EU says Malawi yet to qualify for budget support

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The European Union (EU) says there are various measures that Malawi government need to take for the organisation to resume budgetary support.

Head of delegation to Malawi Marchel Gerrmann said this when reacting to the budget statement delivered by Minister of Finance Goodall Gondwe on Friday.

Marchel Gerrmann

EU Head of delegation to Malawi,Marchel Gerrmann

In his presentation, Gondwe said World Bank returned with budget support during the current financial year and it is due to disburse another one in the early part of the next financial year.

He added that government expects the EU to approve budget support for Malawi in the course of 2018/19 financial year.

However, Gerrmann said there is a roadmap towards budget support and as part of the agreement government need to further strengthen public finance management especially in procurement.

“If government makes those improvements in public finance management and if it maintains macroeconomic stability we will be willing to look at resumption of budget support,” said Gerrmann.

He then commended Gondwe for not including the EU budget support in the 2018/19 budget saying the minister of finance is right to be cautious.

The EU last provided budget support to Malawi in 2012 but it still supports the country in various sectors such as energy, agriculture, vocational training and education.

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