Malawi Welcomes African Development Bank Budgetary Support
Gerald Pascal Bussier, AfDB's regional director general for Malawi's constituency, detailed the bank's two-pronged assistance package.
LILONGWE, Malawi - Malawi's finance minister thanked the African Development Bank (AfDB) on Wednesday for extending crucial budgetary assistance totalling $23 million to bolster the country's economic recovery program, writes Judgement Katika.
Speaking during a meeting with an AfDB mission team, Minister Simplex Chithyola Banda said the influx of funds comes as the government pursues its Recovery, Develop and Protect (RDP) roadmap focusing on forex stability, fuel supplies, food security and agricultural inputs in the near term.
"It is pleasing that AfDB has come to the rescue of the government through provision of budgetary support," Banda said.
He noted the partnership aligns with Malawi's priority of collaborating with financial institutions on major infrastructure and development projects.
Banda acknowledged battling low farm output and manufacturing holds Malawi back from realizing its economic potential.
The budgetary support and AfDB's wider $600 million country strategy for 2023-2028 will help confront those challenges, he said.
Gerald Pascal Bussier, AfDB's regional director general for Malawi's constituency, detailed the bank's two-pronged assistance package.
Beyond general budget backing, $219 million goes toward high-impact investments across multiple sectors.
"Apart from the budgetary support, AfDB is also contributing $219 million through the Country Strategy Paper which has already been approved as part of the $600 million co-financing with other donor partners," Bussier said.
Priority areas span transport networks, energy generation and transmission, water and sanitation, agriculture, health, education and institutional capacity building. The integrated approach aligns finance streams with Malawi's development vision.
Specific projects earmarked include improving road quality and safety on the M1 corridor connecting Malawi's three major cities, along with rehabilitating the Nacala railway line to Mozambique for efficient freight and passenger movement.
AfDB also looks to increase electricity access through grid and off-grid solar solutions while making water more available across Malawi.
Supporting production and nutritional diversity in agriculture as well as enhancing irrigation and land use planning also features prominently.
Additionally, constructing and equipping vocational skills centres and hospitals focused on maternal health aims to develop Malawi's human capital.
Tertiary education enhancements are eyed to nurture talent and innovation.
Bussier said AfDB maintains close policy dialogue with Malawi's government to tailor financing terms to evolving needs and absorptive capacities.
The bank incorporates lessons learned from previous collaborations to maximize outcomes.
Development partners have voiced concerns over corruption and mismanagement risks associated with certain large-scale projects in the past. AfDB intends to mitigate such issues through transparency, local oversight mechanisms and anti-graft audits.