20100619
africanews

The World Bank and Malawi government have signed a $54 million (K8.2 billion) grant agreement as a general budget support. Malawi's Minister of Finance Ken Kandodo said the money will be used to clear domestic debt and implement other on-going government programmes.

“As general budget support, the funds will be used to finance ongoing programmes in the current fiscal year as well as settling domestic debt,” said Kandodo who signed on behalf of the government.

He said the implementation of various reforms to improve economic growth, the delivery of public services, protection of vulnerable groups and strengthening of public finance management systems are some programmes to benefit from the funds.

World Bank Country Manager for Malawi Sandra Bloemenkamp said although government has performed well in economic management, some areas need improvement.

“Malawi need to improve in the areas such as business environment, the provision of key infrastructure such as energy, functioning of agricultural markets and investing in Malawians and protection of the most vulnerable,” said Bloemenkamp.