World Bank responds to Chakwera’s state of disaster declaration with US$56.7m aid

LILONGWE-(MaraviPost)-The World Bank has released US$56.7 million (about MK99.3 billion) to the government to support Malawians affected by the food shortage that has hit the country.

This support comes barely after President Lazarus Chakwera announced a State of Disaster on March 23, 2024.

The World Bank said the funds will be released through the Catastrophe Deferred Drawdown Option (CAT-DDO) to provide the country with “immediate liquidity” as local authorities strive to deal with the fallout caused by El Nino conditions in the country.

The Catastrophe Deferred Drawdown Option (Cat DDO) is a form of contingent financing offered by International Bank for Reconstruction and Development to help countries take a proactive stand towards reducing exposure to catastrophic risk and access funds immediately after a natural disaster

Hugh Riddell, the World Bank Country Director for Malawi commended Malawi leadership for “having the foresight to lock in a CAT-DDO instrument when securing IDA [International Development Agency] budget support in late 2023.”.

“This innovation can help the Government of Malawi’s efforts to mitigate the impact on the most vulnerable.” He eraborated.

Minister of Finance and Economic Affairs Simplex Chithyola-Banda lauded the World Bank for providing the Malawi government with additional budget support to respond to the food crisis caused by El Nino.

He added that under the dynamic leadership Chakwera, Malawi will never be the same again.

Lloyd M’bwana

I’m a Lilongwe University of Agriculture and Natural Resource (LUANAR)’s Environmental Science graduate (Malawi) and UK’s ICM Journalism and Media studies scholar. Also University of Malawi (UNIMA) Library Science Scholar. I have been The Malawi Country Manager and duty editor for the Maravi Post since 2019. My duty editor’s job is to ensure that the news is covered properly, that it is delivered on time, and that it is created to the standards set out in the editorial guidelines of the Maravi Post.