Malawians across the country can now afford a smile in as far as getting aid is concerned following World Bank’s approval of $80 million budget support to the country amid worries over the weakening economy.
Most of the donors that the government of Malawi rely on withheld their support on grounds that the Malawi had poor financial management among others.
Dubbed Agricultural Support and Fiscal Management Development Policy Operation (DPO), the support aims at boosting fiscal and agricultural reform efforts.
Further, the World Bank states that, “it aims to improve incentives for private sector participation in agricultural markets and to strengthen fiscal management through more effective expenditure controls and greater transparency”.
Country Manager for the World Bank in Malawi Laura Kullenberg hinted that the support is crucial to the country’s development as the agriculture sector remains a hing towards a stable economy.
Kullenberg was quoted saying that, “agriculture remains central to the fortunes of Malawi which makes this DPO a potentially high return operation as it will support an emerging reform agenda while acting as a stabilizing measure for the economy”.
Information on World Bank’s website shows that this is first of it’s kind in four years and that it is part of “response to the recent El Nino induced drought and food security crisis”.
Coincidentally, the development comes as Malawi Parliament budget sitting for 2017/2018 fiscal year has started today on May 5, 2017.