Malawians can now breathe a sigh of relief following the announcement of a direct budgetary support to Malawi by the European Union (EU).
Bilateral partners stopped providing direct budgetary aid to the Government of Malawi due to concerns of theft of public resources and financial irregularities during the People’s Party (PP) and Democratic Progressive Party (DPP) administrations.
The incumbent had to take stringent measures to restore the donor’s confidence.
The EU Ambassador to Malawi, Runne Skinnebach, confirmed his institution’s resolution to resume direct budgetary support to the Government of Malawi, effectively becoming the first development partner to take action after the International Monetary Fund (IMF) approved Extended Credit Facility to Malawi.
Speaking at the Bwaila Media Club Elective Annual General Meeting in Lilongwe on Saturday, Skinnebach disclosed that the direct budget support will start next financial year.
He, however, stressed the need for the Malawi Government to empower the private sector, saying donor partners alone cannot develop the country.
Skinnebach also backed the recent 44 percent devaluation of kwacha, saying it will, in the long run, help the country.