The Malawi government has signed three grant agreements with African Development Bank (AfDB), totalling to US$46.27 million (about K81 billion) which is meant to address climate and economic shocks, strengthen agriculture as well as Humanitarian support for El Nino.
This was revealed during a signing ceremony conducted at Ministry of Finance, Capital Hill in Lilongwe on Wednesday.
The grant, among others include a USD 23 million Agriculture Based Budgetary Support, USD 22.3 million for Disaster Risk Management and a USD 1 million Humanitarian Support for El Nino.
In his remarks, AfDB Country Manager Macmillan Anyawu said AfDB is committed towards strengthening partnership that exist between the bank and Malawi government.
“The signing is a great testament to strong partnership. We have continued to deepen our engagement in Malawi over the years and broaden our investments in every sector which helps to promote the blue to the economy.
“We have significantly invested in agricultural sector, which also includes in the Fisheries and aquaculture, water and sanitation, nutrition, renewable energy, Transport, roads and trade and facilitation of activities across the borders of Malawi with its neighbours,” said Anyawu.
Anyawu said the grant is a direct budget support to Malawi to help government implement some of the reforms it has identified as being critical for the achievement of increased agricultural production.
He encouraged government to ensure they implement the reforms as signed in the agreement.
Minister of Finance, Simplex Chithyola Banda said the grant represent a landmark investment in Malawi’s economic development future agenda.
“This means a degree of confidence that our partners have in this government under President Dr Lazarus Chakwera. Budget support stopped some 13 years ago, and today we have witnessed signing of USD 46.27 million grant which is a lot of money in Kwacha for three key issues such as agriculture, Disaster Risk Management and Humanitarian support.
“These three project agreements represent our collective commitment to driving agricultural transformation, strengthening public financial management, and building resilience against the inevitable challenges of tomorrow,” said Chithyola Banda.
He said this agreement will also ensure that Malawi’s agriculture sector thrives, farmers prosper, and the nation moves closer to achieving the goals set out in Vision 2063.
