Malawi, World Bank Sign $137M Grant for Budgetary Support
Chakwera said the agreement signifies the restoration of investor confidence in Malawi's economy.
LILONGWE, Malawi - President Lazarus Chakwera on Thursday presided over the signing of an agreement between the Malawian government and the World Bank for a $137 million grant to support the country's budget and help its economic recovery, writes Esther Banda.
Speaking at the signing ceremony at Kamuzu Palace in Lilongwe, Chakwera said the immediate release of $80 million from the total amount will provide the Reserve Bank of Malawi with much-needed foreign exchange to boost import reserves, increase production and grow the private sector for exports. It will also help protect the poor and build their resilience, he said.
Chakwera said the agreement signifies the restoration of investor confidence in Malawi's economy.
He noted that his government has enacted legislation on data protection and disaster risk management to support policy reforms, improve the business environment and ensure developments in digital services are well-regulated.
"These laws were enacted to steer Malawi forward," Chakwera said.
Finance Minister Simplex Chithyola Banda said the agreement represents the confidence and trust the World Bank has in the government's economic recovery programs.
"The World Bank can be assured the funds will be used as intended and Malawi will stay on the course of reforms agreed under the IMF's Extended Credit Facility program that unlocked these opportunities," Banda said.
The World Bank Country Director for Malawi, Nathan Belete said Malawi qualified for the grant after undertaking the necessary reforms to turn around its economy.
He said the World Bank remains committed to assisting Malawi through financial support and technical advice as it works to escape poverty.
An additional $240 million is expected to be approved next week for cyclone response and climate resilience programs, Belete added.
"This shows the government is embarking on strong, responsive development programs for the Malawian people," he said.