The World Bank has released $57.6 million to Malawi in relief food aid to people severely affected by hunger.
In a statement, dated April 26, 2024, the Bank states that the aid is a quick-release in innovative grant financing to provide the country liquidity through Catastrophe Deferred Drawdown Option (CAT-DDO).
Reads the report in part: “This support comes in the context of the severe food crisis the country is suffering due to ElNino conditions in the wider southern Africa region. Moreover, a series of intense disaster over the last few years has left almost no time for the country to recover and has resulted in a severe erosion of food security at the national level.”
The World Bank says the support has been made following President Lazarus Chakwera’s declaration of the national disaster on looming hunger crisis.
“The World Bank Board of Executive Directors in December 2023 approved the Malawi First Growth and Resilience Development Policy Operation of $80 million to support core structural reforms in the country together with the $57.6 million that could be triggered in the event of a natural disaster or crisis,” adds the statement.
World Bank Country manager High Russell said Malawi’s ongoing food crisis is linked to recurrent strong El Nido conditions which is causing poor rainfall patterns in the Southern Region districts.
He said: “Malawi, together with the wider Southern Africa region, currently faces very serious food insecurity impacting millions. This crisis comes as the country is struggling to stabilise its macro-economy and get on a path of inclusive growth. We are pleased the Government of Malawi had the foresight to lock in a CAT-DDO instrument when securing budget support in the late 2023.
“This innovation can help the Government of Malawi’s efforts to mitigate the impact on the most vulnerable.”
Minister of Finance Simplex Chithyola Banda applauded the World Bank for the timely response, saying it will leverage the support from other development partners and well wishers to respond to the food crisis.
Said the minister: “We are pleased with the World Bank’s response to the call made by President Chakwera by providing additional budget resources under the CAT-DDO.”
The World Bank says since 2010, Malawi has experienced 16 major flooding, five storm-related droughts.
Climate change-related events are affecting vulnerable households and could increase poverty in Malawi, pushing millions of people into poverty over the years.
