Malawi reaping the fruits of donor confidence under President Dr Lazarus McCarthy Chakwera

Malawi President Dr Lazarus McCarthy Chakwera will go into history as a president who has managed to restore donor confidence following the good policies which Malawi is currently following.

In November 2013 , several donors announced the withholding of aid to Malawi in reaction to a growing scandal over government graft known as Cash gate.

Other traditional donors operating under the Common Approach to Budget Support (CABS) also followed suit withdrawing their 40 percent contribution to national budget.

Announcing the move during its first review meeting of the 2013-2014 budget review meeting the group said it decided to delay its aid to Malawi after its loss of confidence in the government’s financial system.

Former CABS group co-chair and head of Department for International Development (DFID) in Malawi Sarah Sanyahumbi said ;
“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 which have enabled people to take money out of the government system. While that is the case, you know the donors cannot 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 decision came a few days after the European Union and DFID withheld their funding to Malawi until authorities came to the root of the financial looting. Norway also completely suspended its funding to Malawi because of the problem.

It is under President Dr Lazarus McCarthy Chakwera who has managed to restore the diminished donor confidence. The donor confidence has helped in return of the International Monetary Fund (IMF).

The return of the IMF has seen all donors pulling in its resources , injecting direct budgetary support to Malawi.

One of the traditional donor who has returned in full force is Iceland Government whose Prome Minister Bjarni Benediktsson who is the head of Government is in the country.

Iceland has remained Malawi’s key donor partner which has transformed the Mangochi District.

Iceland is building a modern office park for the District Commissioner. Not only that Iceland is building Makanjira Martenity Hospital.

Currently most parts in Mangochi are connected to piped water grid courtesy of Iceland Government.

Malawi and Iceland Joint Technical cooperation has really produced the much needed fruits which Malawi is enjoying today under Dr Lazarus McCarthy Chakwera.