IMF offers Malawi additional loan of $76m

2016-06-21 11:31


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Blantyre - The International Monetary Fund (IMF) has offered an additional loan of $76.8m to Malawi, which is currently facing drought-propelled hunger.

"Malawi’s macroeconomic situation remains difficult, reflecting weather-related shocks and past policy slippages, which contributed to persistently high inflation," said IMF Deputy Managing Director Min Zhu in a statement.

The global lender said it had decided to release the additional funds to Malawi as the government had demonstrated commitment to implement structural reforms and reign in spending.

"Accelerating the implementation of public financial management reforms is indispensable to building trust and confidence in the budget process and ensuring control over fiscal operations," Zhu said in the statement issued on Monday.

The IMF has urged Malawi to ensure strong commitment controls, routine bank reconciliations, and regular fiscal reporting in order to preventing financial leakages as was the case in 2013 when over $32m was stolen from the Treasury in a scam called Cashgate.

"The pursuit of prudent fiscal policy is critical to safeguarding medium-term fiscal and debt sustainability. Improved revenue mobilisation and expenditure efficiency will reduce aid dependency and create fiscal space for social spending in pursuit of Malawi’s sustainable development goals," Zhu observed.

IMF’s package is good news for Malawi as the country estimates that almost half of its population of 16 million will require food relief towards the end of the year and early next year.

Malawi, like its neighbours Mozambique and Zimbabwe, has issued red alerts of the hunger crisis following El Nino-induced drought that destroyed crops. 

Read more on:    imf  |  zimbabwe  |  mozambique  |  malawi  |  southern africa  |  hunger

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.


Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.