EU cushions Malawi economy with $147m grantBy REX CHIKOKO in Blantyre | Tuesday, July 10 2012 at 11:33
The European Union (EU) has given Malawi a grant of $147 million meant to cushion the shock facing the country’s economy following the devaluation of Kwacha.
Since Malawi devalued its currency by almost 50 per cent, the cost of living has been escalating.
However, the EU ambassador to Malawi Alexander Baum cautioned Malawi's government against abuse of public and donor funds and called on it to strengthen public finance management systems.
EU advised Malawi to spend the grant through social cash transfer programmes, rural income diversification and infrastructure development.
“A lot of government funds are being abused by public officers through loopholes in the procurement system and expenditure modes,” said Mr Baum.
Minister of Finance Ken Lipenga admitted abuse of funds by controlling officers within the government system but promised to ensure that the cash is well managed.
Meanwhile the Norwegian government says it is anticipating a boost in Malawi’s economic growth in the coming years following the resumption of aid by cooperating partners.
Norwegian ambassador to Malawi Asdjorn Eid-Hammer said with the recent regime change, the country’s economy will pick up, a development that will reduce the impact of the current challenges facing the citizens.
- Kenya's President receives TJRC report
- It's a tough life for Sierra Leone's gays
- The girl who met Gaddafi 'in hell'
- Kenyan call girls go high-tech
- Four killed at TB Joshua church stampede
- US 'committed to partnership with Kenya'
- Namibia finds oil for first time
- Botswana party makes U-turn on Malema's visit
- Iranians to pay $1m for illegal fishing in Somalia
Beyond the ballot