrated by the approval of budget support, but we also recognize that there is a still a long way to go,”the Minister added.

The DPO is part of a broader World Bank response to the recent El Nino induced drought and food security crisis and brings the total support to recovery and resilience building efforts to $272.75 million.

Laura Kullenberg

Laura Kullenberg says the World Bank noted serious steps towards reforms in Malawi.

The DPO aims to catalyze some of the investment financing operations in the overall response by addressing some of the key binding constraints that have amplified Malawi’s vulnerability to climate induced shocks.

Malawi’s policies and institutions—particu­larly in the agricultural sector—have often exacerbated the country’s vulnerability and government has taken initial steps towards addressing vulnerability and this operation is to help boost those efforts.

“Agriculture remains central to the fortunes of Malawi which makes this DPO a potentially high return operation as it will support an emerging reform agenda while acting as a stabilizing measure for the economy,”said Laura Kullenberg, Country Manager for the World Bank in Malawi.

“The Government has taken some very important reform steps and it is critical to maintain momentum and deepen reforms going forward to move Malawi out of the cycle of vulnerability and onto a positive development path,”she added.

The $80million credit is from the International Development Association, the World Bank’s fund for the poorest.

Fours years ago, the World Bank and the United Kingdom decided to suspend aid pending the results of the government investigation into the alleged corruption scandal, popularly known as “Cashgate.”

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79 Comments

  1. Ndili pano kufuna ,,kuonesesa kapena kuvesesa ,,mmene ndlama imeneyi ingayendere kapena kugaiwidwa,,,ndsanve kuti wna wathyolera mthumba uko mdye ku.dputa,,,,,,,ife akumuzi mutiganizire pa ndlamayo coz tatopa ndkuotcha makala,,,chmanga takolola ,,,nanga tzidya chokhachokha,,no!tkagulisaso ndye kukodola galu wakuda aliphe kumeneko,,,,makala pamseu pavuta,,,,,,tipenyeni,,,,ma mp athu zukani plz,,,changu pamalo,,,koma chondeeee,,,kayikiseni ma zip,,matumba ama trouser anu,,,kut pomwe mukulingalira zothandza,,musaganizeso zoponya mthumba.ine wanu mMalawi weniweni.

  2. Thank you world bank.Koma amalawi tiyeni tizikonda ziko lathu komanso tisamangokhalira kumanyozana kokha-kokha ayi.Ena momwe world bank yachitilamu ndiokwiya zedi iyayi osangokhalira kusutsa chilichose ayi.Pempho kwa atsogole athu nanunso muzikonda dziko lanu komanso wonesetsani kuti chitukuko chifikile zigawo zonse osati kwanu kokha ayi.

  3. I THINK YOU ARE JOKING. A CREDIT CANNOT BE A SIGH OF RELIEF. IT’S A COLONIAL BURDEN BY DEFINITION. OUR CHILDREN WILL PAY BACK. DON’T FOOL US GOODALL

  4. sigh of what???? Lord have mercy koma tikudziwa what it means by credit or ngongole from the guys (world bank, IMF and such) nde ndi awa we can ma leaders azidyenso

  5. Plans have already been done. Campaign is around the corner. Promises and lies. Tikumangirani mlato. Koma tilbe msinje. Akuti abweretsa ndimsinje omwe. Poor Malawi. Stadium timanga zitatu. Chaponda’s stadium must be considered.

  6. Ndiye wina adziti boma lalephela..! Kusutsa kophwasula osati komanga. Zongoonekelatu kuti zotumidwa/chipyela mtima.. kumangoona choyipa mu china chiri chonse & muwaona sayamikirapo kanthu coz amafuna adzimva zoipa zokha.. munakaona ma press conference ndi ma comment 1million. Enanu zikakuvutani mukhonza kuthawira kunja ndikumakanfunira Malawi zoyipa koma enafe Malawi is everything we got..! Ndichitirepo mwayi kuthokoza a World Bank Poona kuti President Prof A. Peter Mutharika ndi Boma lake akuchitapo kanthu. For the President & his Government, Congrats..! AMalawi anzanga tiyeni tiphunzire patokha kuyamikira anzathu pamene achita bwino, kutsutsa komanga pamene sanachite bwino! Jealous down

  7. Olo madonors onse kuti ayambe kutithandiza chuma koma atsogoleri athu amazikundikira okha pamene ogwira ntchito m “boma nkumawapatsa ti ma K7 pa k100 yiliyonse,,,, mtikumbuke moyo wavuta pa Malawi pano.!

  8. Awa musawalore amabwera when our economy is gud ikafoyira athaweso mwinaso ndi amene amatisokinezeraso our economy system

  9. Nde wina aziti ‘because of the wise leadership of his excellency professor ..blah! blah! blah!! ndi chifukwa chake WB yakungongozani ndalamazo! Paja manyazi alibe.

    • Ayi, but they have seen kuti if they dont do it, then the country will collapse. Not because of the govt policies as you may want us to believe. Corruption is sky high. Selective justice being order of the day. Financial abuse nde osanena. A wise leader is seen in the way he handles certain crucial national issues but so far, sorry to say, there aint any qualities seen ever since except for praise singers lauding these qualities.

    • Kkkkk! Si koma inu a kubanja lachifumu? Or mayina anu okhawo simunakulire kuno. Maka ili mukuti Atakizekizesi li…..! Mwakulira kunja ndi ankolowo eti?Kkkkk. Inetu si Jumbe wake ameneyo.

  10. Good development. My prayer is for our national leaders to be more prudent and transparent on how they manage our finances to avoid a repeat of rampant cash gate in any form. This budget support remains a loan that still has to be settled, we are only spending our own money in advance. Or else, we will live better now and shift the struggle to our children. Bravo World Bank! Bravo our leadership for effort!

    • Ayise Dereck! You Are Right, Koma Ndikuuze Kuti Ngongole Imeneyi Pobweza Malawi Adzadzadziwaso Petro K3500 Pa Litre He! He!

  11. Chonde Alembeniko Aphunzitsi A Ipte 9 Ndi Odl 4 Akumvesa Chisoni.
    Lija Ndikale Anamizidwa Kokwana.Akondeni Amalawi Amzanu.
    Szotinso Mubenso.

  12. Boma Lagwilidwa Ili Ndi Ana Amuna Professor Athur Peter Muthalika Ndi Saulosi Clouse Chilima Pansi Pa Chipani Cha The Democratic Progressive Party(dpp)2019 Bomaaaaaaaa Ana Achepa Aliponso Wina

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