World Bank Supports Malawi’s Financial Management Drive With $80 Million

 May 24, 2024

By Joseph Dambulla

Nathan Belete, World Bank Country Director

The World Bank is providing an $80 million (About 139 Billion Kwacha) grant to support Malawi's efforts to improve its public finance management (PFM) through the Malawi Public Finance Management Strategy 2023-2028.

The grant, provided through the International Development Association (IDA), aims to enhance resource mobilization, budget execution, and transparency of public finances.

The grant complements the International Monetary Fund's (IMF) Extended Credit Facility (ECF) arrangement and the World Bank's Development Policy Financing (DPO), both approved in late 2023.

This alignment ensures a harmonized approach to supporting Malawi's economic development.

In a statement, Nathan Belete, World Bank Country Director, highlighted the program's innovative financing instrument, which will enable the government to access resources predictably over five years while harmonizing planning, coordination, and resource utilization.

Meanwhile, Simplex Chithyola Banda, Minister of Finance and Economic Affairs has expressed optimism that the grant will create a solid foundation for fiscal governance and sustain policy reforms throughout the PFM Strategy implementation.