President Lazarus Chakwera says the immediate release of US$80 million (about K135 billion) by the World Bank will provide the Reserve Bank of Malawi (RBM) with needed forex to boost import cover.
Chakwera made the remarks at Kamuzu Palace in Lilongwe where he presided over the signing of a US$137 million budgetary support agreement between World Bank and Malawi Government. Out of the support $80 million dollars will be released immediately.
The Malawi president said the resumption of the direct budgetary support indicates that investors are confident with the current regime.
“This support will aid Malawi in its quest to recover from economic shocks which emanated from Tropical Cyclone Freddy, Cholera outbreak, drought experienced in some parts of Malawi, not forgetting effects of Tropical Storms Annah and Gombe as well as Covid-19,” said Chakwera.
He added that the country is geared to recover from the economic hardships facing the country through capitalization of agriculture, tourism and mining sector (ATM strategy).
In his remarks, Minister of Finance and Economic Affairs, Simplex Chithyola-Banda, highlighted that the country will work tirelessly towards the recovery of the economy as well as its growth.
On his part, World Bank Country Director for Malawi, Nathan Belete, indicated that the resumption of the budgetary support has come because Malawi took necessary reforms in order to turn around the economy.
Belete also said that by the end of this year, World Bank will make new financial commitments amounting to US$850, where US$240 million will go towards Cyclone Freddy response and climate resilience.
