The World Bank has released US$80 million (about K160 billion) to Malawi barely a month it also released US$56.7 million to support the implementation of the Malawi Public Finance Management Strategy.
A statement from the World Bank dated 23 May, 2024, says the grant was provided through International Development Agency (IDA) to support resource mobilisation, budget execution and transparency of public finances.
Read the statement in part signed by the Bank’s executive director Flolibert Ngaluko: “I am pleased to inform you that the Board of Directors of the International Development Agency (IDA) on May 23, 2024 approved on an absence-of-objection basis a grant to the Republic of Malawi in the amount of US$80 million for the fiscal governance programme for results. The grant will be on standard IDA grant terms.
“The objective of the operation is to improve the effectiveness of resource mobilisation, budget, execution and transparency if public finances in Malawi.”
The statement further says the focus will, among others, be on improve public resource mobilisation through value-added tax revenue collection and voluntary tax compliance.
It is also aimed at improving investment management with a climate-sensitive focus, enhancing procurement efficiency and operationalising IFMIS.
World Bank Country Director for Malawi, Tanzani, Zambia and Zimbabwe Nathan said the grant would help to improve low forex reserves Malawi has been experiencing.
