The development could provide a moderate boost to Malawi’s public finances, and if well managed, could stimulate growth and help address the country’s fiscal and external imbalances.
A latest World Bank publication states that Malawi’s fiscal deficit remains among the highest in Sub-Saharan Africa, financed largely through debt monetization and costly borrowing; high inflation, and unsustainable debt with persisting forex shortages.
Malawi is set to receive a $150 million World Bank grant under the GESD 2 project, aimed at boosting local governance, improving service delivery, and advancing digital monitoring systems for real-time tracking of development projects nationwide.
Speaking at the opening of the CREWS Malawi workshop in Blantyre, PS Dr. Yusuf Mkungula said ongoing reforms—including a new strategic plan, meteorological policy, and quality management system—aim to deliver timely, accurate, and life-saving climate information. The initiative is backed by partners including WMO and the World Bank, who emphasized the importance of early warning systems and sustainable action in the face of climate threats.
The World Bank and the Malawi Government have signed a USD45 million (MK80 billion) grant agreement for the implementation of Phase 2 of the Malawi Food Systems Resilience Program under the Agricultural Commercialization (AGCOM) project.
The World Bank January 2025 edition of the Malawi Economic Monitor (MEM) has stressed the need for urgent economic reforms to stabilize Malawi's economy warning that failure to do so could lead to deeper fiscal distress, increased poverty, and economic stagnation.
The World Bank has approved US$265 million [approximately MK268 billion] to scale up agriculture commercialization and improve food resilience in Malawi.
Malawi's Ministry of Energy has launched the first-ever US$20 million off-grid Market Development fund dubbed Ngwe Ngwe Ngwe to increase access to electricity through off-grid solutions.
