By Linda Kwanjana
It all started on 8 November 2013 , when bad news of all times broke. This time around 10 years ago, donors under the banner, Common Approach to Budget Support (CABS), announced that they have withdrawn budgetary support due to rampant looting of public funds (Cashgate).
This was what the CABS group co-chair and head of the Department for International Development (DFID) in Malawi Sarah Sanyahumbi had to say soon after their meeting at Capital Hotel.
“It is clear from what we already know, even though investigations are ongoing, that there are serious weaknesses in the government’s financial systems which allowed [what] we call Cashgate to actually happen. So we have seen serious weaknesses that have enabled people to take money out of the government system. While that is the case, you know the donors can not responsibly continue to put money into government systems. So, at the moment, while the investigations are going on, we have delayed any funding which was planned to go into the government system,” said Sanyahumbi.
The development brought economic problems in a country where 40 per cent of its national budget comes from donor aid.
DPP FAILED TO RESTORE DONOR CONFIDENCE
On 30 May 2014 , the then Opposition candidate Peter Mutharika was declared the winner of Malawi’s disputed presidential election under the Democratic Progressive Party with 36.4% of the vote.Following the win, Mutharika ruled the country for the full five year term but he failed to restore donor confidence. Donors were still scared to pump in their money due to rampant corruption in almost all corners of government.
RETURN OF DONOR CONFIDENCE UNDER PRESIDENT CHAKWERA
Barely few years in office ,President Chakwera demonstrated that he has a special mute attracting both bilateral and multilateral cooperations.
First, it was International Monetary Fund (IMF) pumping the much scares resources, and then World Bank followed.
Then, in 2023, Malawi’s major donors opened its doors.
This was when the whole Norway Minister of International Corporations
Bjorg Sandkjaer announced a direct budgetary support to Malawi economy worth K8Billion.
Sandkjaer said Norway is aware that Malawi is undergoing difficult situations because of the Russia / Ukrain war currently underway.
He said the war has a global impact in African countries.
“Russia’s illegal war on Ukraine has global repercussions, impacting African countries in particular. That is why Norway steps up its support with an extraordinary allocation to assist developing countries who are severely affected by the consequences of this war.” He said.
Just on Wednesday 16 October 2024, the European Union (EU) after 10 years opened its doors in supporting Malawi.
EU signed a 55 million EUR financing agreement with the Government of Malawi. The Signing Ceremony represents a significant milestone in the partnership between Malawi and the EU, as it marks the resumption of EU budget support at a critical time for Malawi.
With a total value of EUR 55 million, of which EUR 50 million is allocated as direct budget support over a 30-month period, the programme aims to enhance efficiency, effectiveness, and quality in the delivery of secondary education services by combining support for sector-specific processes with the strengthening of the overarching Public Financial Management framework. A first disbursement of EUR 20 million is envisaged before the end of the year.
Speaking at the ceremony, which took place in Lilongwe, EU Ambassador Rune Skinnebach said “the agreement is a powerful symbol of renewed collaboration and commitment to our shared goals of stability, progress, and inclusive development in Malawi, delivering on EU’s Global Gateway initiative”.
All this is happening under President Dr Lazarus McCarthy Chakwera leadership.
