Chakwera describes signing of US$137 m direct budgetary support as restoration of donor confidence

Malawi President Dr Lazarus McCarthy Chakwera on Thursday described signing of US$137 million World Bank Direct Budgetary Support as a milestone and restoration of donor confidence for Malawi.

Speaking at the signing ceremony which took place at Kamuzu Palace in Lilongwe, Chakwera said was so delighted to see such development happening few days after the IMF approval of thebExtended Credit Facility.

“We have just witnessed the signing of the Grant Agreement of USD137 million between the Government of Malawi and
the World Bank, representing the return of direct budgetary support and the restoration of investor confidence in Malawi’s economy, for it is not lost on me that the last time the World Bank provided budget support was a decade or so ago,” he said.

Chakwera has since hailed World Bank for the support rendered to Malawi Government especially during this time when the country is passing through difficult economic development.

“So through you, Mr. Nathan Belete and Mr. Hugh Riddel, I express my heartfelt thanks to the World Bank for its solidarity and partnership with Malawi,” he said.

The president said this budget support package will help the Government in multiple ways since this has been a tough year for the country, which started with a cholera outbreak in every district, devastating drought in the northern region, and a devastating cyclone in the southern region.

“These calamities, piling on top of the economic ruins left by previous shocks like Covid-19 and tropical storms Ana and Gombe, which destroyed a third of our electricity generation capacity, should have left our economy on its knees,” he said.

The signing ceremony of US$137 million comes hot in the heels of president Chakwera’s meeting with donors in the country when he commended them in for the support which they have demonstrated.

Speaking at Kamuzu Palace in Lilongwe during a presidential diplomats dinner, Chakwera said donors have played a vital role in all national endeavors.

He reminded them about a proverb in Chichewa that says: “Mlendo adza n’kalumo kakuthwa” which means visitors often come with innovative solutions to problems that you would not have arrived at on your own.