Lilongwe, February 14: President Prof. Peter Mutharika on Friday asked the World Bank to consider resumption of the budgetary support to Malawi to fasten the social economic development of the country.
Mutharika made the appeal at Kamuzu Palace in Lilongwe where he held a serious meeting with a group of seven most top Directors of the Bank.
The President said the country was facing numerous economic challenges and it was in desperate need of the donor support.
Among other factors contributing to the country’s hardships, Mutharika cited the cash gate ushered by the previous administration as the major contributor as it resulted into donor pulling out their support to the country’s recurrent budget.
However the President said just like any other country in the world, Malawi needed support from donors to continue with the goal of an improved economy.
“We took leadership of this country nine months ago and for your information we inherited a number of problems. The government was almost bankrupt because most of our donor partners left after the cash gate scandal.
“As you might be aware 40 percent of our recurrent budget was from donor support and by sizing the assistance it meant hardships for the country. The Minister of Finance has tried his best but suffice to say that we need your support,” said Mutharika.
He informed the directors that his government was implementing various reforms and changing approaches in regards to management of the public finances to avoid a repetition of the cash gate.
“We have seen the economic consequences of the cash gate and I promise that nothing of that nature will ever happen in this country, however we need that support,” the President hinted
Leader of delegation, Alinter Smith promised about the Banks support to the country however after a further scrutiny of the finance management systems.
“We can do to Malawi after wesee the actual projects the World Bank is assisting and also have meetings with the finance minister. However, we are honored to have met President Mutharika whom we had a fruitful discussion.
“We have made it clear that the bank is ready to support only upon implementation of the financial management systems,” Smith said.
During the meeting the President notified the Bank of some of the programmes his government is undertaking which he requested for the support.
“ Before I came into power we had three platforms of reforms and the first one was about reforming the public service which was launched two days ago, secondly, was the iron sheet and cement subsidy programme where we targeting the poor masses to have decent houses and finally the community colleges which will be launched in due course.
“These are programmes that will help transform the country and we would like you assist us in more of our development areas,” the President said.
Mutharika also asked the bank to help in attracting investors to come and invest in the country citing good laws, security for investments, good markets and peace and stability as some the factors that makes the country a better place for foreign investment.
Before coming to Malawi, these World Bank directors visited Ethiopia and will proceed to Kenya
