By Suleman Chitera

Malawi has secured US$130 million (about MK229 billion) in grant financing from the International Development Association (IDA) after Parliament approved two key funding Bills aimed at accelerating economic growth, supporting businesses and improving service delivery across the country.

The grants, presented to Parliament on Wednesday by Minister of Finance, Economic Planning and Decentralisation Joseph Mathyola Mwanamvekha, will finance two major government programmes focused on export expansion, private sector development and stronger local governance.Mwanamvekha urges MPs not to close vehicle windows

Of the total package, US$50 million (approximately MK87 billion) has been allocated to the Transforming High-Potential Resilient Value Chains (THRiVE) Project, which seeks to increase Malawi’s export capacity by supporting productive businesses and strengthening small and medium-sized enterprises (SMEs).

The initiative is expected to improve access to finance for businesses, streamline export licensing procedures, strengthen trade policies and provide matching grants to qualifying enterprises. Government believes these measures will help local companies become more competitive in regional and international markets while increasing foreign exchange earnings.Mwanamvekha: The Steady Hand Behind Malawi’s Economic Direction

Officials also expect the THRiVE Project to stimulate investment in value-added agricultural and industrial production, creating employment opportunities, particularly for young entrepreneurs and women.

Parliament also approved an additional US$80 million (around MK142 billion) grant for the Governance to Enable Service Delivery (GESD 2.0) Project, which is designed to strengthen local government institutions and improve the delivery of essential public services.

The programme will enhance fiscal decentralisation by increasing financial support to councils while promoting accountability, transparency and stronger public financial management. It also introduces performance-based grants that will reward councils demonstrating effective financial management and successful implementation of development projects.MEDF Must Break from the Past, Enforce Discipline — Mwanamvekha

Through GESD 2.0, communities are expected to benefit from improved investments in education, healthcare, water supply, sanitation, roads and other essential public services.

Speaking while presenting the Bills, Mwanamvekha said the grants demonstrate continued confidence from international development partners in Malawi’s economic reform programme and governance agenda.

He said the funding will help advance the government’s strategy of building a resilient economy driven by exports, private sector investment and stronger public institutions capable of delivering quality services.

The financing package is among the largest grant approvals secured by Malawi this year and comes as the government intensifies efforts to drive economic recovery, create jobs and improve livelihoods.Cash, Smear Campaigns, and Political Panic: The Plot to Undermine Mwanamvekha

Because the resources are being provided as grants rather than loans, the financing will not increase Malawi’s public debt burden, allowing the country to invest in priority development programmes without additional borrowing.

Following parliamentary approval, government is expected to complete the remaining administrative procedures before rolling out both projects, paving the way for significant investments in business growth, decentralisation and improved service delivery nationwide.