Undule says World Bank’s US$80m grant is endorsement for Malawi’s fiscal reforms

Governance and Human Rights Advocate Undule Mwakasungula has described the US$80 million grant from the World Bank’s International Development Association (IDA) to the Government of Malawi as an endorsement for the country’s fiscal reforms.

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On Thursday, IDA wrote the Minister of Finance and Economic Affairs, Simplex Chithyola Banda, informing him about the decision by its Board of Directors to approve US$80 million to the Republic of Malawi for the Fiscal Governance Program for Results. 

According to the communication, the grant has been made on an absence-of-objection basis.

Reacting to the news, Mwakasungula said the approval of such a huge amount of money to the people of Malawi is a conformation to the confidence the international community has in Malawi’s ongoing efforts to enhance fiscal governance and economic management.

“This support from the World Bank is global recognition of Malawi’s strides towards improving its economic environment.  It highlights the country’s commitment to promoting transparency, effective resource mobilization, and prudent budget execution.  These are important pillars for sustainable development and economic stability,” he said.

Mwakasungula stated that the approval of this grant is a direct result of the relentless efforts of Malawi’s leadership, particularly President Dr Laura Chakwera and commendable work of the Minister of Finance and Economic Affairs, Honourable Simplex Chithyola Banda.

He acknowledged that Banda’s strategic vision and dedication to reforming fiscal policies have been key in securing this international support. This grant is not just a financial boost but a validation of the reforms and policies being implemented under his stewardship.

“For Malawians, this support from the World Bank heralds a new era of fiscal responsibility and economic growth. It promises a more transparent and efficient public finance system, which is important for attracting further investments and promoting an environment conducive to sustainable development. The grant is expected to promote various government initiatives aimed at improving public service delivery, infrastructure development, and social programs that directly benefit the most vulnerable populations.

“Moreover, the successful acquisition of this grant is a clear indication that Malawi is on the right path. It reflects the positive outcomes of the government’s efforts in engaging with international partners and implement sound economic policies.  This achievement for sure should instill a sense of pride and optimism among Malawians, reinforcing the belief that collective efforts towards good governance and economic reform can yield tangible benefits,” stressed Mwakasungula.