By Staff Reporter
President Dr Lazarus Chakwera says the resumption of direct budget support by the World Bank signifies the return of investor confidence in the government of Malawi, 10 years after the group suspended its direct budget support to Malawi.
Dr Chakwera said this today 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, with US $80million set for immediate release.
He said the 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 Anna and Gombe, as well as COVID 19.
He added that the immediate release of US $80 million will provide the Reserve Bank of Malawi with the needed forex to boost import cover.
The Malawi leader said the continuous engagement between Malawi and the World Bank has now yielded fruits, and Malawi will continue working together with the World Bank as the country has put an extra gear towards economic recovery, through the capitalisation of agriculture, tourism and mining sectors ( ATM strategy).
Minister of Finance and Economic Affairs, Simplex Chithyola Banda said the signing of the agreement signifies the World Bank’s confidence and trust in the leadership of President Dr Lazarus Chakwera as well as reforms taken by Malawi government towards the country’s economic recovery and growth.
Chithyola Banda said Malawi will work tirelessly towards the country’s economic growth.
World Bank Country Director for Malawi Nathan Belete said Malawi won the budgetary support following necessary reforms which the country undertook to turn around it’s economy.
He said the World Bank remains committed to assisting Malawi through financial support and technical advice as the country moves out of the poverty trap and registers recovery and growth.
He said Malawi has great human resource and potential to attain it’s economic recovery and growth aspirations.
He announced that by the end of 2023, World Bank will have made new financial commitments totaling US $850, where US $240 million will go towards cyclone Freddy response and climate resilience, and will be approved next week.
