ADB unveils $23m direct budgetary support to Malawi

The African Development Bank (ADB) on Wednesday unveiled a whooping $23 million as direct Budgetary support package.

This follows International Monetary Fund (IMF) approval of $174 million extended credit facility (ECF) few weeks ago. The approval is a symbol and signal of prudent leadership by the President Dr Lazarus McCarthy Chakwera Government.

ADB Southern African Director General Gerald Pascal Bussier said apart from the $23 million budgetary support and high impact project to Malawi, the Bank will also contribute $219 million through the Country Strategy Paper (CSP) which has already been approved as part of the $600 million co-financing initiative with other donor partners covering the period between 2023 and 2028.

Minister of Finance, Simplex Chithyola Banda has since applauded the African Development Bank (ADB) for the package saying will go a long way in cushoning the problems which the country is experiencing.

Chithyola Banda said Government of Malawi appreciates the support it is getting from the ADB as it embarks on Recovery, Develop, and Protect (RDP) economic roadmap, adding that it is pleasing that the Bank has come to the rescue of the government through provision of the budgetary support.

Further, the Minister said the country is facing numerous economic challenges due to low production in agriculture and retarded manufacturing industry which need to be revived for the country’s economic growth.

“The RDP drive has initiatives that will see the economy recover from the current situation and address the 4Fs which are Forex, Fuel, Food, and Fertilizers in the short-term,” said Chithyola Banda.

Additionally, the Finance Minister said it pleases Government of Malawi that ADB is collaborating with other development partners such as World Bank and OPEC Fund for International Development on large transformational projects.

Meanwhile , economic pundits have hailed Malawi Government for the economic policies being followed.