Donor Confidence: IDA approves K61.28Bn for Malawi’s Gonarnance Enable service Delivery Project

In a bid to achieve strong Local Authorities’ institutional performance, responsiveness to citizens and management, the International Development Association (IDA) Board has approved a 35 million dollars (K61.28 billion) additional grant to Malawi for the Governance to Enable Service Delivery (GESD) Project.

Communication which this publication has seen addressed to Finance Minister Simplex Chithyola Banda, IDA Executive Director Floribert Ngaruko says the additional financing is to strengthen Local Authorities’ institutional performance, responsiveness to citizens and management of resources for service delivery.

Ngaruko says the resources will replenish a financing gap created by the activation of a Contingent Emergency Response Component (CERC) in December 2022, and no additional activities will be added.

In a separate interview, Minister of Finance Simplex Chithyola says the additional financing signifies the degree of confidence and trust donors have on this country

“We, as a ministry, are working so hard to change the economic malaise into economic prosperity, and these financial injections spell that economic recovery is bearing fruits,” Chithyola Banda said

As a matter of background, the objective of the Governance to Enable Service Delivery Project for Malawi is to strengthen Local Authorities’ institutional performance, responsiveness to citizens, and management of resources for service delivery.

The Project has four components and these include Performance-Based Financing for Service Delivery component which substantially enhance predictable development financing for Local Authorities in a manner that incentivizes sustained improvements in efficiency, equity and accountability in the execution by Local Authorities.

The project is also aimed at strengthening the Intergovernmental Accountability Systems component, which supports central government functions that are critical to strengthening intergovernmental accountability relations.