AfDB provides US $30 million budget support to basic social services delivery in Malawi

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The Board of Directors of the African Development Bank Group meeting in Abidjan, approved a US $30-million sector budget support grant towards the protection of basic social services in Malawi.

The African Development Fund (ADF) grant is timely in view of the fiscal pressures faced by the Government in the delivery of basic services following suspension of general budget support in the wake of financial mismanagement issues. The Bank’s intervention will help preserve the gains Malawi has made in expanding access to basic services, which is central to human development and poverty reduction. 

The operation is results-oriented and will complement the Government’s own efforts in meeting the country’s requirements, and the support being provided by Malawi’s other Development Partners in the social sectors to achieve sector goals in health and education. 

Given the challenges in public financial management, the operation will ring-fence funding for health and education expenditures, while providing support for reforms to foster transparency and accountability in the management of public funds. It will also leverage procurement reforms to ensure accountability and value for money. 

Speaking in Lilongwe, AfDB Resident Representative for Malawi Andrew Mwaba said the Board of Directors in approving the grant welcomed the efforts by the Malawi authorities to implement the Government’s public financial management reform program, and underscored the commitment to the reforms at the highest level. The ADF Board urged the authorities to implement the reforms vigorously and demonstrate results in order to fully restore the confidence of all stakeholders and development partners in public financial management. 

The Government was also encouraged to sustain fiscal and monetary reform measures to maintain macroeconomic stability in order to foster rapid growth and lay a strong foundation for poverty reduction.